ED raids Sanjeev Arora over Rs 100 crore GST scam

The Enforcement Directorate (ED) on Tuesday launched a fresh round of searches in a money-laundering investigation involving former Punjab minister Sanjeev Arora and several associates. The agency is probing an alleged Rs 100 crore Goods and Services Tax (GST) fraud linked to the sale of mobile phones.

ED officials said they are searching about six locations at the same time in Jalandhar and Ludhiana in Punjab, and Bareilly and Noida in Uttar Pradesh. These include homes and business offices linked to people and companies under investigation. The main focus is Hampton Sky Realty Ltd., a company connected to Arora. Authorities believe money from the alleged GST evasion was routed through this real estate firm and other channels to hide the illegal funds.

This comes just weeks after Arora was arrested. The 62-year-old was taken into custody last month after a day-long search at his official home in Chandigarh and is now in judicial custody. Arora, who previously held important portfolios such as Power, Industry, and Commerce in the Aam Aadmi Party Government led by Bhagwant Mann, had his duties quickly assigned to other ministers after his arrest to keep the Government running smoothly.

The case has caused a stir in Punjab’s political scene. Arora’s arrest and the ongoing raids have raised questions about possible financial wrongdoing within the state’s ruling party.

The ED’s searches across several states show the agency’s efforts to trace the full path of the suspected fraud. Investigators are looking into how GST refunds and input tax credits from mobile phone sales may have been misused to create fake revenue, which was then moved into businesses that appeared legitimate, including real estate.

People familiar with the investigation said the new searches are meant to collect more documents, find evidence, and question those linked to the companies involved. Carrying out searches in four cities at once shows that the alleged scheme crossed state lines, with mobile phone supply chains reportedly used to divert large amounts of tax money.

The GST fraud, estimated at Rs 100 crore, is believed to involve a network of shell companies and fake invoices used to evade taxes. The Prevention of Money Laundering Act (PMLA) authorises the ED to seize property and assets derived from these crimes. The raids on Tuesday are expected to provide important clues that could help uncover the larger scheme.

This situation has been a political challenge for the Punjab Government. Chief Minister Bhagwant Mann’s team quickly reassigned duties to demonstrate their commitment to maintaining stability. Still, the case has raised further questions about how the AAP runs the Government, especially in key areas such as industry and commerce.

As the searches continue, the ED has not shared details about what they have found or whether there will be more arrests.

Legal experts say the agency’s careful approach shows that the case has been built step by step. Arora, who says he is innocent, will likely face a long legal process. These recent events have drawn attention to the connection between politics and financial crimes in India as the investigation moves forward. People in Punjab’s business and political circles are paying close attention.