The Directorate of Enforcement (ED) on Saturday arrested businessman-turned-politician Sanjeev Arora from his official residence in Chandigarh, making him the first sitting minister of the Bhagwant Mann-led AAP government to be taken into custody.
The arrest follows a high-intensity crackdown that began in the early hours of Saturday, involving searches at five locations including Arora’s residence and the corporate offices of Hampton Sky Realty Limited.
The arrest comes as a blow to the 60-year-old leader, who had rapidly emerged as a powerhouse in the state cabinet, holding three critical portfolios: Industries and commerce, power, and local bodies. Arora made his political debut in 2022 when he was nominated to the Rajya Sabha by the AAP. He subsequently resigned from the Upper House in July 2025 after winning the Ludhiana West assembly byelection, a move that cemented his rising political graph before this sudden legal setback.
GST fraud, round-tripping alleged
Before his arrest, the ED provisionally attached bank accounts, demat holdings, and immovable assets linked to Hampton Sky Realty Limited and entities associated with Arora.
The investigation centres on a complex ₹157.12-crore export scam involving fake invoices from non-existent firms in the Delhi-NCR region to generate artificial purchases of mobile phones. Investigators allege a pattern of round-tripping, claiming that ₹102.50 crore was funneled through two UAE-based shell entities—M/s Fortbel Telecom FZCO and M/s Dragon Global FZCO—before being returned to India as legitimate investments.
These attachment orders, issued under FEMA and the Income Tax Act, mandate a 180-day freeze on all linked assets.
Widening crackdown on Punjab AAP leadership
Sanjeev Arora’s arrest comes just 48 hours after the ED formally linked Punjab AAP president and cabinet minister Aman Arora to a separate money-laundering and land scam investigation in Mohali.
The agency has intensified its scrutiny of the state’s ruling leadership, following earlier search operations in April at the offices of major shareholder M/s Findoc Finvest Pvt Ltd and premises linked to associates including Kavya Arora and Hemant Sood. The ED maintains that the current criminal proceedings under the Prevention of Money Laundering Act (PMLA) are strictly predicated on recovered financial evidence and the necessity of securing proceeds of crime.
Political vendetta, says AAP
The Aam Aadmi Party has reacted with fury, labelling the arrest a calculated attempt by the BJP-led Centre to destabilise the state government ahead of next year’s assembly elections.
Chief minister Bhagwant Mann termed the operation as a political vendetta designed to engineer defections, while AAP national convener Arvind Kejriwal suggested the raids were intended to break the party’s ranks, citing the recent defection of Rajya Sabha member Ashok Mittal to the BJP.
Minister Aman Arora accused the central government of using “selective leaks and fabricated narratives” to intimidate the opposition.
Case timeline
October 2024: During initial investigation ED raids Sanjeev Arora (then a Rajya Sabha member) over the alleged conversion of industrial land into residential projects.
April 17, 2026: Raids conducted at Hampton Sky Realty in Gurugram and associates under FEMA provisions.
April 19: Assets attached in ₹157.12 crore as the ED freezes bank accounts and demat holdings of Arora, Hemant Sood, and Chander Sekhar for 180 days.
May 9: Following a third major raid at his Chandigarh residence, Sanjeev Arora is formally arrested under the PMLA.
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