Punjab Minister Sanjeev Arora Challenges ED Arrest Before P&H High Court, Alleges Political Vendetta
Punjab Cabinet Minister Sanjeev Arora has moved the Punjab and Haryana High Court challenging his arrest by the Directorate of Enforcement (ED) under the Prevention of Money Laundering Act, 2002 (PMLA), alleging that the action against him is politically motivated and violative of statutory safeguards.
A Division Bench comprising Chief Justice Sheel Nagu and Justice Sanjiv Berry heard the matter on May 12, 2026, and adjourned the case for further hearing to May 14, 2026.
Senior Advocate Puneet Bali, appearing for Arora, argued that the ED arrest was part of an ongoing political battle in Punjab and sought parity with relief earlier granted by the High Court in matters involving former AAP MPs who later joined the BJP.
“This Is A Case Of Political Victimisation”: Arora Before High Court
During the hearing, Senior Advocate Puneet Bali submitted before the Bench:
“There is a political vendetta battle which is happening on in Punjab. Your lordships have protected two people, I am only on the other side..This is a case of political victimisation. I want to show two orders passed by mylords recently where mylords have safeguarded from political vendetta. I am seeking parity with them.”
Bali referred to matters involving former AAP MPs Sandeep Pathak and Rajinder Gupta, who, along with five other AAP MPs, recently joined the BJP.
In Rajinder Gupta’s case, after Punjab Police withdrew his security, the High Court directed the State government to ensure that no harm came to him or his family members residing in Punjab. Separately, when Gupta’s company Trident Ltd. was raided by the Punjab Pollution Control Board, the High Court granted relief while observing that the raid appeared politically motivated since it occurred soon after Gupta joined the BJP.
In Sandeep Pathak’s matter, the Court recorded the State government’s assurance that no coercive steps would be taken against him without prior permission of the Bench.
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ED Allegations Against Sanjeev Arora
Arora was arrested by the ED on May 9, 2026, in connection with a money laundering case concerning alleged bogus purchase and export of mobile phones by Hampton Sky Realty Limited (HSRL), formerly known as Ritesh Properties and Industries Limited.
According to the ED, Hampton Sky allegedly reported sales of mobile phones worth approximately ₹157.12 crore during the financial year 2023–24 to local and overseas entities. Out of this, exports worth ₹102.50 crore were allegedly made to UAE-based entities Fortbel Telecom FZCO and Dragon Global FZCO.
The ED alleged that the exports occurred without actual movement of goods and were used as a conduit for remittance of foreign exchange from abroad to India. The agency further claimed that several suppliers linked to the company were dummy or fake entities that merely provided accommodation entries.
The agency also alleged violations of the Foreign Exchange Management Act (FEMA). A Special PMLA Court in Gurugram remanded Arora to ED custody till May 16, 2026.
Arora Challenges Arrest, FIR And Remand Order
Arora’s petition seeks quashing of his arrest, the grounds of arrest, the remand order, and all consequential proceedings.
The plea states that Arora, who served as a Rajya Sabha MP from 2022 to 2025 and currently serves as Punjab’s Minister for Industries and Commerce, had resigned from all executive positions in HSRL after assuming public office and had no role in the company’s day-to-day functioning.
According to the petition, all transactions were legitimate business transactions carried out through proper banking channels with customs clearance, IMEI-based identification, procurement from authorised suppliers, and post-export verification.
The petition further states that searches conducted by the ED between April 17 and April 19, 2026, at Arora’s residence and office premises did not result in recovery of any incriminating material, unaccounted assets, or digital evidence. Despite this, a provisional attachment order was passed attaching his bank accounts and properties.
Arora has also alleged that the FIR registered in Gurugram on the basis of the ED complaint was not supplied to him.
Before the High Court, Bali argued:
“This is draconian. You register an FIR and don’t give copy? I have a screenshot of the portal of police, it says blocked.”
He further submitted:
“ED cannot investigate own FIR. Entire search operation and ECIR of ED is based on that FIR. There is no independent investigation.”
Bali also argued:
“Jurisdictional police has not even started. ED cannot start parallel investigation. Law in Arvind Kejriwal case is that you don’t have to necessarily arrest. It is highest case of political vendetta.”
On the arrest procedure, Bali submitted:
“I am arrested at 7 AM. Grounds of arrest are given at 4 PM. I want to show this FIR is an absolute act of malice against me. Remand order has been passed mechanically by noticing the arguments of the ED and saying that whatever I’ve argued, cannot be [considered] at this stage. The complainant and prosecutor against me is ED. It is illegal in law.”
The petition contends that the remand order was passed mechanically without examining compliance with the mandatory requirements under Section 19 of the PMLA. It also argues that since the alleged transactions were documentary in nature and already in possession of authorities, custodial interrogation was unnecessary.
Bali additionally argued before the Court:
“An absolute political orchestrate! Two FEMA raids are made. One against Shri [Ashok] Mittal; he defects, joins the ruling party, no arrest is made.”
Court Observations During Hearing
During the hearing, the Bench orally observed:
“We cannot go into veracity of allegations unless you challenge FIR.”
To this, Bali responded:
“Law says otherwise.”
After hearing arguments till 1 PM, the Court stated:
“It is 1 o’clock. We will have to hear you later. We can take it up on 14th.”
The matter will now be heard on May 14, 2026.
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