After the ED arrested Arora, the industries and power minister, in Chandigarh for an alleged GST and export fraud, Raghav Chadha is now seriously questioning AAP’s focus on “Punjabiyat”. The BJP member of parliament says this is a moment where the ruling party in Punjab has to prove it’s trustworthy, and warns of political problems before the next state assembly elections.
Political attack reframes AAP’s Punjabiyat
Chadha has stated that AAP has changed Punjab from a vibrant “Rangla” (colorful) place to a “Kangla” (desolate) one, and betrayed voters. He has mentioned reports from the search of Arora’s places, saying that 21 lakh rupees in cash were thrown from a balcony in a bag, and roughly 100 crore rupees were moved around in a circular way to look like different transactions.
In a video, he said AAP has essentially stolen money from Punjab’s government funds and undermined Punjabi identity. Seven members of parliament who left the party had previously warned that AAP was being run by dishonest and easily influenced people, and Chadha believes the voters will have the final say.
What the ED is probing
The ED arrested Arora, who is 62, under the Prevention of Money Laundering Act after searching many places in Punjab, Chandigarh, and Haryana. Officials say he wasn’t cooperating and said he will be brought before a local court where the ED will ask to keep him for questioning.
The investigation is about 157 crore rupees of GST and export fraud. Investigators say companies that don’t really exist in the Delhi-NCR area created fake bills to get an input tax credit and refunds on exports of mobile phones. 102.5 crore rupees of this went through two shell companies based in the UAE.
This action follows earlier temporary freezes of Arora’s and Hampton Sky Realty’s bank accounts, stock holdings, and property, all related to issues with foreign exchange and taxes. On Saturday, the searches included Hampton Sky Realty Ltd in Udyog Vihar, Gurugram, and two properties in Delhi. This is the third time in less than a year, and the second time in just one month, that the ED has searched Arora’s places.
Why Chadha’s break with AAP matters now
Chadha’s criticisms are more meaningful because he left AAP in April to join the BJP, along with six other MPs. He says he spent 15 years with the party, but left because of a ‘harmful work atmosphere’ where speaking up about problems was ‘shut down’.
Ashok Mittal, Harbhajan Singh, and Swati Maliwal were among those who also left. Their leaving has raised questions about the direction AAP is going in before the Punjab elections next year, especially after the party, which used to completely control Delhi for eleven years, was soundly beaten by the BJP in t he 2025 elections.
The ED’s actions give the BJP a new opportunity to criticize how AAP governs Punjab. For AAP, the arrest of a minister in their cabinet brings even more attention to their internal checks and the political messages they send about being honest and effective.
Here are the immediate stakes for Punjab politics:
– ED custody could keep a cabinet minister sidelined
– BJP leverages corruption narrative against AAP
– AAP’s governance claims face intensified scrutiny
– Voters weigh probe outcomes before next Assembly elections
Raids and reactions broaden the fallout
On Saturday, the searches happened at more than a dozen locations: Arora’s home and the offices of Hampton Sky Realty Limited, and the homes of people connected to him. The large scale of the operation shows how much the ED is looking into the alleged circular movement of money and the use of fake companies.
Chadha has made people even more angry by mentioning reports of cash being thrown from a balcony and funds supposedly going around in circles through complicated routes. He says these events will prove whether AAP can actually provide honest government in Punjab.
What comes next
Arora will likely go to court, and the ED will probably ask the court to allow them to continue to investigate where the money went. More action under the Prevention of Money Laundering Act could happen as investigators trace the fake bills, refunds, and connections to accounts overseas.
Chadha believes that law enforcement will do their job, but the most important response will come from the voters. Now that 157 crore and 102.5 crore rupees are central to the discussion, the fight over “Punjabiyat” might depend on which party can convince the voters that they can safeguard the state’s money.
