Chandigarh: Punjab industries minister Sanjeev Arora, 62, was arrested by the Enforcement Directorate (ED) on Saturday in connection with a newly registered money laundering case involving him and several entities allegedly linked to him.The operation began Saturday morning when ED teams arrived at Arora’s residence in Sector 2, Chandigarh. After a daylong search, the minister was seen being whisked away by the ED to Delhi in a cavalcade of cars at 5.10pm. Punjab finance minister Harpal Singh Cheema confirmed the arrest. “The ED first raided Ashok Mittal’s residence and he joined the BJP. Then Sanjeev Arora faced ED action, but he refused to join (the BJP). The country saw how its operation unfolded since morning. His premises were searched from morning to evening, and he has ultimately been arrested and taken away. It is the BJP’s design to intimidate leaders of rival parties,” he said.Sources said the ED searches were conducted at five premises in Delhi, Gurugram and Chandigarh, including the premises of Hampton Sky Realty Ltd, which is promoted by Arora’s family, and the minister’s residence. This is the third time in just one year that Arora has faced enforcement action. The ED first raided Arora’s premises in Oct 2025 in connection with a money laundering probe involving alleged misuse of industrial land for residential projects in Ludhiana. At the time, he was a Rajya Sabha MP. Just weeks ago, the agency conducted searches under the Foreign Exchange Management Act (FEMA). This led to the provisional attachment of assets worth Rs 157.12 crore linked to Arora and his real estate firm, Hampton Sky Realty Ltd. Following the April searches, Arora said that he would cooperate with investigators and expressed confidence that truth would prevail. Sources said the latest probe and subsequent arrest involve a Rs 100-crore “fake” GST purchase of mobile phones and subsequent exports to “round trip” alleged illegitimate funds from Dubai to India. As per an April 19 purported ED document, the agency has reportedly alleged financial irregularities linked to firms associated with Arora, including “bogus sales and exports” worth Rs 157.12 crore allegedly routed through shell entities. The agency also suspects round-tripping of funds through foreign entities in violation of FEMA regulations and has attached multiple bank accounts. Arora is one of the most high-profile ministers in the Bhagwant Mann-led state cabinet, holding the charge of industries and commerce, local govt and power. He is an Aam Aadmi Party (AAP) MLA from the Ludhiana West assembly seat. He won the assembly byelection in June 2025, necessitated after the demise of AAP MLA Gurpreet Bassi Gogi. Arora, a Rajya Sabha MP at the time, was fielded by the AAP to retain the seat.
