Punjab Minister Sanjeev Arora Arrested by ED in Fake GST Bill Case

Sanjeev Arora Arrest: Punjab Minister Sanjeev Arora was arrested by the ED on Saturday in a money laundering case. The arrest followed an ED raid. The action was taken in connection with a money laundering case in Chandigarh.

Chandigarh: In a major crackdown, the Enforcement Directorate (ED) has arrested Sanjeev Arora, Punjab's Minister for Power, Industry, Investment Promotion, and Local Government. The arrest took place at his official residence in Sector 2, Chandigarh, following an extensive search operation.

Arora is considered one of the most powerful ministers in Chief Minister Bhagwant Mann’s cabinet and is viewed as the primary link between the Aam Aadmi Party (AAP) government and the state's industrialists.

Details of the Operation

The ED action began early Saturday morning when approximately 20 officials arrived at Arora’s residence in eight vehicles.

• Third Search: This marked the third search conducted at the leader's home, with the previous one occurring less than a month ago.
• Locations Targeted: Searches were carried out across five premises in Delhi, Gurugram, and Chandigarh. These included Arora’s residence and the office of Hampton Sky Realty Limited, a company promoted by his family.

The ED’s investigation is centred on allegations of large-scale money laundering conducted through Arora’s company. The key findings include:

• Fake Purchases: Alleged fraudulent GST purchases of mobile phones worth over ₹100 crore from non-existent firms in Delhi.
• Illegal Transactions: The use of these fake bills to claim Input Tax Credit (ITC), GST refunds on export credits, and duty drawbacks.
• International Links: Proceeds were reportedly used for the illegal movement of funds between Dubai and India.
• Public Loss: Officials stated the scheme resulted in significant losses to the government exchequer for personal financial gain.

Previous Scrutiny

This is not the minister's first encounter with the agency. In April, the ED conducted searches at the residential and office premises of Arora and his associates in Gurugram, Chandigarh, Ludhiana, and Jalandhar under the civil provisions of the Foreign Exchange Management Act (FEMA).