GURUGRAM: A special PMLA court in Gurugram has remanded Punjab Industries Minister Sanjeev Arora to Enforcement Directorate (ED) custody for one week in connection with an alleged Rs 100-crore GST fraud-related money laundering case. The court noted that the allegations are “very serious” and the ED needs to investigate further.
The lawyer representing Arora, a senior member of the Aam Aadmi Party (AAP) in Punjab, claimed that a “false and frivolous” case was fabricated against him, asserting that “no prima facie evidence” was gathered prior to his arrest.
Arora, aged 62, was taken into custody by the ED at his official residence in Chandigarh after agency raids on Saturday evening.
The ED also conducted searches at the offices of Hampton Sky Realty Ltd (HSRL), a Gurugram-based company where Arora was a director and shareholder. The company denied any wrongdoing, stating that it trusts the legal process and is fully cooperating with authorities.
After being transported to Gurugram from Chandigarh overnight, Arora appeared before Sessions-cum-special PMLA court Judge Narender Sura.
The ED claims its investigation involves HSRL and Arora’s family members, alleging that they were the “beneficial owners and controllers” of the company. During the 2023-24 financial year, HSRL reportedly sold mobile phones worth Rs 157.12 crore to various local and international entities, with Arora serving as its CMD responsible for business operations linked to alleged illicit transactions.
The agency accused HSRL of using a network of shell companies to produce “fake” invoices to show fraudulent sales and exports, asserting Arora’s central role in the money laundering scheme involving bogus billing, fraud, and shell entities.
Judge Sura mentioned, “Given the gravity of the allegations, the ED must investigate how the accused generated proceeds of crime,” thus justifying the need for custodial interrogation.
The court deemed it appropriate for Arora to be remanded to ED custody for seven days, while the agency had requested a ten-day remand.
The court’s order emphasized that the ED is obligated to track the money trail and uncover the methods employed by the accused to generate illicit funds.
The case stems from an FIR filed with Gurugram Police on April 14, based on information provided by the ED during prior investigations under the FEMA.
The court highlighted that Arora, as chairman and managing director of HSRL, allegedly exported mobile phones using forged documents, wrongfully claiming GST refunds based on fictitious purchases, leading to significant losses for the government.
Arora’s lawyer maintained in court there was “no material on record” linking him to the alleged offenses.
The ED stated that Arora “committed” money laundering through collusion with others, generating Rs 102.5 crore in illicit gains via purported exports and bogus dealings, subsequently causing losses to the government while benefiting personally.
The agency referred to a “daily wage laborer” as the supposed proprietor of a company supplying mobile phones to HSRL, claiming it merely provided “accommodation entry” for illicit funds.
After the proceedings, Arora’s lawyer told reporters that this case is “politically motivated.” HSRL asserted every phone export was validated by multiple independent authorities, denying any misconduct.
HSRL added that where the GST authorities raised issues regarding input tax credits, any disputed amount has already been deposited and is being contested before the GST appellate authority.
The ED further alleged that HSRL acquired multiple fake GST invoices from “non-existing” firms in Delhi to wrongly claim Input Tax Credit (ITC).
Punjab Chief Minister Bhagwant Mann and AAP leader Arvind Kejriwal criticized the ED’s actions, accusing the Central government of using agencies like the ED and CBI as “weapons” to intimidate opposition leaders into aligning with the BJP.
