Chandigarh, May 9
In a major escalation of its probe into alleged financial irregularities, the Enforcement Directorate (ED) on Saturday conducted fresh raids against Punjab Industries Minister and senior Aam Aadmi Party (AAP) leader Sanjeev Arora and his associates in connection with an alleged ₹100-crore fake GST purchase and money laundering racket.
The coordinated searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, at five locations spread across Delhi, Gurugram and Chandigarh. Among the premises searched were Arora’s official residence and offices linked to Hampton Sky Realty Limited and other associated entities suspected of being part of the alleged laundering network.
According to ED officials, the investigation centres around what the agency describes as a “large-scale fraudulent GST and export-refund operation” involving fake mobile phone transactions. Investigators allege that companies linked to the racket generated forged GST purchase bills through shell firms operating out of Delhi. These firms, officials claim, existed only on paper and were used to create bogus invoices without any actual movement of goods.
The ED suspects that these fake invoices were then used to illegally claim input tax credit (ITC), export incentives and duty drawbacks worth crores of rupees, causing substantial losses to the government exchequer. Officials further allege that the mobile phones shown in the transactions were subsequently exported to Dubai, where the funds were allegedly routed back into India through layered financial channels in a classic round-tripping operation designed to conceal the origin of the money.
Sources associated with the probe said investigators are examining digital financial trails, export documentation, GST filings and banking transactions to establish the alleged money laundering chain. The agency is also probing whether the purported proceeds of crime were invested into real estate and allied businesses through connected companies.
The latest searches mark yet another ED action involving Sanjeev Arora in recent years. In April this year, the agency had raided his premises in Haryana and Punjab under the Foreign Exchange Management Act (FEMA). Earlier, in 2024, Arora had also come under the ED scanner in a separate land misuse-linked money laundering investigation during his tenure as a Rajya Sabha MP.
The repeated ED actions have triggered a sharp political confrontation between the ruling AAP government in Punjab and the BJP-led Centre.
Reacting strongly to the raids, Punjab Chief Minister Bhagwant Mann accused the BJP government of misusing central agencies for political vendetta. In a strongly worded statement, Mann said, “Once again, the BJP’s ED has come to Sanjeev Arora’s house. In one year, this is the third raid—twice in the last month. Yet, they haven’t found anything. The end of this unethical alliance of ED-BJP will begin from Punjab itself.”
AAP leaders echoed Mann’s allegations, claiming the raids were politically motivated and timed to target opposition voices ahead of crucial political developments in the state. Party functionaries alleged that central agencies were being selectively deployed against opposition leaders while ignoring corruption allegations involving BJP figures.
The BJP, however, rejected the accusations and maintained that the ED was acting independently on the basis of evidence gathered during the investigation. Party leaders asserted that no individual, regardless of political position, should be above scrutiny in matters involving alleged financial fraud and money laundering.
Meanwhile, ED officials indicated that the investigation remains at a crucial stage and further summons, questioning and seizures cannot be ruled out in the coming days. The agency is expected to closely examine the role of various firms, directors and financial intermediaries allegedly connected to the suspected GST fraud and export-linked laundering operation.
The developments have intensified political tensions in Punjab, with the case likely to trigger fierce debate over both corruption allegations and the alleged misuse of investigative agencies in the country’s increasingly polarized political climate.
