Arrest over alleged GST fraud sparks confrontation between AAP, BJP
The Enforcement Directorate on Saturday arrested Punjab Power and Industries Minister Sanjeev Arora after conducting raids at multiple locations linked to him in Punjab and Chandigarh in connection with an alleged money laundering and fake GST transactions case.
The ED action came after agency officials carried out searches at Arora’s official residence and premises linked to his associates. Sources said documents, electronic devices and financial records were seized during the operation. The case is linked to alleged fake GST purchases of mobile phones worth over Rs 100 crore through shell firms allegedly operating from Delhi.
Investigators suspect that fake invoices were generated to claim fraudulent GST refunds and input tax credit, causing substantial losses to the exchequer. The agency is also probing allegations of illegal money transfers routed through Dubai and possible round tripping of funds.
The arrest triggered a sharp political confrontation in Punjab, with opposition leaders alleging the existence of a wider nexus involving property developers, land deals and change of land use approvals. Several opposition leaders demanded a broader investigation into alleged financial irregularities and sought lookout notices against individuals allegedly linked to the network.
Arora, considered one of the influential ministers in the Bhagwant Mann cabinet, has been associated with Punjab’s industrial and investment promotion initiatives. Before entering politics, he was a prominent industrialist from Ludhiana and had served as a Rajya Sabha MP.
The ED probe has also revived allegations regarding alleged conflict of interest in departments related to industry, housing, power and local bodies. Opposition leaders claimed that farmers’ land was allegedly acquired at lower rates and later sold to developers at massive profits through a politically protected network.
The Aam Aadmi Party strongly criticised the ED action and termed it politically motivated. Chief Minister Bhagwant Mann accused the Centre of misusing investigative agencies to target opposition-ruled States. AAP leaders alleged that the raids were aimed at creating political pressure ahead of upcoming electoral battles.
Meanwhile, opposition parties intensified demands for a time-bound probe into alleged CLU-related irregularities, GST fraud, property transactions and suspected overseas money movements. Political circles in Punjab remained abuzz over the possibility of further action by central agencies as the ED expands its investigation into the alleged financial network.
The arrest is expected to deepen the political crisis for the Punjab government and further escalate the confrontation between the State government and the BJP-led Centre.
