ED Conducts Raids on AAP Minister Sanjeev Arora Amid Money Laundering Allegations

The Enforcement Directorate (ED) has launched a significant operation targeting Punjab Cabinet Minister Sanjeev Arora, conducting searches at five different locations across Delhi, Gurugram, and Chandigarh. The action stems from ongoing investigations into alleged money laundering activities linked to Arora and his business, Hampton Sky Realty Limited.

According to reports, these investigations are centered on accusations of fraudulent Goods and Services Tax (GST) transactions and dubious export activities. Sources suggest that Arora’s company was allegedly involved in a large-scale money laundering scheme, which included the procurement of mobile phones through fabricated GST invoices exceeding ₹100 crore. The scheme reportedly facilitated the movement of illegitimate funds from Dubai back to India.

Officials claim that the modus operandi involved acquiring fake GST purchase bills from fictitious companies based in Delhi, enabling the claim of fraudulent input tax credits, GST refunds on export transactions, and benefits from duty drawbacks. This pattern of financial misconduct has raised serious concerns regarding the integrity of tax regulations and the potential misuse of the GST framework.

This is not the first time Arora has faced scrutiny from the ED. In April, the agency had previously conducted raids on his residences and offices in various cities, including Gurugram, Chandigarh, Ludhiana, and Jalandhar, under the Foreign Exchange Management Act (FEMA). Furthermore, he was also investigated in 2024 for an unrelated money laundering case that involved the alleged unauthorized use of industrial land for residential projects.

The ramifications of these developments could be significant, not only for Arora but also for the Aam Aadmi Party (AAP), of which he is a prominent member. Punjab Chief Minister Arvind Kejriwal has criticized the actions taken against Arora, accusing the central government of using investigative agencies to target political opponents. This situation adds a layer of complexity to the already charged political climate in Punjab, as the AAP navigates the challenges of governance while defending its officials against serious charges.

Source: scroll.in