CHANDIGARH: Punjab minister Sanjeev Arora, 62, was arrested by Enforcement Directorate on Saturday in connection with a money laundering case, sending shockwaves through Aam Aadmi Party and triggering turmoil in an already charged political atmosphere less than a year ahead of assembly polls in Punjab.Arora is one of the most high-profile ministers in the Bhagwant Mann-led Punjab cabinet, holding charge of industries and commerce, power and local govt.Punjab chief minister Bhagwant Mann accused the BJP-led Center of “weaponising” central agencies to target opposition leaders, and said Punjab “would not bow to the politics of intimidation and vendetta”. Congress, BJP and Shiromani Akali Dal attacked the AAP government over corruption allegations.AAP chief Arvind Kejriwal accused BJP of using central agencies for political purposes alleging repeated ED action in Punjab was aimed at intimidating state leadership. Punjab BJP president Sunil Jakhar accused Mann’s government of shielding corruption. ED has been active in Punjab for well over a month, during which seven AAP Rajya Sabha MPs switched to BJP, including two who had been searched by the agency.
Sources said ED searched other addresses in Delhi, Gurgaon and Chandigarh, including the premises of Hampton Sky Realty Ltd, promoted by Arora’s family. The company issued a statement that it “reposes complete faith in its established facts, in the legal and constitutional framework of the country, and in the wisdom of the Hon’ble Judiciary”. Its statement said when the “supplier-side” fraud came to its knowledge, “the company itself approached the police as the complainant” by lodging an FIR (on May 17, 2025) at a Ludhiana police station and that the company itself was a “victim”. It added that there was no “current loss to the government exchequer” on account of its transactions. Arora’s arrest followed an ED search of his official residence in Sector 2, Chandigarh. This is the third time this year that Arora has faced ED action. It first raided Arora’s premises in connection with a money laundering probe involving alleged misuse of industrial land for residential projects in Ludhiana. At the time, he was a Rajya Sabha MP. AAP fielded him in the Ludhiana West bypoll in June 2025 to retain the seat following the death of MLA Gurpreet Bassi Gogi. Weeks ago the agency conducted searches under the Foreign Exchange Management Act, which led to provisional attachment of assets worth over Rs 157 crore linked to Arora and Hampton Sky. Sources said the latest probe involves a Rs 100 crore “fake” GST purchase of mobile phones and exports to “round-trip” alleged illegitimate funds from Dubai to India. Reacting to Arora’s arrest, CM Mann said, “BJP has a deep-seated hatred for Punjab … BJP’s polarization tactics won’t work here. ED and CBI are being used as weapons to intimidate leaders of rival parties to join BJP…” Leader of Opposition in the assembly Partap Singh Bajwa said Arora’s arrest has exposed serious corruption allegations against the ruling party in Punjab. He also questioned the BJP-led Union government and central agencies regarding the timing of these actions.
