ED nabs Punjab Industries Minister Sanjeev Arora in fresh PMLA case; AAP under fire

The Enforcement Directorate on Saturday (May 9, 2026) arrested Sanjeev Arora, the Punjab Industries Minister in the Aam Aadmi Party (AAP) Government in Punjab, in an alleged money-laundering case involving him and associated entities, triggering a political slugfest as rival parties traded barbs.

Mr. Arora was taken into custody after the Enforcement Directorate raided the Minister’s and his associates’ premises on suspicion of large-scale money laundering, said an official. The searches are being conducted in a case registered under the provisions of Prevention of Money Laundering Act (PMLA), 2002.

The ED conducted the searches at five locations across Delhi, Gurugram and Chandigarh, including the official residence of Mr. Arora. The raids were also conducted at office premises associated with Hampton Sky Realty Limited and other linked entities.

According to an official, the ED had allegedly detected a case of large-scale money laundering done by Mr. Arora through his company in fake Goods and Services Tax (GST) purchases of mobile phones of more than ₹100 crores and subsequent exports to round trip illegitimate funds from Dubai to India.

In April this year, the ED raided Mr. Arora and his associates under the Foreign Exchange Management Act (FEMA). Mr. Arora was also raided by the ED in 2024 in a money-laundering case linked to the alleged misuse of industrial land for residential projects. Mr. Arora was then a Rajya Sabha MP.

Reacting to the raids, Punjab Chief Minister Bhagwant Mann said, “The ED had raided Sanjeev Arora’s residence three times within a year and twice within a month without recovering anything.” Mr. Mann questioned why such raids were being carried out only in States where the BJP was not in power.

The opposition parties, however, trained their guns on the AAP, launching a scathing attack on the State Government over its failure to deliver transparent and honest governance.

Shiromani Akali Dal (SAD) leader Bikram Singh Majithia alleged that there was a land, power, housing and property developer nexus operating under political patronage in Punjab, and a time-bound probe should be undertaken into the matter.

“The arrest of Sanjeev Arora had exposed the seriousness of the financial irregularities network functioning in the State. Every individual linked to alleged GST fraud, illegal Dubai money transfers and suspicious land dealings must face strict investigation,” he said.

Punjab BJP president Sunil Jakhar accused the Punjab Government of shielding corruption and defending individuals involved in alleged land-related scams currently under investigation by the ED.

“The ED raids on ministers are not aimed at targeting private individuals but are actions against those accused of grabbing farmers’ land through fraudulent means. He claimed the investigations are focused on cases where land acquired from farmers at extremely low prices was later used to generate massive profits through illegal real-estate activities,” he said.

Taking a dig at the Chief Minister, Mr. Jakhar said that if the government were truly honest, it would have acted against the alleged corruption itself instead of defending those involved. “After the slogan of ‘Sabka Saath, Sabka Vikas,’ the time for ‘Sabka Hisaab’ (accountability for all) has now arrived,” he added.

Leader of Opposition in the Punjab Assembly, Congress party’s Partap Singh Bajwa, said that Mr. Arora’s arrest has once again exposed the serious corruption allegations surrounding the AAP.

“This is not an isolated case, as several senior AAP leaders and individuals close to the Punjab Government have repeatedly come under the scanner of investigative agencies. The people of Punjab were promised honest and transparent governance, but instead, they were allegedly looted by leaders of the ruling AAP party. Every time corruption allegations emerge, AAP leaders conveniently hide behind the excuse of ‘political vendetta’ instead of answering direct questions,” he said.