ED raids Punjab minister Sanjeev Arora again in ₹157 crore export fraud case

The Enforcement Directorate (ED) carried out fresh raids on Punjab industries and power minister Sanjeev Arora on Saturday as part of an ongoing investigation into an alleged export fraud and money laundering case worth ₹157.12 crore. This is the third major raid conducted by the federal agency this year against locations linked to the Aam Aadmi Party (AAP) leader and his associates.

The ED searched five locations in Chandigarh, New Delhi and Gurugram, including Arora’s official residence in Chandigarh. Officials also froze several bank accounts, demat accounts and immovable properties linked to companies and individuals connected to the case.

According to the ED, the investigation is related to alleged fake exports, foreign exchange violations and suspicious financial transactions involving shell companies based in the United Arab Emirates (UAE). The agency has attached assets for 180 days under provisions of the Foreign Exchange Management Act (FEMA) and the Income Tax Act.

Officials said the attached assets are linked to M/s Hampton Sky Realty Limited and other entities associated with Sanjeev Arora. The ED claimed that around ₹102.50 crore was routed through two UAE-based shell firms named M/s Fortbel Telecom FZCO and M/s Dragon Global FZCO.

Investigators suspect that money generated through illegal activities was sent abroad and later brought back into India in the form of apparently legal investments. This method is often called “round-tripping” in financial investigations.

The ED believes the case involves fake business transactions, bogus invoices and fraudulent claims linked to exports of mobile phones and electronic items.

Investigation focuses on fake exports

According to agency sources, the investigation centres around a large GST and export fraud network operating in Delhi-NCR and other areas. Officials suspect that fake companies were created to generate false invoices showing purchases and exports that may never have actually happened.

The ED claimed that these fake invoices were allegedly used to claim input tax credit benefits illegally. Investigators believe that the money generated through these activities was later moved through foreign shell companies before being brought back to India.

The agency had earlier conducted raids on April 17 at the offices of Hampton Sky Realty Limited in Gurugram’s Udyog Vihar area. Searches were also carried out at locations linked to major shareholder M/s Findoc Finvest Pvt Ltd and several individuals, including Sanjeev Arora, Kavya Arora, Hemant Sood and Chander Sekhar.

Following those searches, the ED attached bank accounts and financial holdings connected to the accused entities.

Officials said the latest raids are part of a wider criminal investigation under the Prevention of Money Laundering Act (PMLA). During the searches, the agency reportedly examined financial documents, electronic devices, company records and transaction details.

The ED stated that its actions are based on financial evidence gathered during the investigation. Officials said they are trying to trace the movement of money and identify the full network involved in the alleged fraud.

The case has become politically sensitive because Sanjeev Arora is a senior leader of the ruling Aam Aadmi Party government in Punjab.

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Political fight intensifies over ED action

The latest ED raids have triggered strong political reactions from AAP leaders, who accused the central government of misusing investigating agencies for political purposes.

Punjab chief minister Bhagwant Mann described the raids as “political vendetta” and alleged that opposition leaders were being targeted before the next Assembly elections. Mann said the AAP government would not be pressured by such actions.

AAP national convener Arvind Kejriwal also criticised the raids and claimed that investigating agencies were being used to weaken opposition parties. He linked the action against Sanjeev Arora to a wider political strategy aimed at forcing defections from opposition parties.

The political controversy increased further because another senior Punjab minister, Aman Arora, was recently linked to a separate money laundering investigation related to alleged real estate irregularities in Mohali and Chandigarh.

AAP leaders claimed that repeated raids against party leaders were being carried out to create pressure and damage the party’s image before elections. They also accused the central government of selectively leaking information to the media.

However, the ED rejected allegations of political targeting and maintained that its investigation is based strictly on evidence and financial records.

According to officials, the investigation into Sanjeev Arora first began in October 2024 when ED teams searched locations linked to alleged irregular conversion of industrial land into residential projects.

The investigation later expanded after officials allegedly found suspicious financial transactions and foreign exchange violations connected to export businesses and shell companies.

On April 19 this year, the ED formally froze assets and financial holdings related to the case for 180 days. Officials said the attachment was necessary to prevent the movement or disposal of suspected proceeds of crime during the investigation.

Saturday’s raids marked the third major action in the case and indicate that the agency is intensifying its probe.

Investigators are now focusing on tracing the money trail, identifying additional shell companies and examining whether more people were involved in facilitating the alleged fraud.

Financial experts say such cases are often complex because they involve multiple companies, fake invoices, international transactions and layered financial transfers designed to hide the origin of money.

The ED is expected to continue questioning several individuals connected to the companies under investigation. More searches and summons may also follow in the coming weeks.

The case has become one of the biggest financial investigations currently involving Punjab politics. Opposition parties are using the issue to attack the ruling AAP government, while AAP leaders continue to describe the raids as politically motivated.

As the investigation moves ahead, attention will remain on whether the ED uncovers additional evidence of money laundering, illegal exports or foreign exchange violations connected to the companies and individuals under scrutiny.