Punjab Cabinet Minister and senior Aam Aadmi Party (AAP) leader Sanjeev Arora has been remanded to seven days of Enforcement Directorate (ED) custody in connection with an alleged ₹157 crore money laundering case linked to suspected fake mobile phone exports and financial irregularities.

A court in Gurugram granted the ED custody after the federal agency sought custodial interrogation as part of its ongoing probe under the Prevention of Money Laundering Act (PMLA). According to investigators, the case revolves around alleged bogus export transactions, suspicious overseas remittances, and the use of shell entities to route funds abroad.

The ED reportedly conducted extensive raids at multiple locations associated with Arora and linked business entities in Delhi, Gurugram, and Chandigarh before taking the Punjab minister into custody. Investigators claim that one of the companies under scrutiny showed mobile phone sales worth nearly ₹157 crore during the 2023–24 financial year.

Officials suspect that a significant portion of these transactions involved questionable exports to firms based in the United Arab Emirates. According to the agency, the transactions may have been structured to disguise illicit financial movements through fake invoicing and manipulated trade records.

The ED informed the court that several overseas remittances appeared suspicious and required detailed interrogation to establish the alleged money trail, identify beneficiaries, and determine whether proceeds of crime were layered through multiple firms and bank accounts. The agency also alleged that some entities involved in the transactions lacked genuine business activity, raising concerns about the legitimacy of the exports.   

Court documents reportedly described the allegations as “serious,” prompting the judge to permit seven days of custodial interrogation despite the ED seeking a longer remand period.

The arrest has triggered a sharp political confrontation in Punjab. The AAP leadership accused the Bharatiya Janata Party-led central government of misusing investigative agencies to target opposition leaders. Senior party leaders defended Arora and termed the action politically motivated.

Punjab Chief Minister Bhagwant Mann and other AAP leaders publicly backed Arora, claiming the investigation was part of a broader campaign against opposition governments. Party representatives argued that enforcement agencies were being selectively deployed ahead of important political developments in the state.

Meanwhile, opposition leaders intensified attacks on the ruling AAP government, saying the arrest exposed deeper concerns regarding alleged corruption and financial misconduct within the Punjab administration. Leaders from the Congress and Shiromani Akali Dal demanded a transparent and time-bound investigation into the matter.

Sanjeev Arora, a businessman-turned-politician, currently serves as a Cabinet minister in the Punjab government after previously representing Punjab in the Rajya Sabha. He has been associated with multiple business ventures in real estate, exports, and manufacturing over the years.

The ED investigation is expected to continue over the coming days as officials examine financial records, export documentation, banking transactions, and the role of associated firms and individuals linked to the alleged laundering network. Authorities are also investigating whether the transactions involved GST fraud, trade-based money laundering, or illegal foreign remittances.

The case has now emerged as one of the most high-profile financial investigations involving a sitting Punjab minister in recent months, with political reactions and legal proceedings likely to intensify as the probe progresses.