ED Documents Reveal Alleged Rs 157 Crore Fake Export Network Linked To AAP's Sanjeev Arora

Last Updated:May 12, 2026, 02:13 IST

The ED on May 9 arrested Sanjeev Arora in connection with the alleged Rs 100 crore GST fraud-linked money laundering case involving entities allegedly linked to him.

The Enforcement Directorate (ED) on Monday alleged that Punjab industries minister and Aam Aadmi Party (AAP) leader Sanjeev Arora played a central role in the operations of a company accused of carrying out fake exports and laundering funds.

CNN-News18 accessed key details from the investigation into the alleged GST fraud-linked money laundering case involving Arora. The documents alleged that the Punjab minister, as director, controller and beneficial owner of Hampton Sky Realty Limited (HSRL), oversaw fake sales and exports of mobile phones worth Rs 157.12 crore during FY 2023-24.

The agency alleged that the transactions were backed by bogus documentation to project exports, primarily to the UAE, while actually facilitating the round-tripping of black money from Dubai into India in the guise of legitimate business income.

ED investigators also alleged that Arora functioned as the direct link in the operation in his capacity as director and beneficial owner of HSRL, which the agency claimed was at the centre of the alleged scam.

According to the probe agency, HSRL engaged in large-scale fake transactions, with Arora allegedly overseeing and benefiting from the operations.

The ED further alleged that HSRL remitted around Rs 27.73 crore to SK Enterprises, a firm registered in the name of daily-wage labourer Kamal Ahamad, who allegedly had neither the infrastructure nor the financial capacity to conduct such large-scale business transactions.

Investigators termed this a classic indicator of the use of benami and shell entities for layering illicit funds and concealing the origin of money.

Fake GST Invoices And Alleged Bogus Transactions

According to ED findings accessed by CNN-News18, the payments made by HSRL were linked to purported purchases of mobile phones and other goods through fake GST invoices amounting to more than Rs 100 crore.

The agency alleged that no genuine supply of goods or services took place and that the transactions were merely accommodation entries created to fraudulently claim Input Tax Credit (ITC) and secure wrongful GST refunds through fake export documentation.

The ED also identified multiple interconnected shell firms, including Global Traders, allegedly managed by Azhar Haider, which received funds from HSRL as part of the suspected laundering network.

Proprietors linked to several of these firms allegedly denied carrying out any actual business activity, with investigators claiming their statements confirmed that the entities existed only on paper to route and launder funds.

According to the agency, the case involves the generation of proceeds of crime through forged documents, bogus exports and GST fraud, allegedly causing significant losses to the exchequer.

The ED further claimed that the money trail ultimately pointed back to Arora and entities allegedly controlled by him, with investigators accusing him of receiving wrongful gains from the operation.

ED Arrest And Court Proceedings

The Enforcement Directorate on May 9 arrested Sanjeev Arora in connection with the alleged Rs 100 crore GST fraud-linked money laundering case involving entities allegedly linked to him.

Arora, 62, was taken into custody under the Prevention of Money Laundering Act after ED teams conducted searches at his official residence in Chandigarh’s Sector 2 on Saturday morning.

Hampton Sky Realty Limited, where Arora served as a director, said it has faith in the legal process and is fully cooperating with statutory authorities.

A special PMLA court in Gurugram on Sunday remanded Arora to ED custody for seven days.

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