Investigators are probing suspected fake GST invoices worth over ₹100 crore, with allegations of fund round-tripping through hawala channels between Dubai and India.
BY PC Bureau
May 9, 2026: The Enforcement Directorate (ED) arrested Punjab Cabinet Minister Sanjeev Arora on Saturday following extensive raids at his official residence and multiple linked premises in Chandigarh, Delhi, and Gurugram.
Arora, who holds key portfolios including Power, Industries, Investment Promotion, and Local Government in the Aam Aadmi Party (AAP) government, has been accused of large-scale money laundering involving fake GST invoices and alleged fund round-tripping.
According to officials, ED teams launched early morning searches at Arora’s official residence in Sector 2, Chandigarh, as well as properties linked to his business interests, including firms in real estate and textiles. Multiple teams operating in nearly 15–20 vehicles cordoned off the premises, seized documents, and questioned individuals on-site. Arora was subsequently taken into custody after hours of interrogation.
Punjab Cabinet Minister Sanjeev Arora Arrested by ED
The Enforcement Directorate (ED) has arrested Sanjeev Arora, the Punjab Minister for Power, Industries, Investment Promotion, and Local Government.
THE CASE: ₹100+ CRORE GST & EXPORT FRAUD
The ED’s action stems from a fresh… https://t.co/35p4cVhskF— Palwinder Singh • CFA (@PalwinderCFA) May 9, 2026
Allegations at the core of the probe
The investigation centres on suspected fake GST transactions worth over ₹100 crore, primarily linked to mobile phone trade. The ED also suspects a complex money trail involving fund round-tripping between Dubai and India through hawala channels and related mechanisms. The case is being investigated under the Prevention of Money Laundering Act (PMLA).
This is not the first action against Arora. Earlier ED raids were conducted in October 2024 in connection with alleged misuse of industrial land for residential development, and again in April 2026 under FEMA provisions, involving suspicions of insider trading and betting-linked fund flows.
Punjab Cabinet Minister Sanjeev Arora Arrested by ED
The Enforcement Directorate (ED) has arrested Sanjeev Arora, the Punjab Minister for Power, Industries, Investment Promotion, and Local Government.
THE CASE: ₹100+ CRORE GST & EXPORT FRAUD
The ED’s action stems from a fresh… https://t.co/35p4cVhskF— Palwinder Singh • CFA (@PalwinderCFA) May 9, 2026
Political reactions intensify
The arrest has triggered strong political reactions in Punjab ahead of the 2027 Assembly elections.
AAP leaders, including Chief Minister Bhagwant Mann and national convener Arvind Kejriwal, called the action “political vendetta” by the BJP-led Centre, alleging that central agencies are being used to target key ministers and destabilise the state government. Punjab Finance Minister Harpal Singh Cheema initially said there was no official confirmation of the arrest during the early phase of the operation.
Arora, MLA from Ludhiana West, entered prominence after winning a by-election against the BJP and was later inducted into the Punjab Cabinet. He also has business interests in real estate through Hampton Sky Realty Ltd (formerly Ritesh Properties) and other sectors.
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Background and ongoing investigation
Arora has been an important figure in AAP’s Punjab leadership, particularly in industrial promotion and investment outreach. While critics have long questioned the overlap between his political responsibilities and business activities, the ED maintains that the case is based on independent financial intelligence inputs.
As of now, Arora remains in ED custody. He is expected to be produced before a special court, with the agency likely to seek further remand to trace the money trail, examine seized documents, and investigate possible involvement of associates.
The case adds to a growing list of high-profile investigations under the PMLA involving politicians across parties, intensifying debate over the role of central agencies in state politics. AAP has vowed to challenge the allegations legally, while the opposition has called for deeper scrutiny into alleged corruption networks.
The investigation is ongoing, with further details expected on the scale of alleged laundering and potential co-accused.
