ED raids Delhi-NCR, Ludhiana, Jalandhar in ₹100 crore GST fraud case tied to Punjab Minister Arora
Synopsis
The ED has widened its money laundering probe into jailed Punjab Industries Minister Sanjeev Arora, raiding Delhi-NCR, Ludhiana, and Jalandhar in a ₹100 crore GST fraud case tied to mobile phone exports. With a sitting cabinet minister in judicial custody and his firm denying all charges, the case is shaping up as one of the most significant PMLA actions against a serving Punjab minister in recent memory.
Key Takeaways
The ED conducted fresh searches on 9 June in Delhi-NCR , Ludhiana , and Jalandhar in a ₹100 crore GST fraud case.
Punjab Industries Minister Sanjeev Arora was arrested on 9 May 2025 under the PMLA, 2002 and remains in judicial custody.
Raids also targeted Municipal Corporation contractor Amit Bajaj and his brother Inderjit Bajaj in Jalandhar.
Arora has challenged his arrest in the Punjab and Haryana High Court , calling it 'arbitrary' and unconstitutional.
Hampton Sky Realty Ltd has denied all allegations, calling the company a 'victim of alleged supplier-side fraud.' Arora had previously faced ED raids in 2024 over a separate land conversion case when he was a Rajya Sabha MP .
The Enforcement Directorate (ED) on Tuesday, 9 June conducted a fresh round of searches across Delhi-NCR, Ludhiana, and Jalandhar in a money laundering investigation linked to jailed Punjab Cabinet Minister Sanjeev Arora and an alleged ₹100 crore GST fraud tied to mobile phone sales. The raids target premises connected to Arora's firm Hampton Sky Realty as well as associates in the National Capital Region and Punjab.
Who Was Raided and Where
According to official sources, searches were carried out simultaneously in Delhi-Noida (NCR) and Punjab's Ludhiana and Jalandhar. Separately, the ED also raided the premises of Municipal Corporation contractor Amit Bajaj in Jalandhar. Amit Bajaj and his elder brother Inderjit Bajaj are described as major contractors for municipal corporations and government departments in Punjab and other states, including Gujarat.
Arora's Arrest and Legal Challenge
Industries Minister Sanjeev Arora was arrested by the ED from his official residence in Chandigarh on 9 May 2025 under the Prevention of Money Laundering Act (PMLA), 2002. He has since been in judicial custody. Following his arrest, Arora moved the Punjab and Haryana High Court, contending that his detention was 'arbitrary, mechanical, without jurisdiction, and in violation of the mandatory safeguards guaranteed under Articles 14, 21 and 22 of the Constitution of India.' He sought immediate release from what he described as 'illegal and unconstitutional custody' and asked the court to stay the arrest and set aside consequential remand orders.
A Pattern of ED Scrutiny
Tuesday's searches are not the first time Arora has faced the agency's attention. The initial round of raids was conducted on 9 May at his premises in Chandigarh and Delhi-NCR. Notably, as far back as 2024, Arora — then a Rajya Sabha MP and legislator from Ludhiana (West) — had faced ED raids in a separate money laundering case related to the alleged conversion of industrial land for residential projects. The current investigation marks a fresh and more serious escalation, culminating in his arrest.
What Hampton Sky Realty Has Said
Hours after Arora's arrest last month, Hampton Sky Realty Ltd (formerly Ritesh Properties and Industries) denied all allegations, asserting full compliance with applicable laws in its mobile-phone export operations. The company stated it entered the mobile-phone export business in May 2023, describing it as a government-thrust area under the 'Make in India' and Production-Linked Incentive (PLI) schemes. The firm categorically rejected claims of 'round-tripping' or 'bogus exports', stating that 'nothing has been retained offshore, kept in any concealed account or routed back to any individual or entity.' It further claimed to be 'the victim of the alleged supplier-side fraud.'
What Comes Next
The ED's fresh raids suggest the investigation is widening beyond Arora himself to include contractors and associates with links to government procurement. The outcome of Arora's petition before the Punjab and Haryana High Court will be closely watched, as it could set a precedent on the legality of the arrest. Further arrests or attachment of assets under the PMLA cannot be ruled out as the probe deepens.
Point of View
Keeping pressure on him. The case also raises uncomfortable questions for the AAP government in Punjab, which has positioned itself on an anti-corruption platform. A sitting cabinet minister in PMLA custody is a political liability that the party cannot easily compartmentalise, and the widening contractor angle may draw scrutiny to government procurement processes in the state.
NationPress
3 Aug 2026
Frequently Asked Questions
Why was Punjab Minister Sanjeev Arora arrested by the ED?
Sanjeev Arora was arrested by the Enforcement Directorate on 9 May 2025 under the Prevention of Money Laundering Act, 2002, in connection with an alleged ₹100 crore GST fraud linked to mobile phone sales through his firm Hampton Sky Realty. He remains in judicial custody.
What is Hampton Sky Realty and what has it said about the case?
Hampton Sky Realty Ltd, formerly known as Ritesh Properties and Industries, is a firm associated with Arora. The company has denied all allegations, stating it entered the mobile-phone export business in May 2023 under government-backed PLI and Make in India schemes, and has called itself a 'victim of the alleged supplier-side fraud.'
Where did the ED conduct its latest searches on 9 June?
The ED conducted simultaneous searches in Delhi-Noida (NCR), Ludhiana, and Jalandhar. Raids also covered the premises of Municipal Corporation contractor Amit Bajaj in Jalandhar, who along with his brother Inderjit Bajaj is a major contractor for government departments in Punjab and Gujarat.
How has Arora challenged his arrest?
Arora moved the Punjab and Haryana High Court, arguing his arrest was 'arbitrary, mechanical, without jurisdiction' and violated Articles 14, 21, and 22 of the Constitution. He has sought immediate release and asked the court to stay the arrest and set aside remand orders.
Has Arora faced ED action before this case?
Yes. In 2024, when Arora was a Rajya Sabha MP and legislator from Ludhiana (West), the ED had raided his premises in a separate money laundering case related to the alleged conversion of industrial land for residential projects. The current GST fraud investigation is a distinct and more recent case.
