CHANDIGARH: Punjab Power, Industries, Investment Promotion and Local Government Minister Sanjeev Arora has been arrested by the Enforcement Directorate (ED) following a search operation at his official residence in Sector 2 in an alleged money laundering case.
Meanwhile, the ED has also provisionally attached assets belonging to M/s Hampton Sky Realty Limited and entities under the Foreign Exchange Management Act (FEMA) linked to Arora in connection with an alleged foreign exchange violation. The violation involves bogus exports worth Rs 157.12 crore.
Sanjeev Arora is considered the most powerful minister in the Bhagwant Mann Cabinet and was mainly responsible for forging ties between the AAP government and industrialists of the State, in a case related to money laundering.
However, Punjab Finance Minister Harpal Singh Cheema told the media that no arrest had been officially confirmed yet. The ED is yet to officially respond to reports of his arrest.
Sources further added that the searches were conducted at five premises in Delhi, Gurgaon and Chandigarh, on the office premises of Hampton Sky Realty Limited, and Arora's residence.
A case of large-scale money laundering allegedly committed by Arora through his company in fake GST purchases of mobile phones worth more than Rs 100 crore and through exports to round-trip illegitimate funds from Dubai to India was detected.
Also, many fake GST purchase bills have been obtained from non-existent firms in Delhi to claim fake ITC. Besides a refund of GST on export credit and a duty drawback, thus causing loss to the exchequer and personal enrichment.
The latest search is the third raid at Arora’s residence.
Sources said that sleuths of the apex investigation agency raided Arora's official residence in Chandigarh at 5 am as some eight vehicles of ED officials were seen parked outside the residence during the search operation.
The action comes as Punjab continues to witness a series of searches by the agency on leaders and people linked to the ruling Aam Aadmi Party (AAP).
Last month, the ED had raided Arora, who is MLA from Ludhiana (West) and entities linked to him under the civil provisions of the Foreign Exchange Management Act (FEMA).
He had then said that he would fully cooperate with the probe agencies and that he was confident that the truth would prevail.
While in 2024, when Arora was a Member of Parliament of the Rajya Sabha, the ED had also carried out a raid in a money laundering case linked to the alleged misuse of industrial land for residential projects.
The ED has also provisionally attached multiple bank accounts and immovable properties of Hampton Sky Realty Limited, demat accounts and mutual fund holdings of Kavya Arora.
The ED has also attached the immovable properties situated in Ludhiana, Mohali and Gurugram, linked to Arora.
According to the provisional attachment order, the company, in connivance with its directors, employees and associated persons, allegedly generated fake purchase invoices through a network of shell entities to project bogus sales and exports.
It is alleged that against the total claimed exports of Rs 157.12 crore, transactions worth Rs 102.50 crore were routed through only two UAE-based entities M/s Fortbel Telecom FZCO and M/s Dragon Global FZCO.
Sources also claimed that Fortbel Telecom FZCO is a related or associated entity of M/s Fortbell Gadgets Private Limited, allegedly beneficially owned by Hemant Sood and Chander Sekhar.
Sources said that on April 19, the attachment orders were issued under Section 37(3) of the Foreign Exchange Management Act (FEMA), 1999, read with Section 132(9B) of the Income Tax Act, direct freezing of the assets for 180 days to secure the interest of revenue and facilitate further investigation.
This ED action follows search and seizure operations that it carried out on April 17 at the premises of Hampton Sky Realty Limited in Udyog Vihar of Gurugram, the offices of its major shareholder M/s Findoc Finvest Private Limited, and locations linked to Sanjeev Arora, Kavya Arora, Hemant Sood and Chander Sekhar.
Sources further added that the agency is examining the financial trail and transactions involving associated firms and individuals as part of its ongoing investigation into the alleged foreign exchange violations.
Also, the searches by the ED at the residence of Nitin Gohal, a prominent businessman and cabinet minister, and Aman Arora at Western Towers in Kharar, concluded in the wee hours of Saturday, around 1 am.
Meanwhile, search and seizure operations at other locations continued even after more than 48 hours.
The officials of the agency, who were accompanied by CRPF personnel, left Gohal’s ninth-floor flat with certain documents in three vehicles.
Sources said that the raid at the residence of Pritpal Singh Dhindsa in Phase 4 of Mohali was still underway on Saturday morning.
On Thursday, the ED claimed to have recovered more than Rs 1 crore in cash and incriminating documents from the raided locations under the provisions of the Prevention of Money Laundering Act (PMLA).
Punjab Chief Minister Bhagwant Mann, reacting to the raids, termed it a 'political vendetta'.
"Today, once again, the BJP’s ED had come to Sanjeev Arora’s house. In one year, this is the third time the ED has come to his house. During a raid last month, they did not find anything. This is the land of Bhagat Singh, who never bowed before the British. Punjab will never bow before (Prime Minister Narendra) Modi’s tactics. The end of this immoral alliance between the ED and the BJP will begin from Punjab itself," he said.
Aam Aadmi Party (AAP) National Convenor Arvind Kejriwal said, "Since this morning, ED raids have been going on at the house of a minister in the AAP-led Punjab Government, Sanjeev Arora. The job of the ED is to stop and investigate money laundering happening anywhere in the country. If ED carries out its action with that purpose, we have no problem with it. But what we have witnessed is that ever since the ‘Modi Raj’ (PM Modi's regime), CBI no longer works to stop corruption in this country, and ED no longer works to stop money laundering. They only work to break other parties, intimidate and threaten their leaders, and force them to join the BJP.”
The action taking place at Arora’s house since morning is also in the same direction. ED has not come to Sanjeev Arora’s house to investigate any money laundering. ED had raided once on April 17 as well. They raided all his premises in Gurugram, Ludhiana and Delhi. The raids continued for three days. What was it that they could not find during those three days that they have come looking for today?" he added.
Referring to pressure to join the BJP, Kejriwal continued, “At the same time, raids were conducted at Ashok Mittal’s premises too. Raids continued there for three days. After those three days of raids, Ashok Mittal joined the BJP. The raids stopped there, and his entire matter was settled. Arora did not join the BJP. That day, immense pressure was put on him to join the BJP. Had he joined the BJP that day, ED would not have raided today. Today’s ED raid has happened to teach him a lesson for not joining the BJP. Either join the BJP or get arrested.”
He asserted that it is extremely unfortunate how agencies are being misused under the ‘Modi Raj’.
“PM Modi is especially targeting Punjab. Injustice is being done to the people of Punjab. Attempts are being made to crush the people of Punjab. Over the last four years, PM Modi first tried to bring the three ‘black’ farm laws in Punjab. However, PM Modi had to bow before the protest of Punjab’s farmers. For the last four years, thousands of crores meant for rural development and for building village roads connected to mandis have been stopped by the Prime Minister,” he added.