The Enforcement Directorate arrested Punjab Industries Minister Sanjeev Arora on Saturday in connection with a money-laundering investigation [1].

The arrest of a sitting cabinet minister marks a significant escalation in the federal agency's crackdown on financial crimes within the state government. It highlights the ongoing scrutiny of tax evasion and fraudulent export schemes involving high-ranking officials.

Officials conducted raids at the residence of Arora in Chandigarh before executing the arrest [1, 2]. The action follows an investigation into an alleged fake GST mobile-export scheme [2, 3]. Investigators are probing the movement of funds linked to this operation, which is being handled under the Prevention of Money Laundering Act (PMLA) [1, 4].

The case centers on the alleged laundering of Rs 100 crore [3, 4]. This specific amount is tied to the fraudulent use of Goods and Services Tax (GST) credits, where firms reportedly claim tax refunds on exports that never occurred, or were falsified [2, 3].

The Enforcement Directorate has not released a detailed statement regarding the specific evidence recovered during the Chandigarh residence raids. However, the agency said the probe is part of a wider effort to dismantle networks using fake invoices to siphon money from the state treasury [2].

The Aam Aadmi Party, which Arora represents, has reacted to the development. Party representatives said the BJP was responsible for the arrest [4]. The political tension underscores a broader pattern of legal battles between the regional administration and central investigative agencies.

Arora remains in custody as the agency continues its investigation into the financial trail of the Rs 100 crore [3] scheme.

“The Enforcement Directorate arrested Punjab Industries Minister Sanjeev Arora on Saturday”

This arrest underscores the increasing use of the Prevention of Money Laundering Act (PMLA) to target political figures in India. By focusing on fake GST credits, the Enforcement Directorate is targeting a specific type of systemic financial fraud where shell companies are used to claim illicit tax refunds. The move likely increases political friction between the central government and the Punjab state administration.