The legal troubles surrounding Punjab minister Sanjeev Arora deepened this week after the Enforcement Directorate (ED) alleged before a special court in Gurugram that the senior politician attempted to mislead investigators during custodial interrogation in a high-profile money laundering and alleged GST fraud case involving more than ₹102 crore.
The case, which has rapidly evolved into one of the most closely watched financial investigations linked to a serving Punjab minister, revolves around allegations of bogus exports, forged documentation, shell transactions and fraudulent GST refund claims linked to the mobile phone trading business of M/s Hampton Sky Realty Limited (HSRL). Arora was serving as Chairman and Managing Director of the company during the period under scrutiny.
During remand proceedings before the Special Court under the Prevention of Money Laundering Act (PMLA) on May 16, the ED claimed that Arora repeatedly denied knowledge of the individuals and entities connected to the purchase and export of mobile phones by HSRL. According to the agency, he distanced himself from the company’s mobile phone division and told investigators that the operations were being handled entirely by businessman Sanjeev Walia.
Investigators further alleged that Arora informed the agency that Walia was the authorised signatory for the bank account maintained for the mobile division of HSRL. However, the ED argued before the court that this statement contradicted banking records obtained during the investigation, suggesting discrepancies between Arora’s claims and the documentary evidence collected so far.
The ED’s case centres on allegations that HSRL, allegedly in connivance with several associates and linked firms, generated proceeds of crime amounting to approximately ₹102.5 crore through what investigators describe as fabricated exports and bogus procurement of mobile phones. The agency alleges that forged invoices and manipulated trade records were used to claim fraudulent GST refunds on purported exports.
According to submissions made in court, HSRL reported mobile phone sales worth nearly ₹157.12 crore between May 12 and October 27, 2023. Out of these transactions, exports valued at around ₹102.5 crore were allegedly routed to two UAE-based firms — M/s Fortbel Telecom FZCO and M/s Dragon Global FZCO.
Investigators have also pointed to the alleged corporate links between these overseas firms and Indian entities connected to the accused. The ED informed the court that M/s Fortbel Telecom FZCO is allegedly associated with M/s Fortbell Gadget Pvt. Ltd, a company linked to Ludhiana-based businessman Hemant Sood and businessman Chander Sekhar. Both individuals, according to the agency, are connected to HSRL through another company, M/s Findoc Finvest Pvt Ltd.
The investigation took a more serious turn earlier this month when the ED alleged during a separate hearing on May 9 that HSRL had transferred ₹27.73 crore to a company allegedly registered in the name of a daily-wage labourer. The agency suggested that the transaction reflected the use of proxy entities and suspected shell structures to conceal the movement of funds.
The origins of the case trace back to a search conducted under the Foreign Exchange Management Act (FEMA) on April 17. A day later, an FIR was registered at Udyog Vihar Police Station in Gurugram against Sanjeev Arora, his son Kavya Arora, Hemant Sood, Chander Sekhar, M/s Hampton Sky Realty Limited and M/s Findoc Finvest Pvt Ltd. The FIR invoked charges including cheating, forgery, criminal breach of trust, destruction of evidence and criminal conspiracy.
Subsequently, the Enforcement Directorate formally registered an Enforcement Case Information Report (ECIR) on May 5, paving the way for a parallel money laundering investigation under the PMLA framework.
Meanwhile, Arora has challenged the legality of his arrest before the Punjab and Haryana High Court. In his petition, he has argued that the arrest was “arbitrary, mechanical and without jurisdiction”, claiming that mandatory constitutional safeguards were ignored by the investigating agency. He has also sought the quashing of the remand order issued by the Gurugram court.
The case now sits at the intersection of politics, corporate finance and federal investigation, with implications that could extend far beyond Punjab’s political landscape. As the ED continues to trace financial transactions and examine the alleged network of companies involved, the matter is expected to intensify both legally and politically in the weeks ahead.