3 min readNew DelhiMay 10, 2026 11:11 AM IST
To get custody of AAP Punjab minister Sanjeev Arora, former chairman and managing director of Hampton Sky Realty Limited (HSRL), the Enforcement Directorate (ED) has alleged in court that his company procured mobile phones from various domestic entities using bogus invoices without actual goods supply, and many suppliers were either non-filers of Income Tax Returns or reported negligible income.
The ED arrested Sanjeev Arora Saturday following searches at five premises in Delhi, Gurgaon, and Chandigarh linked to him and his company. “(Sanjeev) Arora, in connivance with others, generated proceeds of crime worth Rs 102.5 crore through purported exports and bogus purchases, forging documents to claim GST refunds and causing loss to the state exchequer,” the ED stated in its remand application.
The ED sought custodial remand after a search and seizure operation on April 17 at HSRL premises (earlier known as Ritesh Properties and Industries Ltd) and others, under FEMA, 1999, provisions.
“Searches revealed sales of mobile phones worth approximately Rs 157.12 crore from May 12, 2023, to October 27, 2023 (FY 2023-24) to local and overseas entities,” the ED alleged.
Of this, exports worth Rs 102.50 crore went to two UAE-based entities. “Investigation of the supply chain showed many suppliers were non-existent, shell, or dummy firms lacking financial capacity. They issued bogus invoices without supplying goods and were often non-filers of IT returns, reported negligible income, or had their GST registration deregistered/suspended shortly after starting operations,” it alleged.
Searches on April 17 also covered the residence of Sanjeev Arora’s son, Kavya Arora, the current managing director of HSRL. His statement revealed he joined the company in 2013 and became MD in 2025.
“Kavya stated the company began exporting mobile phones to Middle East countries from 2022, while primarily handling realty business. Phones were sourced locally in India. He said his father managed the export operations, which stopped in 2024 due to lack of profits,” the ED said.
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According to the remand application, Kavya Arora claimed his father made final decisions on quantities and sources for mobile phone purchases, with instructions executed by Chief Financial Officer Deepak Sharma. “Kavya denied knowledge of export details, stating he focused solely on the realty business,” it added.
The court granted ED the custody of Sanjeev Arora for seven days.
