ED Arrest’s Punjab Industries Minister Sanjeev Arora in Fake GST Billing Matter

The Enforcement Directorate (ED) on Saturday arrested Punjab Industries Minister Sanjeev Arora in connection with an alleged money laundering case involving fake GST purchases and export transactions exceeding Rs. 100 crore. The action was taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

According to sources, the ED conducted search operations since Saturday morning at multiple premises linked to Arora and his associates across Chandigarh and the Delhi-NCR region. The searches reportedly covered four premises, including the official residence allotted to Arora in his capacity as a minister.

The ED also carried out raids at five additional locations in Delhi, Gurugram and Chandigarh, including offices of Hampton Sky Realty Limited and other premises linked to the minister.

The agency has alleged that fake GST purchase transactions relating to mobile phones worth over Rs. 100 crore were used to facilitate laundering of funds through export transactions and alleged round-tripping of money from Dubai to India.

According to the allegations, fake purchase invoices were allegedly procured from non-existent firms based in Delhi for claiming fraudulent Input Tax Credit (ITC), export-related GST refunds and duty drawback benefits.

The ED further alleged that the transactions caused substantial loss to the government exchequer while resulting in wrongful financial gains to the accused persons.

The investigation pertains to alleged use of bogus GST entities and fabricated purchase bills for availing inadmissible tax benefits and routing funds through overseas transactions.