During the court appearance, Sanjeev Arora appeared physically weak with a grown beard and became emotional after meeting his family members. He was seen embracing and consoling relatives outside the courtroom.
Punjab Minister and senior AAP leader Sanjeev Arora (Image: IANS)
Punjab Minister and senior AAP leader Sanjeev Arora was on Monday, May 18, sent to judicial custody till June 1 by a Gurugram court in connection with an alleged money laundering case being investigated by the Enforcement Directorate (ED). Arora, who was arrested by the ED from Chandigarh on May 9, was produced before the court after completion of his custodial remand.
During the court appearance, Arora appeared physically weak with a grown beard and became emotional after meeting his family members. He was seen embracing and consoling relatives outside the courtroom.
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The ED had initially secured seven days’ remand of the minister, which was later extended by two more days. Meanwhile, a petition challenging his arrest and remand also came up for hearing before the Punjab and Haryana High Court on Monday, where the ED is expected to file its response.
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The probe has now widened to include senior bureaucrats and businessmen allegedly linked to the case. The ED has summoned Punjab State Power Corporation Limited (PSPCL) Chairman-cum-Managing Director Basant Garg, PSPCL Director (Commercial) Harsharan Kaur Trehan, and GMADA Chief Administrator Sandeep Kumar in connection with documents related to real estate projects in New Chandigarh. GMADA officials have already appeared before the ED’s Jalandhar zonal office with records sought by investigators.
According to the ED, the investigation pertains to alleged financial irregularities linked to real estate projects and suspected routing of funds through shell companies. Raids were conducted on May 8 and 9 at multiple premises of builders and associates connected with the matter.
Investigators are also examining allegations that a company linked to Arora, Ritesh Properties and Industries Limited, received undue benefits in connection with the modification of electricity supply arrangements. The ED is probing whether rules were bypassed in the release of a bank guarantee worth nearly Rs 1.97 crore without submission of a revised guarantee, allegedly causing financial benefit to the company.
The agency has also summoned Ludhiana-based financier Hemant Sood and Jalandhar businessman Chandrashekhar Agrawal, who are believed to be close associates and business partners of Arora. The ED suspects their possible role in handling alleged benami assets, fund routing, and suspicious investments linked to the case.
Sources said GMADA official Sandeep Singh has also been questioned regarding records related to Change of Land Use (CLU) approvals, though no direct allegations against him have surfaced so far.
The case traces back to allegations between 2023 and 2024 that a company linked to Arora showed fake mobile sales worth Rs 157.12 crore and dubious export transactions of around Rs 102 crore to Dubai. The ED later initiated FEMA-related searches in April 2026 over suspected irregularities in export documents and foreign transactions.
On May 5, the agency registered a fresh money laundering case under the Prevention of Money Laundering Act (PMLA) after uncovering alleged misuse of GST input tax credit through shell companies based in Delhi. Subsequent raids were conducted across Chandigarh, Delhi, and Gurugram on May 9, following which Arora was arrested after prolonged questioning at his official residence in Chandigarh.
The arrest triggered a political confrontation in Punjab, with the ruling Aam Aadmi Party alleging political vendetta by the Centre, while the Bharatiya Janata Party described the ED action as part of an anti-corruption drive.
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