Finance – ED Conducts New Raids in Punjab Minister Sanjeev Arora Case
Finance – The Enforcement Directorate carried out fresh searches on Saturday at multiple properties connected to Punjab Industries Minister Sanjeev Arora as part of an ongoing probe into alleged foreign exchange irregularities and suspected bogus export transactions worth more than Rs 157 crore.
The agency conducted operations across Delhi, Gurugram and Chandigarh, targeting five locations linked to the Aam Aadmi Party leader. Officials searched Arora’s official residence in Chandigarh along with premises associated with his real estate company, Hampton Sky Realty Ltd, based in Gurugram.
Investigation Focuses on Alleged Export Irregularities
According to officials familiar with the investigation, the case relates to suspected money laundering activities involving fabricated GST purchases and questionable export transactions connected to mobile phones. Investigators believe fake invoices may have been used to show purchases exceeding Rs 100 crore, allegedly helping generate unlawful financial benefits through export-linked incentives.
The Enforcement Directorate is examining whether these transactions were used to circulate funds between Dubai and India through a layered financial structure. Authorities reportedly identified several GST invoices linked to firms that allegedly did not exist, raising concerns about fraudulent claims of Input Tax Credit, export refunds and duty drawback benefits.
Earlier FEMA Action Linked to Same Probe
This is not the first action taken against entities connected to Arora. In April, the agency had already conducted searches under provisions of the Foreign Exchange Management Act. Following those searches, Arora publicly stated that he would cooperate fully with investigators and expressed confidence that the facts would emerge through the legal process.
The Ludhiana West MLA had also faced investigation in 2024 when he was serving as a Rajya Sabha member. That earlier case involved allegations related to the misuse of industrial land for residential development projects.
Political Reactions Intensify in Punjab
The latest raids triggered strong political responses from senior AAP leaders. Punjab Chief Minister Bhagwant Mann criticised the Enforcement Directorate’s action and accused the central government of using investigative agencies for political purposes. In a social media statement, he said Punjab would resist pressure tactics and defend democratic values.
AAP national convener Arvind Kejriwal also reacted sharply, alleging that ED operations in Punjab had increased after the conclusion of elections in West Bengal. He claimed recent raids were politically motivated and linked them to attempts to pressure opposition leaders.
Assets and Financial Accounts Under Scrutiny
Sources connected to the investigation said authorities have provisionally attached several bank accounts and immovable properties linked to Hampton Sky Realty Ltd. Investigators have also frozen demat accounts and mutual fund investments associated with Kavya Arora as part of the ongoing inquiry.
Officials suspect the company generated fabricated purchase records through a network of shell entities in order to present inflated sales and export figures. The probe is examining whether these transactions were designed to obtain financial gains through false documentation and foreign exchange movement.
UAE-Based Firms Also Under Examination
Investigators are reportedly reviewing financial transactions involving two UAE-based companies, Fortbel Telecom FZCO and Dragon Global FZCO. Authorities believe a major portion of the export transactions under scrutiny passed through these entities.
Sources further indicated that Fortbel Telecom FZCO may have links to Fortbell Gadgets Private Limited, allegedly associated with individuals identified as Hemant Sood and Chander Sekhar. Enforcement officials are now tracing financial records and related transactions to determine the broader extent of the alleged violations.
Probe Continues Into Financial Trail
Officials stated that attachment orders were issued in April under FEMA provisions along with sections of the Income Tax Act. The assets are expected to remain frozen for 180 days while investigators continue gathering evidence and reviewing the money trail connected to the case.
The Enforcement Directorate is continuing to examine the role of associated firms and individuals as part of its broader investigation into suspected foreign exchange violations and alleged financial misconduct.