Punjab Minister Sanjeev Arora Sent To 7-Day ED Custody
HSRL sold mobile phones worth Rs 157.12 crore during 2023–24 and allegedly used a network of shell entities to generate fake purchase invoices and show bogus sales and exports: ED
GURUGRAM: A special PMLA court in Gurugram on Sunday remanded Punjab industries minister Sanjeev Arora to Enforcement Directorate (ED) custody for seven days in a GST fraud-linked money laundering case, observing that the allegations against him are “very serious”.
The ED had sought 10-day custody, stating it needed to interrogate Arora to trace the money trail and establish the role of the accused and associated persons. Allowing the plea, Judge Narender Sura said custodial interrogation was necessary to understand how the alleged proceeds of crime were generated and circulated. Arora, 62, was arrested by the ED on Saturday evening from his official residence in Chandigarh following searches. He was produced before the Sessions-cum-special PMLA court in Gurugram after being brought by road.
The agency alleged that the case pertains to a Gurugram-based firm, Hampton Sky Realty Ltd (HSRL), its linked entities and Arora, whom it described as the “beneficial owner and controller” of the company along with family members.
According to the ED, HSRL sold mobile phones worth Rs 157.12 crore during 2023–24 and allegedly used a network of shell entities to generate fake purchase invoices and show bogus sales and exports. The agency claimed Arora was the “key person” in the alleged money laundering involving bogus billing, fraud and forgery.
The court noted that the ED “has a good and sufficient reason” to seek custody for interrogation and said the objective of tracing the money trail and identifying the modus operandi could be achieved through custodial questioning.
The case stems from a Gurugram Police FIR registered on April 14 based on inputs from the ED following earlier searches under FEMA. The court recorded that exports were allegedly shown using forged documents to claim GST refunds, with funds transferred to multiple shell entities.
The ED told the court that proceeds of crime amounting to Rs 102.5 crore were generated through purported exports and bogus purchases, causing loss to the exchequer.
Arora’s counsel opposed the remand, stating there was “no material on record” to link him to the alleged offence and described the case as “false and frivolous”. The defence later termed the action “politically motivated”.
HSRL, in a statement, denied wrongdoing and said it was cooperating with authorities.