Punjab Minister Arrested in Rs 100 Crore GST Fraud Case

The Enforcement Directorate on Saturday arrested Punjab Minister Sanjeev Arora after carrying out searches for over eight hours in connection with an alleged large-scale money laundering and fake GST billing case linked to mobile phone purchases and exports. Officials said Arora was questioned at his residence before being placed under arrest following coordinated raids conducted at five locations across Delhi, Gurugram, and Chandigarh.

The ED claims it has detected a case of large-scale money laundering by Sanjeev Arora through his company, involving fake GST purchases of mobile phones worth more than Rs 100 crore and subsequent exports to round-trip illegitimate funds from Dubai to India.

Reacting to the action, AAP National Convenor Arvind Kejriwal said that central agencies such as the ED and CBI are being used to target opposition leaders and break other parties. Punjab Chief Minister Bhagwant Mann also accused the BJP of using central agencies as “political weapons” to target opposition leaders.

According to investigators, multiple fake GST purchase bills have been obtained from non-existent firms in Delhi to claim fake ITC, and also a refund of GST on export credit and duty drawback, causing loss to the exchequer and personal enrichment. The agency suspects the alleged transactions were used to fraudulently claim tax benefits and route illegitimate funds back into India through exports linked to Dubai.

The court will resume hearing on the matter, and further investigation into the alleged money trail and associated entities is underway. The ED will also analyze the documents and evidence seized during the raids to determine the next course of action.