Following fresh raids at his properties in Delhi, Chandigarh and Gurugram on Saturday (9th May), the Enforcement Directorate (ED) arrested Aam Aadmi Party (AAP) MLA and Punjab Power, Industries, Investment Promotion and Local Government Minister, Sanjeev Arora. He was arrested at his official residence in Sector 2, Chandigarh, after the raids that lasted about 7 hours.
In the early hours of Saturday (9th May), ED officials arrived at Arora’s Chandigarh residence in eight vehicles and conducted raids. This was the third conducted on Arora’s properties, since the first raid was conducted less than a month ago. ED officials conducted raids at five premises linked to Arora, in Delhi, Gurugram and Chandigarh, including his residence and the office premises of Hampton Sky Realty Limited, promoted by Arora’s family.
Delhi: ED conducted raids at locations linked to Punjab AAP minister Sanjeev Arora in Delhi’s Janakpuri and Chandigarh. The agency is investigating alleged office operations and related information at these premises pic.twitter.com/YPzZselK8C
— IANS (@ians_india) May 9, 2026
“ED had detected a case of large-scale money laundering allegedly carried out by Sanjeev Arora through his company involving fake GST purchases of mobile phones worth more than Rs 100 crore and subsequent exports used to round-trip illegitimate funds from Dubai to India. Multiple fake GST purchase bills were obtained from non-existing firms in Delhi to claim fake ITC, refund of GST on export credit and duty drawback, thereby causing loss to the exchequer and personal enrichment,” an ED official told the Tribune.
The action against Arora comes after a fresh case was lodged against him under the provisions of the Prevention of Money Laundering Act (PMLA). The ED investigation relates to fake GST purchases of mobile phones worth more than ₹100 crore and subsequent exports used to round-trip illegitimate funds from Dubai to India. According to ED, fake GST purchase bills were obtained from non-existent firms in Delhi to claim fraudulent input tax credit (ITC).
Earlier, on April 17, the ED had conducted searches at Arora’s properties under the civil provisions of the Foreign Exchange Management Act (FEMA). As part of the investigation, the central agency had attached movable and immovable assets worth ₹157.12 crore linked to Hampton Sky Realty Ltd, Arora and related entities.
