Gurugram: Punjab Industries Minister Sanjeev Arora has been sent to seven-day Enforcement Directorate custody in connection with a money laundering probe linked to an alleged GST fraud case involving fake invoices and mobile phone exports.

A special court in Gurugram has sent Sanjeev Arora to seven-day custody of the Enforcement Directorate in connection with a money laundering investigation.

Arora was arrested by the ED on Saturday evening from his official residence in Chandigarh following searches linked to an alleged GST fraud case.

The minister was later taken to Gurugram by road and produced before a special Prevention of Money Laundering Act court.

The ED had sought 10 days of custody, but the court granted seven days.

Probe linked to alleged GST fraud

According to the ED, the investigation is connected to alleged fake GST transactions involving mobile phones worth more than Rs 100 crore.

The agency claimed that fake purchase invoices were generated using non-existent firms based in Delhi to fraudulently claim Input Tax Credit (ITC).

Investigators also alleged that the exported goods were part of a suspected “round-tripping” operation intended to move illegitimate funds from Dubai back into India.

The case is being investigated under the provisions of the Prevention of Money Laundering Act (PMLA).

The ED also carried out searches at premises linked to Hampton Sky Realty Ltd, a company reportedly associated with Arora, in Gurugram.

The company later issued a statement saying it had faith in the legal system and was cooperating fully with authorities during the investigation.

Defence calls case politically motivated

Arora’s lawyer told reporters that the ED registered the case only recently and claimed the arrest was politically motivated.

The defence alleged that central agencies were being used selectively against opposition leaders.

However, the ED has not publicly responded to the allegation of political targeting.

Bhagwant Mann and Arvind Kejriwal criticised the ED action and accused the BJP-led Centre of using investigative agencies to pressure opposition parties.

The BJP rejected the allegations and claimed the Aam Aadmi Party leadership was reacting out of fear because of the ongoing investigation.

The case has now triggered a fresh political confrontation between the ruling AAP in Punjab and the BJP at the national level.
(With PTI inputs)