Protect me like you protected BJP MPs: AAP minister Sanjeev Arora asks Punjab and Haryana HC to free him from ED custody

Aam Aadmi Party (AAP) minister Sanjay Arora on Tuesday argued before the Punjab and Haryana High Court that he was arrested by the Enforcement Directorate (ED) as part of an ongoing fight between the Bharatiya Janata Party (BJP) and Aam Aadmi Party (AAP) in Punjab.

The submission was made before Division Bench of Chief Justice Sheel Nagu and Justice Sanjiv Berry during the hearing of a petition challenging Arora's arrest by the ED in a money laundering case.

Senior Advocate Puneet Bali, representing Arora, said,

"This is a case of political victimisation. I want to show two orders passed by mylords recently where mylords have safeguarded from political vendetta. I am seeking parity."

Bali said the case against Arora was a shocking case of political vendetta.

"Two matters have come to you from the other side. This is from one more side," he added.

Bali was referring to recent interventions made by Chief Justice Nagu in cases of two former AAP MPs Sandeep Pathak and Rajinder Gupta. Pathak and Gupta along with five other AAP MPs recently joined the BJP.

After Gupta's security was subsequently withdrawn by Punjab Police, the High Court directed the State government to ensure that no harm comes to him or his family members residing in Punjab.

Similarly, in a petition filed by Pathak, the Court recorded an assurance from the State government that no coercive steps would be taken against him without seeking prior permission of the Bench.

The Court today said that Arora's case will be heard on May 14. He has urged the Court to declare his arrest illegal.

Arora was arrested by the ED on May 9 in a money laundering case alleging bogus purchase and export of mobile phones by Hampton Sky Realty Limited. Arora was the Chairman and Managing Director of the company when the alleged offences took place, as per the ED.

A Special PMLA court in Gurugram on May 9 remanded Arora to ED custody till May 16.

The agency has alleged that the exports were without any actual movement of goods and were used as a conduit for remittance of foreign exchange from abroad to India. Arora has been accused of violating provisions of Foreign Exchange Management Act (FEMA).

Most of the suppliers of the company were dummy/fake entities not found be dealing in supply of mobile phones and merely provided accommodation entries to Hampton Sky, as per the ED.

Hampton Sky had allegedly reported a sale of mobile phone valued at about ₹157.12 crore during 2023-24 to local and overseas entities. Out of the total amount, the exports to the extent of ₹102.50 crore were made to two UAE-based entities, the ED has alleged.

Challenging Arora's custody, Bali submitted that he was challenging the remand order as well his arrest.

He said that the predicate offence registered under various provisions of the Bharatiya Nyaya Sanhita (BNS) by the Gurugram Police was based on a complaint made by the ED.

Bali alleged that despite Supreme Court's clear directions, the FIR was not uploaded by the police. The FIR was registered at 1:50 am without any preliminary inquiry, he added.

"This is draconian. You register an FIR and don't give copy? I have a screenshot of the portal of police, it says blocked," Bali told the Court.

Without waiting for any investigation by police, the ED registered a case under the prevention of Money Laundering Act (PMLA), Bali said further.

"It is absolutely illegal. It is absolute case of political vendetta," Bali argued.

Bali also argued that ED had to failed to take any similar action against MP Ashok Mittal, who recently joined the BJP.

"An absolute political orchestrate! Two FEMA raids are made. One against Shri [Ashok] Mittal; he defects, joins the ruling party, no arrest is made," Bali added.

On the allegations against Arora, Bali said entire transaction was made through cheque. The export was made with Custom clearance, he added.

Bali said Arora cannot be blamed just because the GST number of a vendor was not operational.

"How am I involved? They have not gone to those persons (whose GST numbers are not in operation)."

He went on to say that the Enforcement Case Information Report (ECIR) was not maintainable, adding,

"ED cannot investigate own FIR. Entire search operation and ECIR of ED is based on that FIR. There is no independent investigation."

Before the Court decided to hear the matter at 12:30 PM, Bali pleaded,

"There is a political vendetta battle which is happening in Punjab. Your lordships have protected two people (BJP MPs), I am only on the other side." 

When the matter was taken up again, Bali argued,

"Jurisdictional police has not even started. ED cannot start parallel investigation. Law in Arvind Kejriwal case is that you don’t have to necessarily arrest. It is highest case of political vendetta."

He went on to state,

"I am arrested at 7 AM. Grounds of arrest are given at 4 PM. I want to show this FIR is an absolute act of malice against me. Remand order has been passed mechanically by noticing the arguments of the ED and saying that whatever I've argued, cannot be [considered] at this stage. The complainant and prosecutor against me is ED. It is illegal in law."

The Court then said,

"We cannot go into veracity of allegations unless you challenge FIR." Bali replied,

"Law says otherwise."

After hearing the arguments till 1 PM, the Court said,

"It is 1 o’clock. We will have to hear you later. We can take it up on 14th."