Punjab Minister Sanjeev Arora Held in GST Fraud Case, Gets 7-Day ED Custody

Punjab Industries Minister Sanjeev Arora, 62, has been sent to seven-day Enforcement Directorate (ED) custody by a special Prevention of Money Laundering Act (PMLA) court in Gurugram. He was arrested on May 9 from his official residence in Chandigarh in connection with a money laundering case linked to alleged fake GST transactions worth over ₹100 crore involving mobile phone exports and round-tripping of funds from Dubai.

The ED alleges that Arora and associated entities acquired fake GST purchase invoices from non-existent firms in Delhi to claim fraudulent Input Tax Credit (ITC), facilitating the laundering of illicit funds through a company linked to him, Hampton Sky Realty Ltd, which was also searched in Gurugram. The agency had sought 10-day remand but was granted seven days, while Arora's legal team called the case politically motivated, claiming no prior investigation was conducted and that they have not received a copy of the FIR.

The arrest has sparked political tension, with Punjab Chief Minister Bhagwant Mann and AAP leader Arvind Kejriwal condemning the ED action as misuse of central agencies to target opposition figures. The BJP countered by accusing AAP of panic, asserting that the legal actions reflect accountability rather than political vendetta.

Arora is scheduled to reappear before the Gurugram PMLA court on May 16, as proceedings continue under the Prevention of Money Laundering Act.