PMLA court denies bail to Punjab minister Sanjeev Arora, cites risk of evidence tampering

A special Prevention of Money Laundering Act (PMLA) court has dismissed the bail application of Punjab cabinet minister Sanjeev Arora, who is facing money laundering charges in connection with an alleged Goods and Services Tax (GST) fraud of approximately ₹100 crore. The court, in its order dated June 15, 2026, stated that releasing the minister at this stage could lead to tampering with evidence.

Mr. Arora, 62, who held the portfolios of power, industry, and commerce in the Bhagwant Mann government, was arrested by the Enforcement Directorate (ED) on May 9, 2026. The arrest followed searches at his official residence in Chandigarh's Sector 2, as part of an investigation into entities allegedly linked to him. The ED is probing a complex financial trail involving multiple companies accused of fraudulent GST claims and money laundering.

During the bail hearing, the ED’s counsel opposed the plea, arguing that the investigation is still ongoing and that granting bail would allow the petitioner to influence witnesses and destroy evidence. The agency presented specific instances to bolster its claim. According to the court order, the ED submitted that after a witness’s statement was recorded under Section 50 of the PMLA, the individual was taken to an advocate’s office to prepare an application to retract the statement. Furthermore, two persons associated with the petitioner transferred a counsel fee of ₹35,000 to the witness via Google Pay (GPay). However, following separate legal advice, the retraction application was not filed.

The investigation officer produced screenshots of the GPay transaction and other records before the court. The judge also examined the case diary maintained by the investigating agency. After reviewing the materials, the court concluded that there was a genuine risk of evidence tampering. “This court is of the view that the petitioner does not deserve concession of bail at this stage as he may make efforts to tamper with the evidence as he is well acquainted with persons having knowledge of the company's affairs, alleged dealings and transactions. As of today, his family and other known persons are making such efforts, as clear from the facts recorded above,” the order stated.

The court emphasized that the evidence presented prima facie indicated attempts to subvert the legal process. No final judgment has been made on the merits of the case, and Mr. Arora remains in judicial custody. The next steps in the investigation are expected to include further questioning of suspects and scrutiny of financial documents.

Following the minister’s arrest, Chief Minister Bhagwant Mann reallocated Mr. Arora’s portfolios to other cabinet members to ensure continuity of governance. The case has drawn public attention given Mr. Arora’s stature as a sitting minister, but the legal process is proceeding independently.

The ED’s investigation under the PMLA is a standard procedure in cases involving serious financial irregularities. Granting bail in such matters often weighs the risk of evidence tampering against the individual’s right to liberty. The court’s decision underscores the judicial system’s commitment to preventing interference in the investigative process.