The Enforcement Directorate (ED) on Saturday arrested Sanjeev Arora after conducting fresh raids at his residence and premises allegedly linked to him in a newly registered money laundering case. Hours later, a court remanded the AAP MLA to seven days of ED custody. The action has escalated the political confrontation between the Aam Aadmi Party government in Punjab and the BJP-led Centre ahead of the 2027 Punjab Assembly elections.
ED teams reached Arora’s official residence in Chandigarh’s Sector 2 early in the morning and launched search operations with heavy security deployment. Raids were also carried out at locations in Delhi and Gurugram, including the office of Hampton Sky Realty Ltd in Udyog Vihar. The fresh probe has been registered under the Prevention of Money Laundering Act (PMLA), with investigators alleging fake GST purchases of mobile phones worth over Rs 100 crore and exports allegedly used for “round-tripping” funds from Dubai to India.
According to the ED, fake GST purchase bills were allegedly generated using non-existent firms in Delhi to fraudulently claim input tax credit (ITC). The agency claimed the transactions were part of a larger financial network involving illegitimate exports and suspicious money transfers. The latest raids came less than a month after the ED had conducted searches against Arora and related entities under the Foreign Exchange Management Act (FEMA), during which assets worth Rs 157.12 crore linked to Hampton Sky Realty Ltd and associated entities were provisionally attached.
Arora, who represents Ludhiana West and earlier served as a Rajya Sabha MP, had previously said he would cooperate fully with investigators while expressing confidence that “truth will prevail.” He had also faced ED searches in 2024 in connection with an alleged industrial land misuse case. Investigators are now examining financial documents, digital records, and property transactions connected to the latest money laundering allegations.
AAP chief Arvind Kejriwal launched a sharp attack on the BJP following the arrest, alleging that the Centre was using central agencies to politically target Punjab. Kejriwal claimed the ED crackdown would politically damage the BJP in the state and accused the Centre of attempting to “coerce” Punjab through repeated raids and financial pressure. Punjab Chief Minister Bhagwant Mann also alleged that agencies like the ED and CBI were being used as “weapons” against opposition parties.
Kejriwal further linked the ED action to recent political developments involving former AAP-linked figures joining the BJP after facing investigations. He alleged that leaders who joined the BJP were spared, while those refusing to switch parties continued facing raids. The AAP leadership described the ED operations in Punjab as a “political witch hunt” orchestrated ahead of the 2027 elections, while opposition leaders maintained that the investigations reflected serious financial irregularities requiring scrutiny.
