ED raids 14 locations linked to ex-Punjab minister Sunder Sham Arora in money laundering case
Synopsis
The ED has raided 14 locations tied to former Punjab Industries Minister Sunder Sham Arora, alleging he used his ministerial control over PSIEC to funnel high-value industrial plot benefits to private real estate firms — and took stakes in those firms through his son. At the centre is a ₹90.56 crore plot transfer where PSIEC's legally entitled dues were allegedly never paid.
Key Takeaways
The Enforcement Directorate (ED) searched 14 locations in Punjab and Chandigarh on 2–3 November 2026 under the PMLA, 2002 .
The probe targets former Punjab Industries and Commerce Minister Sunder Sham Arora , his son Parteek Arora , and associates.
Arora was arrested on 15 October 2022 at Zirakpur for allegedly offering a bribe of ₹1 crore , with ₹50 lakh paid in cash.
During his ministerial tenure ( March 2017 – September 2021 ), Arora allegedly favoured private players in PSIEC industrial plot transfers in exchange for real estate stakes in his son's name.
Industrial Plot A-32, Phase 8, Mohali was transferred to GRG Developers for ₹90.56 crore ; PSIEC's entitled 50% unearned increase was allegedly never fully paid.
Seized items include mobile phones, property documents, PSIEC records, digital devices, and frozen bank lockers .
The Enforcement Directorate (ED) conducted search operations at 14 locations across Punjab and Chandigarh on 2 and 3 November 2026 as part of a money laundering investigation targeting former Punjab Industries and Commerce Minister Sunder Sham Arora, his son Parteek Arora, and their associates. The searches were carried out by the ED's Jalandhar Zonal Office under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
What the Searches Uncovered
The operations resulted in the recovery and seizure of mobile phones, incriminating documents, property records, and documents relating to Punjab Small Industries and Export Corporation (PSIEC) plots, along with digital devices. Investigators also froze bank lockers as part of the action.
Premises searched include the residential property of Sunder Sham Arora in Hoshiarpur, Shivam Hospital in Hoshiarpur, and locations linked to SRG Builders and Promoters Private Limited, GRG Developers and Promoters LLP, Gulmohar Township India Private Limited, and their promoters, directors, and associates in Chandigarh and Mohali.
Background: The Bribery Arrest and Vigilance Case
The ED's investigation stems from a First Information Report (FIR) registered by the Punjab Vigilance Bureau under the Prevention of Corruption Act, 1988, alleging that Arora had amassed assets disproportionate to his known sources of income. According to the ED, Arora allegedly offered a bribe of ₹1 crore to a senior Vigilance Bureau officer to settle pending enquiries against him. He was reportedly arrested red-handed on 15 October 2022 at Zirakpur while handing over ₹50 lakh in cash as an advance payment.
PSIEC Plots and Alleged Ministerial Misconduct
The ED's investigation has revealed that Arora, during his tenure as Punjab Minister of Industries and Commerce from March 2017 to September 2021, exercised direct control over the functioning of PSIEC. He allegedly extended undue favours to private real estate players in the transfer of high-value PSIEC industrial plots, and in return, reportedly acquired stakes in real estate entities registered in the name of his son Parteek Arora.
Specifically, Industrial Plot No. A-32 at Phase 8, Mohali — originally allotted by PSIEC to JCT Electronics (now bankrupt) — was transferred to GRG Developers and Promoters LLP for ₹90.56 crore through an auction conducted by ARCIL in February 2020. According to the ED, although PSIEC was entitled to 50 per cent of the sale value as unearned increase, along with enhanced land cost and transfer fees under the lease deed, these dues were allegedly never fully paid.
The agency further noted that even after the tripartite agreement between PSIEC, ARCIL, and GRG was cancelled in August 2021, no steps were taken to cancel the lease deed or resume the plot. The ED stated that Arora, as the then minister, approved proposals for post-facto approvals regarding the calculation of unearned increase and enhanced fees, and was allegedly directly involved in the affairs of the plot. Bank records reviewed by investigators reportedly show that Arora also invested in the purchase of the said plot through his son Parteek.
What Comes Next
The seized documents, digital devices, and frozen bank lockers are expected to form part of a formal charge sheet or prosecution complaint under the PMLA. This is the latest enforcement action in what has been a lengthening trail of financial investigations connected to the previous Congress government in Punjab. The case is likely to intensify political scrutiny around PSIEC's functioning and the broader question of accountability for ministerial decisions over industrial land transfers.
Point of View
The allegedly unpaid unearned increase, and the post-facto approvals all point to a systemic failure where accountability mechanisms were either bypassed or neutered from within. What is striking is the timeline: the tripartite agreement was cancelled in August 2021, yet no corrective action followed until an enforcement agency intervened years later. That gap raises uncomfortable questions about institutional inertia — and whether the problem was confined to one minister or ran deeper through the bureaucratic chain.
NationPress
6 Nov 2026
Frequently Asked Questions
Why did the ED raid locations linked to Sunder Sham Arora?
The ED raided 14 locations in Punjab and Chandigarh as part of a money laundering investigation under the PMLA, 2002, against former Punjab Industries and Commerce Minister Sunder Sham Arora. The probe was triggered by an FIR filed by the Punjab Vigilance Bureau alleging disproportionate assets and a bribery attempt involving ₹1 crore.
What was recovered in the ED searches?
The searches yielded mobile phones, incriminating documents, property records, digital devices, and documents related to PSIEC industrial plots. Investigators also froze bank lockers at premises linked to Arora, his son Parteek, and several real estate entities.
What is Sunder Sham Arora accused of doing with PSIEC plots?
According to the ED, Arora allegedly used his ministerial control over PSIEC between March 2017 and September 2021 to extend undue favours to private real estate developers in high-value plot transfers, and in return received stakes in those real estate firms registered in his son Parteek Arora's name.
What is the significance of the Mohali plot in the ED investigation?
Industrial Plot A-32 at Phase 8 in Mohali — originally allotted to JCT Electronics — was transferred to GRG Developers and Promoters LLP for ₹90.56 crore via an ARCIL auction in February 2020. The ED alleges that PSIEC's legally entitled 50% share of unearned increase and other fees were never fully paid, and that Arora personally approved post-facto proposals related to the transaction.
When was Sunder Sham Arora arrested and on what charge?
Arora was arrested on 15 October 2022 at Zirakpur by the Punjab Vigilance Bureau, allegedly while handing over ₹50 lakh in cash as the first instalment of a ₹1 crore bribe to a senior Vigilance officer to settle pending enquiries against him. The ED's money laundering case is built on that underlying FIR.
