Chandigarh, May 9: Sanjeev Arora, Punjab’s Industries Minister and AAP MLA from Ludhiana West, was arrested by the Enforcement Directorate (ED) on Saturday after the central agency carried out fresh raids against him and persons allegedly linked to him in connection with a newly registered money laundering probe.

The latest ED action has further escalated the political confrontation between the Aam Aadmi Party government in Punjab and the BJP-led Centre.

Following the arrest, AAP national convenor Arvind Kejriwal launched a sharp attack on the BJP, claiming the crackdown would politically backfire on the party.

Kejriwal alleged that discussions regarding the ED raids had reached “every household” in Punjab and claimed that even BJP workers were upset with the Centre’s approach towards the state.

“Those you arrest will come out of jail in four days, but BJP will not be able to enter Punjab for the next 20 years,” he said.

Raids Conducted In Chandigarh, Delhi And Gurugram
ED teams reached Arora’s official residence in Chandigarh’s Sector 2 around 7 am and began search operations shortly after 7.25 am.

Officials arrived in nearly 20 vehicles, while around three dozen CIA and Special Forces personnel were deployed to provide security during the searches.

Apart from Chandigarh, the agency also conducted raids at two locations in Delhi and at Hampton Sky Realty Ltd in Udyog Vihar, Gurugram.

The latest ED action follows a fresh case registered under the criminal provisions of the Prevention of Money Laundering Act (PMLA).

ED Alleges Fake GST Purchases, Dubai Round-Tripping
According to the ED, the investigation relates to fake GST purchases of mobile phones worth more than Rs 100 crore and subsequent exports allegedly used to “round-trip” illegitimate funds from Dubai to India.

The agency alleged that fake GST purchase bills were procured from non-existent firms in Delhi to fraudulently claim input tax credit (ITC).

Earlier FEMA Probe And Asset Attachment
The latest raids come less than a month after the ED searched Arora and related entities on April 17 under the Foreign Exchange Management Act (FEMA).

As part of that investigation, the agency had provisionally attached movable and immovable assets worth Rs 157.12 crore linked to Hampton Sky Realty Ltd, Sanjeev Arora and associated entities over alleged bogus sales and exports.

Arora, 62, is an AAP MLA from Ludhiana West and had earlier stated that he would fully cooperate with investigators while expressing confidence that “truth will prevail”.

The minister had also faced ED raids in 2024 in connection with an alleged industrial land misuse case when he was serving as a Rajya Sabha MP.

AAP Accuses BJP Of Misusing Central Agencies
Punjab Chief Minister Bhagwant Mann accused the BJP-led Centre of using agencies such as the ED and CBI as “weapons” against Opposition parties.

“The end of this unethical alliance of ED-BJP will begin from Punjab,” Mann said.

Kejriwal, in a strongly worded statement, alleged that Punjab had been “coerced” and “ill-treated” by the Centre over the past few years.

“Modi ji has got daily ED raids started in Punjab soon after the Bengal polls concluded,” he alleged.

The former Delhi chief minister also accused the Centre of targeting Punjab’s water rights, attempting to take over Punjab University and withholding rural development funds before “unleashing” ED raids in the state.

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‘Join BJP Or Face Raids’: Kejriwal
Kejriwal linked the action against Arora with recent raids on Ashok Kumar Mittal, who later joined the BJP along with six other AAP Rajya Sabha MPs.

“Ashok Mittal joined the BJP after ED raids. Arora did not join the BJP, so another raid has happened,” he alleged.

Drawing a comparison with Mughal emperor Aurangzeb, Kejriwal accused Prime Minister Narendra Modi of trying to politically “capture” Punjab after targeting other parts of the country.

“Punjab, taking inspiration from the sacrifices of Sikh Gurus, will face Modi ji’s torture and save the whole country from it,” he said.

ED Actions Intensify Ahead Of 2027 Punjab Polls
The ED has intensified actions in Punjab in recent weeks ahead of the 2027 Assembly elections.

Earlier this week, the agency raided builders, real estate firms and alleged associates of Punjab AAP president Aman Arora, who dismissed the allegations as a “fabricated narrative”.

The AAP has repeatedly termed the ED actions in Punjab a political witch hunt allegedly orchestrated by the BJP-led central government.