What’s Behind the ED Raids on Punjab Minister Sanjeev Arora? A Deep Dive into the Allegations

The Enforcement Directorate has launched fresh raids on Punjab's industries minister Sanjeev Arora, investigating allegations of money laundering linked to fraudulent GST transactions. The raids, which included Arora's residence and other locations, have sparked political controversy, with the Aam Aadmi Party claiming they are a politically motivated attack by the BJP government. As the investigation unfolds, questions arise about the implications for Punjab's political landscape ahead of upcoming elections. Read on to uncover the details of this high-profile case.

By Narendra Chaudhary May 9, 2026, 12:15 IST

Enforcement Directorate Targets Punjab Minister

In a significant development, the Enforcement Directorate (ED) executed new searches on Saturday targeting Sanjeev Arora, the Punjab industries minister, along with several individuals associated with him, as part of an inquiry into a recently initiated money laundering case, according to officials.

Among the five locations raided was Arora's official residence in Chandigarh.

The operation also extended to sites in Delhi and Gurugram, including a company named Hampton Sky Realty Ltd.

These searches were initiated following the registration of a new case under the criminal provisions of the Prevention of Money Laundering Act (PMLA), as stated by the officials.

Previously, in April, the ED had conducted raids on Arora and related entities under the civil regulations of the Foreign Exchange Management Act (FEMA).

At 62 years old, Arora serves as an MLA for the Aam Aadmi Party (AAP) representing the Ludhiana West constituency.

In response to the ED's actions, Punjab Chief Minister Bhagwant Mann expressed his views on social media, asserting that Punjab would not succumb to the tactics employed by the Modi administration.

He claimed that the unethical alliance between the ED and BJP would face its downfall starting from Punjab.

The current investigation under the PMLA is focused on alleged fraudulent GST transactions involving mobile phones exceeding Rs 100 crore, with claims of illicit funds being funneled from Dubai to India.

It is alleged that numerous fake GST invoices were procured from non-existent companies in Delhi to falsely claim input tax credits.

Following the April raids, Arora expressed his willingness to cooperate fully with the investigative agencies, confident that the truth would emerge.

The AAP has denounced the raids as a politically motivated attack orchestrated by the BJP government at the national level, especially with Punjab's elections approaching next year.

Arora is already under investigation for a previous money laundering case, where he was implicated in misusing industrial land for residential developments during his tenure as a Rajya Sabha MP.

In recent weeks, the ED has intensified its actions against individuals with political ties in Punjab, which is gearing up for elections in early 2027.

The agency has also conducted raids on Lovely Group's promoter and Rajya Sabha MP Ashok Kumar Mittal, who switched allegiance to the BJP along with six other AAP MPs following the raids.

Earlier this week, the ED targeted several builders and real estate firms in Punjab, as well as an alleged associate of an AAP official, making accusations against Punjab AAP president and cabinet minister Aman Arora, who has refuted the allegations, labeling the ED's claims as a fabricated story.