Punjab Government Shaken as Minister Arrested in Massive Corruption Probe; Sukhbir Badal Alleges ₹200 Crore Monthly “Booty”
AAP leadership has accused the BJP-led central government of weaponizing federal agencies to destabilize the state ahead of the 2027 Assembly polls.
Raman Media Network Political Desk
New Delhi | May 11, 2026
CHANDIGARH – The Aam Aadmi Party (AAP) government in Punjab has been plunged into a deep legal and political crisis following the arrest of Punjab Industries Minister Sanjeev Arora and intensifying scrutiny of top leadership. On May 9, 2026, the Enforcement Directorate (ED) arrested Arora in connection with a money laundering probe involving alleged fake GST purchases exceeding ₹100 crore, which investigators claim were used to “round-trip” funds from Dubai to India.
This arrest marks a significant escalation in what the ED describes as a “systematic corruption model” within the state. Beyond the GST fraud, Sanjeev Arora has previously faced actions under the Foreign Exchange Management Act (FEMA), including the attachment of assets worth ₹157.12 crore linked to him and Hampton Sky Realty Ltd.
Simultaneously, the ED has turned its attention to Aman Arora, Punjab’s Cabinet Minister and AAP state president. Recent raids targeted his close associate, Gaurav Dhir, in relation to a land scam and money laundering probe involving the Altus real estate project. While Aman Arora has strongly refuted the allegations as a political smear campaign, federal investigators are reportedly moving toward a “Corporate Liability Framework” to classify the AAP as a criminal enterprise that benefits from the proceeds of crime.
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The political fallout reached a fever pitch on Sunday, May 10, when Shiromani Akali Dal President Sukhbir Singh Badal issued a scathing indictment of the state government. Badal compared the AAP’s rule to that of Ahmed Shah Abdali, claiming the party has “plundered Punjab at will”. He further alleged that Sanjeev Arora’s “duty” was to collect a “booty of Rs 200 crore each month” to be handed over to AAP national convenor Arvind Kejriwal. Badal has demanded that all AAP legislators and “halka incharges” be probed alongside Chief Minister Bhagwant Mann.
In response, AAP leadership has accused the BJP-led central government of weaponizing federal agencies to destabilize the state ahead of the 2027 Assembly polls. Chief Minister Bhagwant Mann characterized the situation as an “unethical alliance of ED-BJP,” while Arvind Kejriwal compared the current political pressure to the era of Aurangzeb. The crisis comes amidst a wave of defections, with seven out of ten AAP Rajya Sabha members, including Raghav Chadha and Ashok Mittal, recently joining the BJP following various investigations.
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