AAP Minister of Industries Sanjeev Arora Arrested From Chandigarh Home After Multi-State ED Raids

The Aam Aadmi Party (AAP) in Punjab is reeling from a major political blow. On Saturday, the Enforce

ment Directorate (ED) arrested Sanjeev Arora, the state’s Minister for Industries and Power, from his residence in Chandigarh. This development marks the first time a sitting minister in the Bhagwant Mann-led government has been taken into custody by a central probe agency.

The arrest follows a high-stakes day of searches across more than 12 locations in Punjab, Haryana, and Chandigarh. Investigators targeted Arora's home, the offices of Hampton Sky Realty Limited, and several of his associates. Notably, this is the third time within a year, and the second time this month, that the ED has raided the Ludhiana-based industrialist-turned-politician.

Inside the ₹157-Crore Case Against Sanjeev Arora

The investigation centers on an alleged ₹157-crore fraud involving Goods and Services Tax (GST) and export irregularities. According to agency officials, the scheme used fake invoices generated by "paper firms" in the Delhi-NCR region to claim fraudulent input tax credits and export refunds for mobile phone purchases that never actually happened.

The ED alleges that approximately ₹102.5 crore of these funds was laundered through two shell companies based in the UAE. Before the arrest, the agency had already moved to provisionally attach immovable assets, demat accounts, and bank holdings linked to Arora and Hampton Sky Realty.

The Focus Shifts to Aman Arora

The timing of the arrest is particularly sensitive. Just 48 hours earlier, the ED named Punjab AAP President and Cabinet Minister Aman Arora in a separate money-laundering investigation. This case involves two Mohali real estate firms, Suntec City and Altus Space Builders.

During recent raids related to this probe, social media was flooded with videos appearing to show bundles of ₹500 notes being thrown from the ninth floor of a high-rise building in Mohali. Investigators have alleged that builder Gaurav Dhir, described as a close associate of a "high-ranking AAP leader," used middlemen to secure "political patronage."

Aman Arora has vehemently denied the allegations. Speaking at a press conference in Chandigarh, he dared the agency to conduct a "forensic examination" of his phone and pointed out inconsistencies in the ED’s official statements.

"If any wrong is proved against me in any probe, I will leave politics," Arora declared.

Bhagwant Mann Hits Back: "A Strategy to Destabilise"

Chief Minister Bhagwant Mann has framed these legal actions as a calculated political move by the BJP to weaken his administration. Speaking from Sangrur, Mann argued that the central agencies are being used as tools for political defection rather than justice.

“The BJP's motive is not to recover black money but to send a message that joining their party ensures immunity,” Mann stated.

To support his claim, Mann pointed to the recent mass defection of seven AAP Rajya Sabha MPs to the BJP on April 24. He specifically highlighted the case of MP Ashok Mittal, alleging that ED pressure against Mittal vanished the moment he switched sides.

The defection of leaders like Raghav Chadha, Sandeep Pathak, and Harbhajan Singh has already slashed AAP’s strength in the Upper House from ten members down to just three.

A Powerful Figure in the Mann Cabinet

Sanjeev Arora’s rise in the AAP was swift. A 60-year-old textile and real estate mogul, he joined the Rajya Sabha in 2022 before resigning in July 2025 to contest and win the Ludhiana West assembly bypoll.

Before his arrest, Arora was arguably the most influential figure in the cabinet after the Chief Minister. He managed three heavyweight portfolios: Industries and Commerce, Power, and Local Bodies. His detention creates a significant vacuum in the state's economic leadership at a time when the government is already fighting a fierce political battle for survival.

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