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₹540-cr ‘drug money’ laundered by Akali leader Bikram Majithia: Probe agency
This new case stems from findings during the ongoing investigation into a 2021 drug-trafficking case registered against Majithia under the Congress government
A special investigation team (SIT) probing a high-profile drug case has uncovered a massive money laundering operation involving over ₹540 crore, allegedly facilitated by former Punjab minister Bikram Singh Majithia.
The Punjab vigilance bureau (VB) on Wednesday arrested Majithia under Prevention of Corruption Act after raiding his residence in Amritsar on Wednesday morning.
A detailed seven-page first information report (FIR), registered in VB (flying squad) police station, Mohali, by AIG Swarandeep Singh is based on the SIT’s investigation and outlines an extensive money trail linking shell companies, suspicious foreign transactions and unexplained asset accumulation.
The FIR was registered against Majithia under Section 13(1)(b), read with Section 13(2) of the Prevention of Corruption Act, 1988, which deals with criminal misconduct by a public servant. Specifically, Section 13(1)(b) addresses the offense where a public servant dishonestly or fraudulently misappropriates or converts for their own use any property entrusted to them or under their control as a public servant. Section 13(2) prescribes the punishment for such criminal misconduct, which includes imprisonment for a term not less than one year, which may extend to seven years, and also makes them liable to fine.
This new case stems from findings during the ongoing investigation into a 2021 drug-trafficking case registered against Majithia under the Congress government.
Officials involved in the probe said that financial documents and transactions linked to Majithia revealed significant discrepancies, prompting the VB to take action under the Prevention of Corruption Act.
Majithia is already out on bail in the drug-trafficking case registered under Sections 25, 27A, and 29 of the Narcotic Drugs and Psychotropic Substances (NDPS) Act at the Punjab state crime police station. Prosecutors had alleged that he provided logistical and financial support to key figures in the Punjab drug racket, including Jagdish Bhola, Maninder Singh Aulakh and Jagjit Singh Chahal.
Majithia was arrested in February 2022 and spent several months in judicial custody before securing regular bail from the Punjab and Haryana high court in August 2022. The Supreme Court upheld his bail in April 2025, but imposed strict conditions, including a bar on influencing witnesses or making public statements about the case.
Majithia was most recently questioned in March 2025 by the special investigation team (SIT) regarding hawala transactions and suspicious financial dealings linked to drug syndicates.
The SIT, working in conjunction with the vigilance bureau (VB), has traced illicit drug money amounting to more than ₹540 crore being systematically funneled through both domestic and international financial channels. The investigation reveals that the laundered money was routed into businesses under Majithia’s control or influence.
As part of the ongoing investigation, raids conducted at three key locations led to the seizure of over 30 mobile phones, five laptops, three iPads, two desktops, handwritten diaries, property documents and large volumes of records related to Saraya Industries. The seized materials are expected to provide crucial evidence in linking the former minister to the illegal activities, said a VB official.
“So far, ₹540 crore of drug money has been tracked as being illegally generated and laundered using Majithia’s influence as a public servant while being an MLA and holding a cabinet post in the erstwhile Punjab government,” the spokesperson added.
The spokesperson confirmed that all necessary legal procedures were followed during Majithia’s arrest. The spokesperson further emphasized that the SIT and VB are committed to ensuring that the investigation reaches its logical and judicial conclusion, with all evidence presented before the court.
Investigators are also focusing on the sudden rise in assets linked to Majithia and his wife, which appear to be disproportionate to their declared income. This has prompted tax and enforcement agencies to extend their scrutiny into possible tax evasion and financial misconduct.
The FIR also identifies a network of at least 22 individuals and several companies that are suspected of being involved in the money laundering operation. Further arrests, seizures and forensic analysis of the confiscated devices and documents are expected in the coming weeks, the spokesperson said.
Majithia is expected to be produced in the Mohali court on Thursday, and the court has granted his lawyers permission to meet him.
The investigation is ongoing, with more developments anticipated as forensic analysis and further raids continue, the spokesperson added.
