The Enforcement Directorate's money laundering investigation into former Punjab minister and Aam Aadmi Party (AAP) leader Sanjeev Arora has now widened to examine how industrial land was allegedly turned into a real estate goldmine. Investigators are examining how land handed out at concessional rates for setting up industry was instead used to build residential and commercial projects, generating hundreds of crores of rupees in alleged illegal earnings. According to ED sources, the Punjab government had allotted this land specifically for setting up industry at a subsidised rate, and the company also received several other exemptions along the way.
At the centre of the probe is Hampton Sky Realty Limited, formerly known as Ritesh Properties and Industries Ltd. (RPIL). The ED alleges that the company developed residential and commercial projects on the land without adhering to the conditions attached to the original allotment, even though several conditions had to be fulfilled before doing so.
Terms of the 2009 Agreement Allegedly Broken
The investigation has found that the Punjab government and RPIL signed an agreement on September 10, 2009. That agreement clearly stated that industry would first be set up on the land, and that at least 50 percent of the industrial plots would need to be sold before anything else could proceed. The ED alleges that the company began real estate activity on the land without fulfilling these conditions. Investigators are now trying to establish exactly how the terms governing industrial use of the land were changed, and which government officials or other individuals played a role in that change. The agency believes that altering such conditions without proper approval is itself a serious irregularity that needs to be fully unravelled.
Alleged Collusion With GLADA and RERA Officials
According to the ED, the company obtained permission to develop and sell residential and commercial units through alleged collusion with officials of GLADA and RERA. Investigators are also examining whether the RERA registration required for an industrial park was actually obtained at all. The allegation is that industrial plots were advertised and sold without the necessary registration. The ED says this process is what allegedly generated the proceeds of crime, which were then funnelled through various channels.
Tracing the Network From Land Allotment to Final Sale
The agency is now examining the entire network stretching from the original allotment of the land to the eventual sale of plots and properties. Besides people linked to the company, the role of government officials who allegedly helped alter the conditions and clear approvals is also under the scanner. The ED is trying to identify everyone else involved in the alleged scheme and the benefits they may have drawn from it, piecing the chain together link by link to reach those actually responsible.
Possible Link to the Rs 100-Crore GST Fraud Case
Sanjeev Arora was arrested by the ED on May 9, 2026, in connection with a GST fraud and money laundering case involving more than Rs 100 crore. According to the agency, he is accused of using fake invoices and shell companies to show fraudulent exports of iPhones to Dubai, and of round-tripping funds through this route. The ED is now trying to establish whether the alleged land-related transactions in this case have any direct connection to the GST fraud probe that is already under way. If such a link is established, it could point to a much larger and more organised economic crime network.
