Key Facts
A special PMLA court in Chandigarh has rejected the bail application of Himachal Pradesh minister Sanjeev Arora, who was arrested by the Enforcement Directorate (ED) last month in connection with a money laundering case stemming from an alleged ₹100 crore GST fraud. The court, in its order dated June 15, 2026, observed that the petitioner does not deserve the concession of bail at this stage as he may make efforts to tamper with the evidence.
Details of the Case
The 62-year-old minister was taken into custody on May 9, 2026, following ED raids at his official residence in Sector 2, Chandigarh. The ED had registered a case under the Prevention of Money Laundering Act (PMLA) based on a GST fraud involving entities linked to Arora.
During the bail hearing, the ED counsel argued that granting bail would hamper the investigation. The court order noted: "During arguments, the counsel for ED submitted that the investigation is still pending and in case of grant of bail at this stage, the petitioner will make his best efforts to tamper with the evidence."
Evidence of Tampering
The ED presented evidence that a person whose statement was recorded under Section 50 of PMLA was taken to an advocate's office to prepare an application to retract his statement. Two individuals related to the petitioner transferred ₹35,000 as counsel fee to the advocate via GPay. However, the application was not moved after legal advice from another counsel.
The court examined screenshots of the GPay transaction and the case diary maintained by the investigation officer. It concluded: "After considering the evidence, 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."
Impact on Himachal Government
Sanjeev Arora held the portfolios of power, industry, and commerce. Following his arrest, the Chief Minister redistributed these portfolios to other ministers. The case has raised political questions in the state, though the government has maintained that it will not interfere with the legal process.
What Readers Should Know
- The bail denial is a significant setback for Arora, who remains in judicial custody.
- The ED investigation is ongoing, and further arrests or charges are possible.
- The case highlights the ED's crackdown on alleged GST fraud and money laundering in Himachal Pradesh.
Frequently Asked Questions
Why was Sanjeev Arora arrested?
He was arrested by the Enforcement Directorate in connection with a money laundering case linked to an alleged ₹100 crore GST fraud involving entities associated with him.
What did the PMLA court rule?
The court dismissed his bail application on June 15, 2026, stating that he may tamper with evidence and that the investigation is ongoing.
What evidence did the ED present?
The ED showed that a witness was taken to a lawyer's office to retract his statement, and two associates transferred ₹35,000 as counsel fee via GPay.
What portfolios did Sanjeev Arora hold?
He held the portfolios of power, industry, and commerce in the Himachal Pradesh government.