The Enforcement Directorate arrested Punjab Industries Minister Sanjeev Arora and presented him in a Gurugram court on allegations of a massive GST fraud.

This arrest marks a significant escalation in the legal pressure on the Aam Aadmi Party (AAP) administration in Punjab. The case involves high-level allegations of financial misconduct and the misuse of tax systems to launder state-level funds.

Authorities said that Arora, a 62-year-old AAP leader [2], was involved in a scheme to create fake GST invoices. This mechanism was allegedly used to launder approximately Rs 100 crore [1], [3], [4]. The arrest was made under the Prevention of Money Laundering Act (PMLA) [2].

As part of the investigation, the agency conducted raids at multiple locations. These searches included his official residence in Chandigarh [1], and locations in Delhi and Ludhiana [1]. Other reports indicate that searches also concluded at his house in Ludhiana and continued at offices in Gurugram [5].

Arora was brought before the court in Haryana to face the charges related to the alleged money-laundering scheme. The investigation focuses on how the fake invoices were generated and where the illicit funds were diverted. The agency continues to examine the financial records seized during the raids across the three cities.

“The arrest was made under the Prevention of Money Laundering Act (PMLA).”

The arrest of a sitting cabinet minister on charges of large-scale tax fraud underscores the ongoing tension between central investigative agencies and AAP-led governments. By utilizing the PMLA, the Enforcement Directorate can freeze assets and prolong detention, which may create political instability within the Punjab state government and complicate the party's governance narrative regarding transparency.