Listen To This Post

CHANDIGARH: A sessions court in Gurugram late Saturday night remanded Punjab Cabinet Minister Sanjeev Arora to seven days’ custody of the Enforcement Directorate in connection with an alleged Rs 100 crore money laundering case linked to fraudulent GST transactions and fake mobile phone purchases.

The ED had sought 10 days’ custodial remand after arresting the senior Aam Aadmi Party leader following extensive searches conducted at multiple premises associated with him and his business entities in Delhi, Gurugram and Chandigarh under provisions of the Prevention of Money Laundering Act.

However, after hearing arguments from both sides, the court granted the agency 7 days of custody rather than the 10 days sought by investigators.

ED alleges fake GST transactions worth over Rs 100 crore

According to ED officials, the investigation centres on alleged fake GST purchases of mobile phones worth more than Rs 100 crore. The agency claims that fraudulent invoices were generated by non-existent firms operating from Delhi to claim input tax credit (ITC) illegally, export-linked GST refunds, and duty drawback benefits.

Investigators further alleged that the transactions caused substantial losses to the government exchequer and were part of a broader money laundering operation involving the routing of illegitimate funds.

As part of the probe, the ED also searched premises linked to Hampton Sky Realty Limited, which has been scrutinised in the investigation. The company is reportedly associated with Arora’s family business interests.

Defence terms are politically motivated.

Appearing for the Punjab minister, advocate Arjun strongly opposed the ED’s remand plea and accused the agency of acting with political motives.

“An application was filed seeking a 10-day remand, but the court granted seven days. The ED did not conduct a proper investigation. The agency registered the case on May 5 and arrested him on the morning of May 9. This is politically motivated and orchestrated,” Arora’s counsel argued before the court.

The defence also alleged procedural irregularities in the investigation and claimed that copies of the FIR had not been supplied.

“We have not received a copy of the FIR. The ED filed this FIR during the search order,” the lawyer said.

Political storm intensifies in Punjab

The arrest and subsequent custodial remand of one of the most influential ministers in the Bhagwant Mann government has triggered a sharp political confrontation in Punjab.

The ruling AAP has accused the BJP-led Centre of misusing investigative agencies to target Opposition leaders. In contrast, Opposition parties have intensified allegations of corruption and financial irregularities within the Punjab government.

Soon after the arrest, the AAP announced statewide protests against the ED action, with senior party leaders, including Arvind Kejriwal and Bhagwant Mann, rallying behind Sanjeev Arora and alleging political vendetta.

Next hearing on May 16

The Gurugram court has now fixed May 16 as the next date of hearing in the case, when Sanjeev Arora will be produced again after completion of the ED custody period.

Meanwhile, the Enforcement Directorate is expected to continue examining financial records, GST transactions, export documents and alleged links between various entities under investigation as part of its money laundering probe.