Chandigarh: The Enforcement Directorate (ED) has arrested Punjab Industries Minister and Aam Aadmi Party (AAP) MLA Sanjeev Arora in connection with an alleged Rs 157.12-crore fraud linked to fake GST transactions and money laundering. Officials said he was being taken to Delhi for further investigation.
According to the report, Arora is also a director of Hampton Sky Realty Limited, based in Udyog Vihar, Gurugram. The company is alleged to have shown purchases of mobile phones worth over Rs 100 crore from a Delhi-headquartered firm.
Investigators suspect the transactions were routed through a non-existent entity to claim irregular input tax credit. The alleged fake billing and fund movement were also used to seek GST refunds linked to export credits and customs duty deductions.
The probe further found that the proceeds were allegedly sent to Dubai in the UAE and later brought back to India to legitimise the funds. After the fraud amount was confirmed, the case was transferred to the ED, which registered a case in April under the Prevention of Money Laundering Act and the Foreign Exchange Management Act.
The ED had conducted searches last month at five locations linked to Arora and the company, and properties were provisionally attached. Fresh searches were carried out at four locations, including his Chandigarh residence, his official accommodation, and premises linked to associates in the Delhi-NCR region; Arora was arrested during the Chandigarh search, with officials citing lack of cooperation.
