According to officials, the probe centers on alleged fictitious GST transactions linked to Arora’s family-owned firm, Hampton Sky Realty. Investigators have alleged that the company systematically generated fake invoices through non-existent entities based in Delhi to unlawfully claim input tax credits and refunds under the GST framework.
Authorities further claim that the illicit funds were routed through shell companies operating in the United Arab Emirates, in a process described as round-tripping, thereby disguising the origin and flow of the proceeds. The alleged scheme has reportedly resulted in substantial financial losses to the government exchequer.
This arrest marks the third Enforcement Directorate action against Sanjeev Arora within a span of less than two years, intensifying scrutiny over his financial and business dealings.
In response, the Aam Aadmi Party has characterized the arrest as a politically motivated action, alleging it to be part of a broader vendetta by the Bharatiya Janata Party ahead of the 2027 elections. Meanwhile, political opponents have stated that the investigation highlights deep-rooted corruption and misuse of fiscal systems.
The Enforcement Directorate continues its investigation into the wider network of alleged transactions, financial flows, and associated entities linked to the case.
The development is expected to have significant political ramifications, further escalating tensions between ruling and opposition parties while the investigation progresses into one of the most high-profile GST fraud cases involving a serving state minister.
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