Exports – ED Conducts Fresh Searches in Alleged ₹157 Crore Export Fraud Case
Exports – The Enforcement Directorate (ED) on Saturday carried out a fresh round of searches linked to Punjab Industries Minister Sanjeev Arora in an ongoing investigation related to alleged foreign exchange irregularities and suspected bogus export transactions valued at ₹157.12 crore.
The agency searched multiple properties across Delhi, Gurugram, and Chandigarh, including Arora’s official residence in Chandigarh and offices connected to Hampton Sky Realty Ltd, a real estate company associated with him. Officials said the operation was conducted under provisions of the Prevention of Money Laundering Act (PMLA).
Allegations Linked to Fake GST Transactions
Investigators suspect that funds were routed through fraudulent business transactions involving mobile phone purchases and exports. According to officials familiar with the probe, fake GST invoices worth more than ₹100 crore were allegedly created using non-existent firms based in Delhi. These invoices were reportedly used to claim fraudulent Input Tax Credit (ITC), export refunds, and duty drawback benefits.
The ED is examining whether these transactions were used to move funds abroad and later channel them back into India through export-related activities involving companies in Dubai. Authorities believe the process may have caused significant losses to government revenue.
UAE Firms Under Scanner
Officials involved in the investigation stated that out of the total export value under scrutiny, transactions worth ₹102.50 crore were allegedly routed through two UAE-based firms — Fortbel Telecom FZCO and Dragon Global FZCO. Investigators are now reviewing the relationship between these firms and entities operating in India.
Sources further claimed that Fortbel Telecom FZCO may have links with Fortbell Gadgets Private Limited, which is reportedly associated with Hemant Sood and Chander Sekhar. The agency is analysing financial records and ownership structures as part of the wider investigation.
Assets and Bank Accounts Frozen
In a related development, the ED has provisionally attached several bank accounts, immovable assets, demat accounts, and mutual fund investments linked to Hampton Sky Realty Limited and Kavya Arora. Officials said the attachment orders were issued to protect revenue interests and support the ongoing probe into alleged foreign exchange violations.
The attachment action reportedly remains valid for 180 days under provisions of the Foreign Exchange Management Act (FEMA) and the Income Tax Act. Earlier in April, the ED had also conducted search and seizure operations at premises connected to Hampton Sky Realty Limited in Gurugram’s Udyog Vihar area and at locations associated with several individuals linked to the case.
Political Reactions Intensify
The searches triggered strong political reactions from leaders of the Aam Aadmi Party (AAP). Punjab Chief Minister Bhagwant Mann criticised the ED action through a post on social media, accusing the BJP-led central government of targeting opposition leaders in Punjab.
AAP national convener Arvind Kejriwal also questioned the timing of the raids, alleging that central agencies were being used for political pressure. He referred to recent enforcement actions involving other political figures and claimed the investigations were politically motivated.
Earlier Investigations Against Arora
This is not the first time Sanjeev Arora has come under the ED scanner. Earlier in April, the agency had searched premises connected to him under FEMA provisions. In response, Arora had publicly stated that he would cooperate fully with investigators and expressed confidence that facts would eventually emerge clearly.
The Ludhiana West MLA had also faced ED action in 2024 in connection with a separate money laundering investigation related to alleged misuse of industrial land for residential development projects.
Officials said the investigation into the alleged export and foreign exchange violations is continuing, with financial transactions involving associated companies and individuals currently under detailed scrutiny.