Chandigarh, May 9
Punjab Industries Minister Sanjeev Arora was arrested by the Enforcement Directorate on Saturday in connection with a money laundering investigation, escalating political tensions between the Aam Aadmi Party and the BJP-led central government. The Enforcement Directorate (ED) detained Arora from his residence in Chandigarh after carrying out raids at multiple locations across north India earlier in the day. However, the ED has not issued any official statement in this regard and is expected to release further information soon.
Officials said the searches were linked to a newly registered case under the Prevention of Money Laundering Act (PMLA). Apart from Arora’s official residence, the ED searched properties in Delhi and the Gurugram office of Hampton Sky Realty Ltd. According to the PTI, the latest investigation relates to alleged fake GST purchases of mobile phones worth more than Rs 100 crore and the suspected routing of funds through Dubai back into India. Investigators allege that bogus invoices were generated using non-existent firms in Delhi in order to claim fraudulent input tax credit.
Arora, 62, is an Aam Aadmi Party MLA from the Ludhiana West constituency and had previously been questioned by the ED in other financial investigations.
In April, the agency had raided premises linked to Arora under the Foreign Exchange Management Act (FEMA). It later attached assets belonging to Hampton Sky Realty Ltd, Arora and associated entities over alleged foreign exchange violations involving transactions worth more than Rs 157 crore. Bhagwant Mann condemned the arrest and accused the BJP-led central government of misusing federal agencies for political purposes.
Addressing a press conference Punjab Chief Minister Bhagwant Mann said agencies such as the ED and the CBI were being used as “weapons” against opposition leaders. In a social media post, he claimed the “unethical alliance” between the BJP and the ED would face resistance from Punjab. AAP supremo Arvind Kejriwal also accused the Centre of targeting AAP leaders through investigative agencies ahead of the Punjab assembly elections expected in early 2027. The AAP has repeatedly described the ED action as a political witch-hunt intended to weaken the party in Punjab, where it remains in power.
The latest arrest comes amid a series of ED actions against politically connected figures in the state.Arora has previously denied wrongdoing and said he would cooperate fully with investigators, expressing confidence that the truth would prevail.
