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AAP calls ED's arrest of Punjab minister Sanjeev Arora ‘politically motivated’, BJP hits back
The arrest, which occurred after the central agency registered a new case against Arora under the criminal sections of the Prevention of Money Laundering Act
The Enforcement Directorate (ED) on Saturday arrested Punjab industries minister Sanjeev Arora from his official residence in c, soon after it carried out fresh raids against him and associates allegedly linked to him as part of a fresh money laundering probe, prompting criticism from the ruling Aam Aadmi Party (AAP) that termed the move “politically motivated”.
The arrest followed early morning searches at five locations, including the corporate offices of the Arora-led Hampton Sky Realty Limited and his official residence in Chandigarh. According to officials, Arora was “non-cooperative” during the investigation and will be transported to Delhi.
The arrest, which occurred after the central agency registered a new case against Arora under the criminal sections of the Prevention of Money Laundering Act (PMLA), makes the 62-year-old leader the first sitting minister of the Bhagwant Mann-led Punjab government to be taken into custody. Arora is the AAP MLA for the Ludhiana West assembly seat.
On April 17, ED had raided Arora and his linked entities under the civil provisions of the Foreign Exchange Management Act (FEMA). 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. The latest probe pertains to “fake” GST purchases of mobile phones worth more than ₹100 crore and subsequent exports to “round trip” alleged illegitimate funds from Dubai to India, according to ED.
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 the Foreign Exchange Management Act (FEMA) and the Income Tax Act, mandate a 180-day freeze on all linked assets.
The AAP slammed the ED action, with CM Mann terming it a “political vendetta” designed to “engineer defections.”
AAP national convener Arvind Kejriwal suggested the raids were intended to break the party’s ranks. “Modiji has got daily ED raids started in Punjab soon after the Bengal polls concluded. Modiji has coerced Punjab in the last few years and ill-treated Punjabis through different means,” he told reporters.
Targeting BJP, state finance minister Harpal Singh Cheema said: “Immediately after the West Bengal elections, ED shifted its focus to Punjab. BJP is trying to replicate the same model of intimidation and political manipulation in Punjab. ED first targeted businessman and MP Ashok Mittal and pressured him into joining BJP. Soon after, ED reached the residence of Cabinet Minister Sanjeev Arora. Sanjeev Arora clearly refused to join BJP, and what followed was witnessed by the entire country, day long raids followed by arrest.”
Meanwhile, Hampton Sky Realty Limited, linked to Arora, has issued an official statement asserting that it has “full faith in the judiciary and the legal process”. “Company presenting its position regarding the Enforcement Directorate (ED) action and the allegations against it. We have full faith in the judiciary and the legal process. We started mobile phone export business in May 2023 following Government of India’s “Make in India” initiative and the PLI Scheme as factors promoting mobile exports. The UAE is a major market for Indian mobile exports,” the release said.
It added: “We exported 44,471 genuine mobile phones and accessories. These included Apple iPhones, AirPods, Samsung, and OnePlus devices. All exports underwent Customs and OEM verification. Referring to IMEI verification, the company said that the unique IMEI number of every phone was verified. Apple and Samsung reportedly confirmed the exported phones as genuine. Tthe phones were activated abroad after export.”
“Denial of ‘Bogus Export’ Allegations: We reject the allegations of fake exports and round-tripping. All export proceeds were received through banking channels. Suppliers were paid entirely through banking channels,” the release said, adding that the firm was a “victim in a GST fraud case.”
“The fraud was a supplier-side issue. It had itself filed an FIR in the matter. The FIR was registered at Focal Point Police Station in Ludhiana.”
BJP hits back
The BJP hit back at the AAP, saying that the party and its convener, Kejriwal, were rattled because they know that “their days are numbered in Punjab.”
BJP spokesperson RP Singh said corruption allegations against AAP leaders are not baseless and claimed that it is Kejriwal, and not Modi, who is carrying out “Aurangzeb-like” actions in Punjab. “While the Punjab Police is not taking action against killings, the drug mafia or the sand mafia in the state, it is being used to target political opponents,” he said.
