A court in Gurugram on Sunday remanded Punjab industries minister Sanjeev Arora to seven-day custody of the Enforcement Directorate (ED), a day after the central agency arrested him in an alleged Rs 100-crore GST fraud-linked money laundering case.
Court Observations
Judge Narender Sura of the Sessions-cum-special Prevention of Money Laundering Act (PMLA) court observed that the allegations against Arora are very serious and that the ED needs his custody to investigate and trace the alleged money trail.
Defense Argument
Appearing for the Aam Aadmi Party (AAP) leader, his lawyer alleged that a false and frivolous case had been cooked up against the minister and that no prima facie evidence was collected by the investigating officer prior to his arrest.
Court Order
However, the court noted that the ED had a good and sufficient reason to seek his custody and that it would be just and proper to remand him for a week. The agency had sought 10 days of custodial interrogation.
In his order, Judge Sura wrote: Since the allegations against the accused are very serious and the ED is seeking to decode the money trail, role of the accused, vis-a-vis his persons or aides, who facilitated the offence of money laundering, so as to get to know as to how the accused persons were successful in generating proceeds of crime, in opinion of the court, a valid ground exists for the applicant for custodial interrogation of the accused.
The order further stated: The ED is duty-bound to trace the money, reveal the modus operandi adopted by the accused for generating proceeds of crime and its circulation from one source to another. In my considered opinion, the above mentioned goal can be achieved only when the opportunity is given to the applicant (ED) to interrogate the accused in custody.
ED Allegations
The ED told the court that its case pertained to Hampton Sky Realty Limited (HSRL), a Gurugram-based company in which Arora was a director and shareholder, along with other HSRL-linked entities. It described Arora as the beneficial owner and controller of the company along with his family members.
According to the ED, HSRL sold mobile phones worth Rs 157.12 crore to several domestic and overseas entities during the 2023–24 financial year. The agency alleged that, as the company’s CMD, Arora was responsible for the conduct of its business, which involved illicit transactions.
The ED further alleged that the company, in connivance with its directors, employees and linked persons, used a network of shell entities to generate fake purchase invoices and show bogus sales and exports.
The agency claimed that Arora was the key person involved in offences related to money laundering, including bogus billing, fraud, forgery and payments to shell entities.
Political Reactions
Punjab chief minister Bhagwant Mann and AAP supremo Arvind Kejriwal condemned the ED action, accusing the BJP-led Centre of using investigative agencies as weapons to scare opposition leaders into joining the party.
This article was generated with inputs from PTI.
