Sanjeev Arora sent to 7-day ED custody, arrested yesterday in Rs 100 crore GST scam
Punjab Government Industries Minister Sanjeev Arora has been remanded to seven-day Enforcement Directorate (ED) custody by a Gurugram court. The ED produced him before the court after his arrest on Saturday and sought 10 days' remand for questioning. However, the court granted the agency seven days' custody.
This action has been taken in connection with an alleged ₹100 crore money laundering and fraudulent GST transactions. The Enforcement Directorate (ED) will now investigate the entire network by questioning the minister and companies associated with him. Arora, 62, was arrested Saturday evening from his Chandigarh residence by the Enforcement Directorate (ED) in connection with the GST fraud case.
ED's rapid raids
The ED conducted simultaneous raids at several locations in Delhi, Gurugram, and Chandigarh on Saturday morning. According to the agency, a total of five premises were searched, four of which were directly related to Sanjeev Arora and companies associated with him. An office of Hampton Sky Realty Limited, which is under investigation in this case, was also raided.
Sanjeev Arora in 7-day ED custody
The raid was conducted under the Prevention of Money Laundering Act (PMLA), 2002. After a day-long operation, the ED arrested Arora on Saturday evening. ED officials brought Arora from Chandigarh to Gurugram, Haryana, by road. The PMLA court in Gurugram remanded Arora to ED custody for seven days. The agency had sought a 10-day remand, but the court granted only seven days.
ED's allegation
The ED alleges that a company linked to Arora generated fake invoices for mobile phone purchases worth over ₹100 crore from alleged shell companies in Delhi. According to the investigating agency, these fraudulent transactions were used to fraudulently avail input tax credit (ITC), GST refunds, and duty drawbacks. Officials say several shell companies and suspicious financial transactions are also being investigated in the case. The agency will now examine digital records, banking transactions, and export documents.
The company denied the allegations
Following its name being mentioned in the case, Hampton Sky Realty Limited issued a statement stating that it has full faith in the judiciary and the legal process. The company claimed that it began its mobile phone export business in May 2023 under the central government's Make in India and PLI schemes.
The company stated that all its exports were genuine and compliant, and that all payments were made through official banking channels. It claimed to be a victim of supplier-level GST fraud, and it also filed a police complaint in 2025.
AAP targeted the central government
The arrests have sparked political reactions. Punjab Chief Minister Bhagwant Mann and Aam Aadmi Party (AAP) supremo Arvind Kejriwal have condemned the ED's action and accused the central government of misusing central agencies. AAP leaders say opposition leaders are being targeted. The party has accused the central government of using agencies like the ED and the Central Bureau of Investigation as tools to intimidate opposition leaders and force them to join the BJP.
BJP counterattacks
Meanwhile, the BJP retorted, saying that Kejriwal and his party are panicking because they know their days in Punjab are numbered. Meanwhile, the ED maintains that its action was based solely on evidence and financial investigations.
