The Punjab and Haryana High Court on Tuesday postponed the hearing on the bail plea of Punjab Cabinet Minister Sanjeev Arora and before deciding on his request for bail, the court directed ED to file a detailed status report on the progress of its investigation, the matter will now be heard on September 3. At the next hearing, the High Court will examine the ED's report before deciding whether Arora should be granted bail or continue in judicial custody.
Arora is currently lodged in Gurugram jail after a Special Prevention of Money Laundering Act court in Gurugram rejected his bail application in June, the ED had opposed his release, arguing that the allegations are serious and that the investigation is still underway.
ED arrested Arora on May 9, 2026, following searches at his official residence in Chandigarh and other linked locations and he was taken into custody in connection with a money laundering investigation linked to an alleged fake GST billing and export fraud case, according to the ED, the case involves an alleged fake GST fraud worth more than ₹100 crore.
The agency claims that Arora and others were involved in a network of shell companies allegedly used to create fake business transactions related to mobile phone trading and the ED alleges that these companies existed only on paper and did not carry out genuine business activities.
The investigating agency has further alleged that fake invoices were generated through these companies to claim fraudulent Input Tax Credit (ITC) and GST refunds and it also claims that some of the money was allegedly routed to Dubai and later brought back into India through a process known as "round-tripping." These are allegations made by the ED and remain under investigation and during recent searches at properties linked to Arora in Punjab and Uttar Pradesh, the ED said it recovered digital records and financial documents that it considers relevant to the investigation and the agency is examining these materials as part of its ongoing probe.
Following Arora's arrest, the Punjab government reassigned his ministerial portfolios to other ministers while the investigation continues while the High Court has not expressed any opinion on the merits of the case, its latest order only requires the ED to submit a status report before the court decides on the bail plea and no findings of guilt have been recorded against Arora, and the allegations made by the ED are yet to be tested during the legal process.
