Chandigarh (Gurpreet Singh): A court in Gurugram on Saturday night sent Punjab Cabinet Minister Sanjeev Arora to seven-day custody of the Enforcement Directorate in connection with an alleged money laundering case linked to fraudulent GST transactions exceeding Rs 100 crore.
The action came after the agency arrested the senior Aam Aadmi Party leader following extensive searches conducted at several premises associated with him and his business interests across Delhi, Gurugram and Chandigarh under provisions of the Prevention of Money Laundering Act.
Investigators had requested 10 days of custodial interrogation, arguing that further questioning was necessary to trace the financial trail and examine alleged irregularities involving fake purchase records related to mobile phone transactions.
According to ED officials, the investigation centres around claims that bogus invoices worth over ₹100 crore were generated using shell entities allegedly operating from Delhi. These invoices were reportedly used to claim unlawful input tax credit benefits, export-related GST refunds and duty drawback incentives.
Officials further alleged that these transactions caused heavy losses to government revenue and may have been part of a wider mechanism to channel questionable funds through legitimate business routes.
The agency also carried out searches at the offices of Hampton Sky Realty Limited, which is under scrutiny as part of the ongoing probe.
Arora’s legal counsel challenged the arrest, calling the case politically driven. The defence argued that the ED had sought excessive custody despite what it described as an incomplete investigation.
The lawyer also claimed that the defence had not been provided with a copy of the FIR and alleged procedural lapses in the manner the case was initiated.
The court has directed Arora to be produced again on May 16, when further proceedings in the case will take place. The matter is expected to remain politically sensitive, given Arora’s influential position in the Punjab government.
