The Enforcement Directorate (ED) on Tuesday carried out fresh searches across Punjab and Uttar Pradesh as part of its ongoing money laundering investigation into an alleged ₹100 crore Goods and Services Tax (GST) fraud linked to mobile phone sales. The latest action comes amid an expanding probe involving Punjab minister Sanjeev Arora and several individuals and entities suspected of being connected to the alleged financial irregularities.
According to officials, the searches were conducted at multiple locations in Jalandhar and Ludhiana in Punjab, as well as Bareilly and Noida in Uttar Pradesh. The raids targeted residential and business premises associated with persons and companies that are under the scanner in the case. Investigators are examining financial records, digital evidence and business transactions that may help establish the movement and utilisation of funds allegedly generated through fraudulent GST claims.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
Hampton Sky Realty Under Scanner
A significant focus of the operation was Hampton Sky Realty Ltd., a company that investigators have linked to the ongoing probe. Officials believe that documents and electronic records recovered during the searches could provide important clues regarding financial transactions, investments and business arrangements connected to the alleged fraud. The agency is also examining whether proceeds of crime were routed through multiple entities or invested in assets and commercial ventures.
Alleged GST Fraud Network in Mobile Trade
The case stems from allegations of a large-scale GST fraud involving mobile phone trading operations. Investigators suspect that fake invoices and questionable transactions were used to claim fraudulent input tax credits, resulting in substantial losses to the government exchequer. Based on these allegations, authorities initiated a money laundering investigation to determine whether the proceeds generated through the alleged fraud were concealed, transferred or integrated into legitimate business activities.
Political and Legal Developments
Sanjeev Arora was arrested by the ED last month following extensive searches at his official residence in Chandigarh. He is currently in judicial custody. At the time of his arrest, he was serving as Punjab’s Minister for Power, Industry and Commerce. Following his arrest, the Punjab government redistributed his ministerial portfolios among other cabinet members to ensure continuity in governance.
Officials familiar with the investigation said the latest searches are aimed at corroborating evidence already collected and identifying additional links in the alleged financial network. Investigators are reportedly tracing the flow of funds, examining banking transactions and scrutinising relationships among companies, directors and business associates connected to the case. The agency is also attempting to determine whether any additional beneficiaries emerged from the alleged scheme.
The matter has generated considerable political attention in Punjab. Opposition parties have intensified their criticism of the state government, citing the seriousness of the allegations. Meanwhile, members of the ruling establishment have maintained that the investigation should be allowed to proceed through the legal process and that conclusions should not be drawn before judicial scrutiny is completed.
Legal experts note that search operations and document seizures are crucial components of money laundering investigations. Such proceedings enable agencies to collect evidence relating to financial transactions, ownership structures, corporate relationships and the ultimate destination of funds. If fresh evidence emerges from the seized records, investigators may expand the scope of the case or pursue additional legal action against individuals and entities found to be involved.
The business community is also closely monitoring developments because the alleged fraud is linked to GST compliance in the mobile phone trade, a sector that has witnessed rapid growth in recent years. Tax experts say authorities have increasingly focused on detecting fraudulent input tax credit claims and dismantling networks that exploit loopholes in the taxation system.
For now, the ED’s latest round of searches indicates that the investigation remains active and far from complete. The analysis of seized documents, electronic devices and financial records is expected to continue in the coming weeks. Investigators will be looking for evidence that can strengthen the prosecution’s case and clarify the extent of the alleged fraud. As judicial proceedings move forward, the case is likely to remain one of the most closely watched economic crime investigations involving a serving political figure in recent times.
