The Enforcement Directorate (ED) has filed a prosecution complaint before a Special Court under the Prevention of Money Laundering Act (PMLA) naming former Punjab Cabinet Minister and Aam Aadmi Party (AAP) leader Sanjeev Arora as the principal accused in an alleged trade-based money laundering case.

According to the ED, the investigation concerns alleged fictitious export transactions, foreign remittances and the attachment of assets valued at more than ₹55 crore.

ED Alleges Fake Export Transactions

According to the prosecution complaint, investigators allege that a network of fabricated commercial transactions was created to project exports of premium mobile phones to companies based in the United Arab Emirates (UAE).

The ED alleges that the scheme involved:

• Fabricated purchase invoices.
• Alleged forged shipping and customs documents.
• False export documentation.
• Transactions involving overseas entities.

Authorities are examining whether the export transactions represented genuine commercial activity.

Foreign Remittances Under Investigation

According to the ED:

• Approximately ₹87 crore was allegedly received as foreign remittances.
• The funds were reportedly routed through two Dubai-based entities.
• Investigators allege that the remittances were projected as export proceeds.

The agency is examining banking records, company documents and cross-border financial transactions to establish the source and nature of the funds.

Alleged Wrongful Tax Benefits

The Enforcement Directorate further alleges that the export documentation was used to claim government incentives.

According to investigators, the alleged claims include:

• Around ₹16 crore in Integrated Goods and Services Tax (IGST) refunds.
• Duty drawback benefits linked to the alleged export transactions.

These allegations remain subject to judicial examination during the course of the proceedings.

Assets Worth Over ₹55 Crore Attached

The ED stated that provisional attachment orders have been issued covering assets exceeding ₹55 crore.

According to the agency, the attached assets include:

• Commercial bank accounts.
• Fixed deposits.
• Land parcels.
• Residential properties.
• Commercial real estate located in Ludhiana, Gurugram and Chandigarh.

The attachment has been carried out under provisions of the Prevention of Money Laundering Act.

Judicial Proceedings Continue

According to court proceedings:

• Sanjeev Arora remains in judicial custody.
• A Special Court reportedly declined his regular bail application.
• A challenge to the detention order has been filed before the Punjab and Haryana High Court.

The prosecution complaint originates from a scheduled offence registered by Udyog Vihar Police Station, which forms the basis of the PMLA investigation.

The allegations remain subject to judicial determination.

Investigation Continues

The ED is continuing to examine:

• Cross-border financial transactions.
• Export documentation.
• Customs records.
• Banking records.
• Corporate entities connected with the alleged transactions.
• Digital and financial evidence.

Further action, if any, will depend upon evidence collected during the investigation.

Financial Governance Perspective

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Conclusion

The prosecution complaint has formally initiated judicial proceedings under the PMLA. The allegations against the accused remain subject to trial, and any finding of criminal liability will ultimately depend upon the evidence presented before the competent court.

Shunyatax Global Insight

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