Fresh ED Raids In Sanjeev Arora Money Laundering Case; Hindu Traders Targeted, Says AAP
ED raids in Sanjeev Arora case: The Enforcement Directorate carried out fresh searches Tuesday at six premises in Punjab, UP, and Delhi-NCR in the ongoing PMLA case linked to arrested Punjab Minister Sanjeev Arora and Hampton Sky Realty Ltd. AAP termed the action political targeting of Hindu traders; BJP said the raids concern a Rs 100 crore GST fraud.
North Desk Bureau
Chandigarh, June 9
The Enforcement Directorate on Tuesday carried out fresh searches in the ongoing money laundering investigation linked to Punjab Cabinet Minister Sanjeev Arora, covering six premises across Ludhiana and Jalandhar in Punjab, Bareilly in Uttar Pradesh, and the Delhi-Noida region. The searches targeted residences and business offices connected to persons and entities under probe in the case of Hampton Sky Realty Ltd, a company linked to Arora.
The action is the latest in a widening federal investigation that has been underway for nearly two months. The case pertains to alleged large-scale money laundering through fake GST purchases of mobile phones worth over Rs 100 crore, and the subsequent export of funds to round-trip illegitimate money from Dubai to India.
The agency has alleged that multiple fake GST purchase bills were obtained from non-existent firms based in Delhi to claim fake Input Tax Credit, GST refunds on export, and duty drawback benefits — causing substantial loss to the exchequer and resulting in wrongful personal enrichment.
ED raids in Sanjeev Arora case: Sanjeev Arora, who held the Finance and Excise and Taxation portfolios in the Bhagwant Mann Cabinet, was arrested by the ED on May 9. The ED alleged in court that Arora, in connivance with others, generated proceeds of crime worth over Rs 100 crore through purported exports and bogus purchases of mobile phones by forging documents and receiving GST refunds on exports.
The agency further alleged that during his remand, Arora misled the investigation by denying any knowledge of the individuals or entities from whom Hampton Sky Realty Limited purchased mobile phones. He moved a bail application before a special PMLA court and also challenged his arrest before the Punjab and Haryana High Court, contending it was arbitrary and in violation of constitutional safeguards.
ED raids in Sanjeev Arora case: What it alleged
According to ED’s remand application, Arora was the Chairman and Managing Director of Hampton Sky Realty Limited when the alleged bogus mobile phone exports were made. His son Kavya Arora, the current Managing Director of the company, told investigators that his father managed the export operations, which stopped in 2024 due to lack of profits. The phones were sourced locally in India and exported to Middle East countries from 2022.
The company has a long history of controversy around Arora’s dual role as a businessman and public office holder. Earlier, Congress leaders Pargat Singh and Bharat Bhushan Ashu had sought Arora’s removal as minister, alleging conflict of interest since he continued to serve as Managing Director of Hampton Sky Realty Limited even after assuming ministerial charge. Arora resigned as MD only after a public interest litigation citing conflict of interest was filed in the Punjab and Haryana High Court.
AAP Cries Political Vendetta, Invokes Hindu Traders
ED raids in Sanjeev Arora case: The fresh searches drew sharp political reactions from Aam Aadmi Party leadership, who framed the action as a broader pattern of harassment of Punjab’s trading community rather than engagement with the specific case against their minister.
AAP national convenor Arvind Kejriwal, in a post on X, alleged that the “ED Party” — his term for the BJP — is targeting small Hindu traders in Punjab. “ED Party today again conducted ED raids on Punjab’s Hindu businessmen. ED Party is troubling Punjab’s small Hindu traders,” he wrote, calling on traders not to panic and assuring them that the Punjab government stands with them.
Chief Minister Bhagwant Mann echoed the framing. “Hindu-Sikh brotherhood in Punjab is very strong. The politics of hate will not work in Punjab,” Mann said, condemning what he described as the misuse of central agencies to create political pressure.
The “ED Party” label AAP is using is not new. After AAP swept the Punjab municipal polls last week, Kejriwal credited the win to voter backlash against the raids, saying the ED Party had been “completely wiped out from urban areas” and that the manner in which traders — particularly Hindu traders — were harassed by the ED had backfired on the BJP.
BJP Hits Back
ED raids in Sanjeev Arora case: BJP national general secretary Tarun Chugh alleged that the ED had directly named a senior AAP leader from Punjab in the real estate case, and accused the ruling party of patronising “fake land documents, dubious CLU certificates, and encroachment.” He said the case was not merely about builders but an exposure of land loot under the AAP government.
The BJP has also challenged the AAP’s framing, arguing that the raids relate to an active criminal investigation involving an AAP Cabinet minister and a company with alleged proceeds of crime of over Rs 100 crore — not a sweep against small traders.
Background
Sanjeev Arora is a Ludhiana-based industrialist and politician who won the Ludhiana West bypoll in June 2025 and was inducted into the Mann Cabinet shortly after. He held the Finance, Planning, and Excise and Taxation portfolios. Hampton Sky Realty Ltd, earlier known as Ritesh Properties and Industries Ltd, is a realty and export firm he founded and led for over three decades before being compelled to step down as MD following the HC petition.
Further investigation in the money laundering case is underway.
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