Punjab Minister Sanjeev Arora sent to 7-day ED custody in Rs 100 crore GST fraud probe
Arora's lawyer says an application was filed seeking a 10-day remand, but the court granted seven days
A Gurugram sessions court late on Saturday night sent Punjab Cabinet Minister Sanjeev Arora to seven days of Enforcement Directorate (ED) custody in connection with a Rs 100 crore money laundering case linked to alleged fraudulent GST transactions.
The ED had sought a 10-day remand after arresting the Aam Aadmi Party (AAP) leader following day-long raids at multiple locations linked to him and his business entities in Delhi, Gurugram and Chandigarh under the Prevention of Money Laundering Act (PMLA).
According to ED officials, the probe revolves around alleged fake GST purchases of mobile phones worth more than Rs 100 crore. Investigators claim fraudulent purchase invoices were generated through non-existent firms based in Delhi to avail undue input tax credit (ITC), export-linked GST refunds and duty drawback benefits.
The agency also searched the premises of Hampton Sky Realty Limited, which is under the scanner in the case. ED officials alleged that the transactions resulted in substantial losses to the exchequer and were used to route illegitimate funds.
Arora's lawyer, Arjun said, "An application was filed seeking a 10-day remand, but the court granted seven days. The ED did not conduct a proper investigation. The agency registered the case on May 5 and arrested him on the morning of May 9. This is politically motivated and orchestrated.”
He further alleged, “We have not received a copy of the FIR. The ED filed this FIR during the search order.”
The court has set May 16 for Arora’s next appearance in the Gurugram court.
