Chandigarh: The Enforcement Directorate (ED) on Saturday launched fresh searches at five locations across Chandigarh, Gurugram, and the Delhi-NCR region linked to Punjab Industry Minister Sanjeev Arora. The raids, conducted under the criminal sections of the Prevention of Money Laundering Act (PMLA), 2002, target the official residence of the Aam Aadmi Party (AAP) MLA in Chandigarh and premises associated with his business entities. This action marks the third time in a year that the federal agency has knocked on the minister’s door.

The 62-year-old legislator from Ludhiana (West) was previously searched by the ED in April under civil provisions of the Foreign Exchange Management Act (FEMA). Furthermore, in 2024, during his tenure as a Rajya Sabha MP, Arora faced raids in connection with a separate money laundering case involving the alleged conversion of industrial land for residential use. Following the April searches, Arora stated he would fully cooperate with the probe, expressing confidence that "the truth will prevail".

Allegations of ₹100 Crore GST Racket and Round-Tripping

At the heart of the current PMLA investigation is an alleged ₹100 crore money laundering operation involving fraudulent Goods and Services Tax (GST) transactions. Officials state the probe focuses on the generation of fake purchase bills for mobile phones worth over ₹100 crore from non-existent firms based in Delhi. These "paper" transactions were allegedly used to claim undue Input Tax Credit (ITC), wrongful GST refunds on export credits, and duty drawback benefits.

The agency also suspects a sophisticated "round-tripping" mechanism where funds were allegedly routed through exports to Dubai and brought back to India to legitimise illicit gains, causing a massive loss to the exchequer. One of the premises searched includes an office belonging to Hampton Sky Realty Limited. Shiromani Akali Dal leader Bikram Singh Majithia, commenting on the development, alleged on X that "fake GST bills from non-existing Delhi firms were allegedly used to claim fraudulent ITC... Probe points towards massive loss to the exchequer and alleged personal enrichment".

‘Aurangzeb Tactics’: AAP Leaders Allege Central Coercion

The raids have triggered a fierce political backlash from the AAP leadership, who have characterised the agency’s actions as a "political witch hunt" ahead of upcoming elections. Chief Minister Bhagwant Mann accused the BJP-led Centre of using the ED, CBI, and Income Tax Department as "four to five weapons" to meet political ends. Addressing a press conference in Sangrur, Mann claimed, "By conducting ED raids, their purpose is not to find any black money... their purpose is to convey to the person at whose premises the raid is carried out to join the BJP".

Mann further cited the case of Rajya Sabha MP Ashok Mittal, whose premises were raided last month. "A few days back raids continued for two days on Ashok Mittal's premises. But after he joined the BJP... the raids ended and Mittal was honoured days later and granted 'Y' category security," Mann alleged. He remained defiant, stating on X, "Today, once again, the BJP’s ED has come to Sanjeev Arora’s house... Yet, they haven’t found anything. I want to tell Modi-ji that Punjab is the land of the Gurus, which even Aurangzeb could not subdue. This is the land of Bhagat Singh, who never bowed before the British, so Punjab will never bow before Modi’s tactics".

AAP convenor Arvind Kejriwal joined the condemnation, alleging that Punjab has been "ill-treated" and "coerced" by the Prime Minister. Kejriwal compared the current situation to historical struggles, stating, "Mughal emperor Aurangzeb also tortured Sikh Gurus, but they saved people from him. Like Aurangzeb, Modi ji has dishonestly occupied various parts of the country and now reached Punjab". He further alleged that the Centre has attempted to weaken Punjab's water rights and stopped rural development funds. Punjab Finance Minister Harpal Singh Cheema added that it is the BJP’s design to target opponents months before polls, asserting, "No matter how many attacks the BJP may carry out, we will repel all their attacks".