Punjab ex-min kingpin of fake iPhone export scam: ED chargesheet

NEW DELHI: ED has filed a chargesheet against former Punjab cabinet minister and AAP neta Sanjeev Arora, accusing him of being the kingpin of a fake iPhone export scam where consignments were falsely shown to have been sent to Dubai using bogus purchase bills and export documents to launder Rs 103 crore.Arora has been in judicial custody since his arrest by ED on May 9. His bail plea has been rejected by a Gurgaon court and an appeal is pending before Punjab and Haryana HC.The prosecution complaint, filed before a special court in Gurgaon on July 6, is learned to have details of how around Rs 100 crore was allegedly passed off as money received from Dubai for export of iPhones. It consisted of "export remittance" of Rs 87 crore and Rs 16 crore in IGST and duty drawback refund.The agency has alleged that "sham export transactions" were structured through fictitious procurement, related overseas buyers and circular fund movement. The total quantum of alleged iPhone sales has been estimated at over Rs 150 crore, of which over Rs 100 crore worth were exported to a Dubai-based company which is an investor in Arora's realty firm, sources said.ED has attached assets linked to the AAP politician and his realty firm, Hampton Sky Realty Ltd, worth over Rs 55 crore.

This includes bank accounts, fixed deposits, land, commercial premises and residential apartments in Ludhiana, Gurgaon and Chandigarh. An account in ICICI Bank that received over Rs 100 crore of export proceeds has Arora as its signatory, says the chargesheet.The agency has made Arora accused No. 1 in its chargesheet. The probe is based on an FIR registered against him and Hampton Sky Realty Ltd by Udyog Vihar police in Gurgaon on April 18.

Searches have been conducted on premises linked to the former minister and associated entities.Also being probed are two Dubai-based firms, Fortbel Telecom FZCO and Dragon Global FZCO, which had allegedly received the iPhone consignments and made remittances to Arora's firm in India.A senior official said ED's investigation revealed that the purchase of iPhones was made by "non-existent, shell, dummy, or financially incapable supplier entities". These shell entities allegedly generated bogus invoices without actual supply of goods. Many of them had common phone numbers and email IDs showing a "coordinated operation".