The Enforcement Directorate (ED) today carried out another round of searches in a money laundering investigation involving Punjab Cabinet Minister Sanjeev Arora and others in an alleged Rs 100 crore GST fraud case linked to mobile phone transactions.
The latest action covered multiple locations across Delhi-Noida (NCR) and Punjab, including Ludhiana and Jalandhar, as part of the probe connected with Arora’s firm Hampton Sky Realty, according to reports.
Searches spread across Punjab and NCR
ED teams also searched the premises of Municipal Corporation contractor Amit Bajaj in Jalandhar. Officials said Amit Bajaj and his elder brother Inderjit Bajaj, have been major contractors associated with the Municipal Corporation and other government departments in Punjab and other states, including Gujarat.
The investigation is linked to allegations involving the sale of mobile phones and suspected financial irregularities. The ED’s searches are part of its ongoing probe under the Prevention of Money Laundering Act (PMLA).
Arora arrested earlier
Punjab Industries Minister Sanjeev Arora was arrested by the ED on May 9 from his official residence under the provisions of the Prevention of Money Laundering Act. He is currently in judicial custody.
Following his arrest, Arora approached the Punjab and Haryana High Court, challenging the action and claiming that his arrest was “arbitrary, mechanical, without jurisdiction, and in violation of the mandatory safeguards guaranteed under Articles 14, 21, and 22 of the Constitution of India”.
He sought immediate relief from “illegal and unconstitutional custody of the Directorate of Enforcement” and requested directions to stay the arrest and set aside the subsequent remand.
In 2024, Arora, who represents Ludhiana (West), had also faced ED searches in a separate money laundering case linked to the alleged conversion of industrial land for residential projects. At that time, he was a Rajya Sabha MP.
Hampton Sky Realty denies allegations
After Arora’s arrest, Hampton Sky Realty Ltd (formerly Ritesh Properties and Industries) rejected the allegations and said it had followed all applicable laws in its mobile phone export operations.
The company said it entered the mobile phone export business in May 2023 and said the sector was aligned with government initiatives under ‘Make in India’ and Production-Linked Incentive schemes.
The company stated, “This factual position alone disposes of any allegation of ’round-tripping’ or ‘bogus exports’.”
It further said, “nothing has been retained offshore, kept in any concealed account or routed back to any individual or entity.”
“The company is the victim of the alleged supplier-side fraud,” it added.