AAP Punjab Leaders Face Major Corruption Probes

These individual cases are part of what investigators and forensic reports describe as a broader “AAP Corruption Model”.

RMN News Political Desk
New Delhi | May 9, 2026

CHANDIGARH – The Aam Aadmi Party (AAP) government in Punjab is facing an intensifying legal and political crisis as the Enforcement Directorate (ED) ramps up investigations into senior leadership. On May 9, 2026, the agency arrested Punjab Industries Minister Sanjeev Arora following fresh raids in a money laundering probe, just days after conducting searches related to an associate of the state’s AAP president, Aman Arora.

Sanjeev Arora Arrested in GST Fraud Case

The arrest of Sanjeev Arora follows a new case registered under the Prevention of Money Laundering Act (PMLA) regarding alleged fake GST purchases of mobile phones exceeding ₹100 crore. The ED alleges these fraudulent bills were used to “round-trip” illegitimate funds from Dubai to India.

This marks the second major action against Sanjeev Arora in less than a month. In April 2026, the ED conducted searches under the Foreign Exchange Management Act (FEMA) and subsequently attached assets worth ₹157.12 crore linked to him and Hampton Sky Realty Ltd. Earlier probes also investigated his alleged involvement in the misuse of industrial land.

Aman Arora Under Scrutiny Over Land Scam

Simultaneously, the ED has targeted the associates of Aman Arora, Punjab’s Cabinet Minister and AAP state president. On May 7, 2026, raids were conducted at multiple locations, including those belonging to his close associate, Gaurav Dhir, in connection with a land scam and money laundering probe involving the Altus real estate project.

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Aman Arora has strongly refuted the allegations, claiming his name was “unnecessarily dragged” into the case to defame him politically. While acknowledging a 22-year personal friendship with Dhir, Arora maintained there were no financial or business links between them and challenged the ED’s narrative, stating the project in question had received all necessary government clearances years ago.

Allegations of a “Systematic Corruption Model”

These individual cases are part of what investigators and forensic reports describe as a broader “AAP Corruption Model“. The ED is reportedly moving toward a “Corporate Liability Framework,” seeking to classify the AAP as a criminal enterprise under Section 70 of the PMLA. This strategy asserts that the party itself is the ultimate beneficiary of “proceeds of crime” generated through various schemes, including:

• Industrial Land Laundering: Converting state assets into private capital.
• Excise Policy Scams: Alleged kickbacks diverted to fund election campaigns.
• Infrastructure Inflation: Over-voicing in hospital and classroom construction projects.

Other Punjab leaders, including Rajya Sabha MP Ashok Kumar Mittal, have also faced FEMA-related investigations.

Political Fallout and Allegations of Targeting

The AAP leadership has launched a fierce counter-attack, accusing the BJP-led Centre of weaponizing federal agencies ahead of the 2027 Assembly polls. AAP chief Arvind Kejriwal alleged that the raids are a tactic to coerce leaders into joining the BJP, citing the example of Ashok Mittal, who joined the BJP following ED actions.

Punjab Chief Minister Bhagwant Mann stated that the “unethical alliance of ED-BJP” would meet its end in Punjab, while Kejriwal compared the current political environment to the era of Aurangzeb, vowing that the state would resist “torture” from the central government.