Punjab Minister Sanjeev Arora Arrested by ED in Money Laundering Case

The Enforcement Directorate (ED) intensified its crackdown on alleged financial irregularities in Punjab by conducting fresh raids on the premises of Punjab Industries Minister Sanjeev Arora on May 9, 2026, leading to his subsequent arrest. This marks the second such action against Arora within a month and the third within a year, triggering a significant political confrontation between the ruling Aam Aadmi Party (AAP) in Punjab and the Bharatiya Janata Party (BJP)-led Centre. Sanjeev Arora, an AAP MLA from Ludhiana West and a key minister holding portfolios such as Power, Industries, Investment Promotion, and Local Government, was taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA). The ED's investigation revolves around a newly registered money laundering case, which alleges large-scale financial irregularities. Specifically, the probe claims Arora's involvement, through his company, in generating 'fake' Goods and Services Tax (GST) purchase invoices for mobile phones exceeding ₹100 crore from non-existent firms based in Delhi. These fraudulent transactions were allegedly used to claim undue input tax credit (ITC), refunds of GST on export credit, and duty drawbacks, thereby causing substantial losses to the exchequer and facilitating personal enrichment. Furthermore, the ED suspects a sophisticated scheme of 'round-tripping' illegitimate funds from Dubai to India, utilizing these bogus exports. The day's operations saw ED teams conduct coordinated searches at five locations spread across Chandigarh, Delhi, and Gurugram, including Arora's official residence in Chandigarh's Sector 2. According to reports, around 20 ED officials arrived in eight to twenty vehicles, with heavy security deployment comprising CIA and Special Forces personnel. These raids also covered premises linked to Hampton Sky Realty Limited, a company promoted by Arora's family, which is also under the agency's scanner. This is not Arora's first encounter with the central agency. In April 2026, the ED had conducted searches against him and his linked entities under the civil provisions of the Foreign Exchange Management Act (FEMA). Earlier, in 2024, when he was serving as a Rajya Sabha MP, Arora was also subjected to ED action in connection with an alleged industrial land misuse case for residential development projects. The repeated actions underscore a deepening investigation into his financial dealings. The Aam Aadmi Party (AAP) has reacted strongly to Arora's arrest and the ongoing raids, unequivocally condemning them as politically motivated. National Convenor Arvind Kejriwal and Punjab Chief Minister Bhagwant Mann, along with other senior AAP leaders like Finance Minister Harpal Singh Cheema and Punjab AAP President Aman Arora, have accused the BJP-led Centre of weaponizing central investigative agencies such as the ED, CBI, and Income Tax Department against opposition-ruled states. CM Mann stated that 'Punjab will never bow down before Modi's tactics,' alleging that the BJP uses such raids to pressure leaders into joining their party. AAP leaders have further termed the ED as a 'contract killer' or 'supari killer' for the BJP, aiming to tarnish the image of Chief Minister Bhagwant Mann's administration and create a false narrative ahead of elections. They have questioned the timing of these raids, especially with upcoming elections, and alleged that despite multiple searches, no significant incriminating evidence has been publicly presented. The opposition, particularly the Shiromani Akali Dal (SAD) leader Bikram Singh Majithia, has taken a contrasting stance, asserting that the extensive deployment of forces indicates the gravity of the financial irregularities under investigation. Majithia labeled Arora a 'Money Exchanger' and claimed that the raids would expose the alleged diversion of public funds for personal luxuries. The political storm highlights escalating tensions in Punjab's political landscape, especially with the 2027 Assembly elections on the horizon, where ED activity has notably increased against politically connected individuals and entities in recent weeks. This incident is a significant development in Indian politics, particularly concerning federal relations and the use of central agencies, with both sides exchanging strong accusations of political maneuvering and corruption.

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