Who Is Sanjeev Arora? ED Arrests AAP Punjab Minister In Rs 100 Crore Fake GST Scam Case

Punjab Cabinet Minister Sanjeev Arora was arrested by the Enforcement Directorate (ED) on Saturday in connection with an alleged Rs 100 crore money laundering case linked to fake GST transactions. Officials said the arrest came after day-long raids were carried out at multiple locations connected to him and his business entities across Delhi, Gurugram and Chandigarh under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. According to officials, the ED launched coordinated searches early Saturday morning at five locations. Four of those premises were directly linked to Sanjeev Arora and his associated companies, while another office belonged to Hampton Sky Realty Limited, which is also being investigated in the same case. The agency said the investigation relates to an alleged large-scale network involving fraudulent GST transactions and fake billing operations.

Who is Sanjeev Arora and why has his arrest become politically significant?

Sanjeev Arora is a Punjab minister and businessman who has been associated with several commercial ventures before entering politics. He currently serves in the Punjab government and is considered an important face in the ruling Aam Aadmi Party setup in the state. His arrest has now triggered a major political row, especially with Punjab heading towards an important election cycle.

Following the arrest, AAP MP Sanjay Singh strongly criticised the ED and accused the Centre of targeting opposition leaders through investigative agencies. Speaking to ANI, Singh said, “ED is acting like a contract killer. State after state, raids are being done on rivals and they are being jailed. This has become the trend of ED. Their experiment in other states is being replicated in Punjab by PM Modi, ahead of elections. Today, cabinet minister Sanjeev Arora has been arrested. Nothing was found from Sanjeev Arora in three raids. Despite that, he has been arrested because this is the election model of the BJP. I would like to tell PM Modi, that his Aurangzeb-like policy will not work in Punjab…”

ED alleges fake GST invoices worth over Rs 100 crore were generated

ED officials alleged that Sanjeev Arora, through one of his companies, generated fake purchase invoices for mobile phones worth more than Rs 100 crore using non-existent firms allegedly operating out of Delhi. According to the agency, these fake transactions were used to illegally claim input tax credit (ITC), along with wrongful GST refunds and export-related duty drawbacks.

Sources within the agency claimed the alleged network was designed to siphon government money by exploiting loopholes within the GST framework. Investigators suspect that proceeds from the alleged crime were moved through export channels before being routed back into India from Dubai in an attempt to show the money as legitimate business income.

Investigators suspect shell companies and layered money trail in the case

Officials further claimed that the alleged operation involved shell firms and layered financial transactions that caused heavy losses to the government exchequer. The ED believes the case points towards a well-organised laundering network with multiple entities allegedly involved in routing and disguising the funds.

Search operations continued at several premises linked to Sanjeev Arora and his associates in Chandigarh and the Delhi-NCR region even as reports emerged about his arrest. These searches also included his official ministerial residence. Officials said the ED is likely to produce him before a special PMLA court and seek custodial interrogation to investigate the money trail further and identify others who may be connected to the alleged fraud.

(with inputs from ANI)

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