The Enforcement Directorate (ED) is examining the refund of a nearly ₹2 crore bank guarantee by Punjab State Power Corporation Limited (PSPCL) to a company allegedly linked to Punjab minister Sanjeev Arora as part of its ongoing money laundering investigation. Officials have reportedly summoned senior PSPCL officials and sought records connected to the transaction now under the agency’s scanner.
ED Seeks Records Over ₹1.97 Crore Refund
According to reports, the ED has issued a notice to the PSPCL Chairman and Managing Director seeking documents related to the refund of a bank guarantee amounting to approximately ₹1.97 crore to Ritesh Properties and Industries Limited, a company allegedly associated with Arora. Investigators are examining whether the refund involved any procedural irregularities or undue favour.
Officials reportedly asked PSPCL authorities to produce records connected to the approval and release of the security amount during the period when Arora held the Power portfolio in the Punjab government.
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Money Laundering Probe Already Underway
The scrutiny comes amid an ongoing ED investigation into alleged financial irregularities and suspected money laundering linked to companies associated with Arora. The agency has alleged that certain firms were involved in fake mobile phone export transactions used to route funds through banking channels.
Investigators claim the transactions may have involved layered financial movements and shell entities allegedly used to show inward remittances as legitimate business income.
Arora Challenging ED Action in High Court
Arora has challenged his arrest and the ED’s actions before the Punjab and Haryana High Court, alleging that the proceedings are illegal and politically motivated. In court filings, he reportedly argued that the transactions under investigation relate to his period as a businessman before joining public office.
The ED, however, has continued expanding its probe by examining company transactions, bank records, and related financial dealings involving entities allegedly linked to the minister.
Financial and Administrative Decisions Under Scrutiny
The latest development highlights increasing scrutiny by enforcement agencies into government-linked financial approvals, public sector transactions, and alleged misuse of official influence in commercial dealings. Authorities are expected to continue examining whether the PSPCL refund decision was consistent with regulatory procedures and contractual norms.
Officials have not publicly disclosed whether any wrongdoing has been established in relation to the refund transaction, and the investigation remains ongoing.
