The Enforcement Directorate (ED) on Saturday arrested Punjab industries and power minister Sanjeev Arora following raids linked to an alleged financial fraud case.
The arrest marks the first time a sitting minister in the Aam Aadmi Party (AAP)-led Punjab government has been taken into ED custody.
The arrest came after searches were conducted at multiple locations across Punjab, Haryana and Chandigarh, including Arora’s residence and offices associated with his business interests.
ED Investigates Alleged ₹157 Crore GST and Export Fraud
According to reports, the ED is probing an alleged ₹157-crore GST and export fraud involving fake invoices generated through shell firms in the Delhi-NCR region.
Investigators claim that fraudulent transactions were used to obtain input tax credits and export refunds linked to mobile phone purchases. The agency has also alleged that over ₹102 crore was routed through UAE-based shell companies.
Prior to the arrest, the ED had reportedly attached bank accounts, demat holdings and immovable assets connected to Sanjeev Arora and Hampton Sky Realty under financial and foreign exchange regulations.
Aman Arora Also Under ED Scanner
The political pressure on AAP intensified after Punjab AAP chief and cabinet minister Aman Arora was named in a separate money laundering and land scam investigation.
The case reportedly involves real estate projects linked to Suntec City and Altus Space Builders in Mohali. The ED has alleged that certain middlemen helped secure political patronage for the accused builders.
Videos circulating on social media allegedly showed bundles of currency notes being thrown from a high-rise building during one of the raids.
Aman Arora has denied all allegations and publicly stated that he would quit politics if any wrongdoing is proven against him.
Bhagwant Mann Accuses BJP of Political Vendetta
Punjab Chief Minister Bhagwant Mann accused the Bharatiya Janata Party (BJP) of using investigative agencies to destabilise the Punjab government.
Mann alleged that opposition leaders facing central probes receive relief after joining the BJP, calling the ED actions politically motivated.
The latest developments come shortly after several AAP Rajya Sabha MPs defected to the BJP, significantly weakening the party’s strength in the Upper House.
Political Stakes Rise Ahead of Punjab Elections
The crisis has emerged at a crucial political moment for AAP, which currently governs only Punjab after setbacks in other states.
Sanjeev Arora is considered one of the most influential ministers in the Mann cabinet, handling major portfolios including industries, commerce, power and local bodies. His business background and support among Punjab’s urban Hindu trading community have made him politically significant for AAP.
Aman Arora, meanwhile, remains a key organisational figure within the party and represents AAP’s leadership structure in Punjab’s Malwa region.
BJP Looks to Expand Political Space in Punjab
The BJP has been attempting to expand its political footprint in Punjab after ending its long-standing alliance with the Shiromani Akali Dal (SAD).
Recent Rajya Sabha defections from AAP to BJP have added momentum to the party’s strategy in the state ahead of the 2027 Punjab Assembly elections.
Political observers believe the ED investigations and the resulting political instability could significantly impact Punjab’s political landscape over the next year.
