Bogus mobile export: ED attaches Rs 55 crore flats in Ludhiana, Gurugram, FDs

India's financial watchdog, the Enforcement Directorate, has clamped down hard on a massive mobile phone export fraud, attaching assets worth a staggering Rs 55.57 crore across Ludhiana, Gurugram, and Chandigarh. The action targets properties linked to former Punjab minister Sanjeev Arora and his real estate firm, Hampton Sky Realty Limited (HSRL), in a case involving a sophisticated scheme of 'bogus export' and alleged money laundering. This isn't just about flashy flats; it's about a deep-rooted financial deception. The ED probe revealed HSRL, primarily a real estate player, cooked up fictitious mobile phone export sales totaling Rs 157 crore in FY 2023-24, with over Rs 102 crore allegedly shipped to two UAE-based entities controlled by the same group. Investigators found that HSRL sourced these 'mobile phones' from a web of shell companies, generating bogus invoices and 'accommodation entries' without any actual goods changing hands. This elaborate charade was designed to claim illicit zero-rated GST refunds and Input Tax Credit, turning black money into seemingly legitimate funds. Sanjeev Arora, who was the Chairman and Managing Director of HSRL, was arrested in May and is currently in judicial custody, signaling the seriousness of the charges under the Prevention of Money-Laundering Act. With the total 'proceeds of crime' in this case quantified at Rs 102.99 crore, the ED provisional attachment of assets is a crucial step to recover these ill-gotten gains and deter financial fraudsters. The investigation is still ongoing, with local sales also under scrutiny, suggesting that more revelations and attachments could be on the horizon. This crackdown underscores India's intensifying battle against economic offenses and sends a clear message that those attempting to defraud the system, especially through complex trade-based money laundering, will face severe consequences.