Punjab Minister Sanjeev Arora Arrested by ED in Money Laundering Case

Punjab's Minister for Industries, Sanjeev Arora, was arrested by the Enforcement Directorate (ED) on Saturday, May 9, 2026, following extensive search operations conducted at his official residence in Chandigarh and other linked premises across Delhi, Gurugram, and Jalandhar. The arrest is a significant development in an ongoing money laundering investigation under the criminal provisions of the Prevention of Money Laundering Act (PMLA). According to ED officials, the probe uncovered an alleged large-scale money laundering scheme carried out by Arora through his company, Hampton Sky Realty Limited (formerly Ritesh Properties and Industries Ltd.). The allegations include the generation of fake GST purchases of mobile phones exceeding Rs 100 crore and subsequent exports used to 'round-trip' illegitimate funds from Dubai to India. The agency suspects that multiple fake GST purchase bills were obtained from non-existent firms in Delhi to claim fraudulent Input Tax Credit (ITC), obtain GST refunds on export credit, and avail duty drawbacks, thereby causing substantial loss to the exchequer and personal enrichment for the accused. The raids on May 9, 2026, were part of fresh searches in this ongoing investigation. This particular action marks the third time that Sanjeev Arora has faced scrutiny from the Enforcement Directorate within a year. Earlier, in April 2026, the ED had conducted searches at his office and residential premises in various locations, including Gurugram, Chandigarh, Ludhiana, and Jalandhar, under the civil provisions of the Foreign Exchange Management Act (FEMA). Prior to that, in October 2024, Arora, then a Rajya Sabha MP, was also subjected to ED raids in connection with a money laundering case related to the alleged misuse of industrial land for residential projects. Sanjeev Arora, who is also the MLA from Ludhiana West, is considered a powerful minister within the Bhagwant Mann-led Aam Aadmi Party (AAP) cabinet in Punjab, often seen as a crucial link between the state government and industrialists. The raids and subsequent arrest drew strong reactions from the AAP leadership. Punjab Chief Minister Bhagwant Mann and AAP national convener Arvind Kejriwal strongly condemned the action, accusing the BJP-led central government of misusing central agencies like the ED for political vendetta, especially after the recent West Bengal elections. CM Mann stated that this was the third time ED had visited Arora's house in one year and the second in the last month, asserting that nothing substantial had been found previously and that Punjab would not succumb to such political pressure tactics. Kejriwal further alleged that the Centre's actions were not aimed at recovering black money but at pressuring opposition leaders to join the BJP, drawing parallels with other AAP leaders who faced ED action. He cited instances where ED action allegedly ceased after individuals joined the BJP, claiming Arora was targeted repeatedly for refusing to switch sides. The investigation also extends to other entities linked to Arora, including the office premises of Hampton Sky Realty Limited. Officials stated that around 20 ED officials arrived in eight vehicles for the recent raid at Arora's Chandigarh residence, with CRPF personnel deployed to ensure the smooth conduct of the operation. The ED is examining allegations against the firm, including illegal changes in land use, inflated and fraudulent sales bookings to manipulate share prices, suspected insider trading, and round-tripping of funds from the UAE. Investigators are also probing claims that unaccounted money, potentially including proceeds from illegal betting operations, was laundered and channeled into legitimate investments through a network of companies and financial intermediaries. As of May 9, 2026, the investigation is ongoing, and the ED is scrutinizing seized documents and bank records. The case highlights the central agency's continued crackdown on alleged financial irregularities involving political figures, particularly those from opposition parties.

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