Goods and Services Tax

Prosperous States for a Prosperous India – Speech by Dr. Poonam Gupta, Deputy Governor, Reserve Bank of India, delivered at the ‘Columbia Indian Economy Summit 2026’ at the Raj Centre on Indian Economic Policy at Columbia University on April 11, 2026
GST
Dated:- 12-5-2026

It is my pleasure to be here at the Columbia Indian Economy Summit, 2026. I would like to thank Prof. Arvind Panagariya for his kind invitation to me to speak on issues related to India's growth trajectory, both at the national and at the states' level.

My talk is in three parts. I will first present select salient features of the trajectory of economic growth of India over the past four decades, and what it bodes for the years to come. Then, I will present key characteristics of the states' respective growth trajectories. Finally, I will draw some inferences and implications from these observations for our quest to attain the status of a much more prosperous economy by 2047.

1. Salient feature

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mentation (MoSPI). Back series with 2011-12 base has been taken from Economic and Political Weekly Research Foundation (EPWRF), https://epwrfits.in/index.aspx (last accessed on April 10, 2026).

The acceleration is even more pronounced in per capita income (Figure 1). From about US$ 274 in 1981 and US$ 306 in 1991, per capita income has risen nearly tenfold to around US$ 2700 in 2024. Importantly, while it took over two decades for per capita income to double initially, it has expanded by almost fivefold in the subsequent two decades, indicating a clear structural shift in growth momentum. As per the forecasts in October 2025 World Economic Outlook (WEO) of the IMF, per capita income is projected to increase to US$ 2818 in 2025, US$ 3051 in 2026 and US$ 4346 in 2030.

Decline in population growth, too, has contributed to faster per capita income growth. India's population growth, once significantly above the global average, has steadily moderated and has converged to glob

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ce sheet repair, banks today are significantly stronger and better capitalized, both historically and relative to their peers.

On the fiscal front, while deficit and debt levels rose during COVID-19, India has retreated to a path of consolidation, with a clear focus on reducing deficits and stabilizing debt over the medium term.^3 There has been a distinct focus on enhancing the quality of fiscal outcomes, with a notable shift towards capital expenditure, thereby strengthening the growth potential of the economy (Government of India, 2026).

These improved outcomes are attributed to robust policy frameworks and nimble policy responses. India's policy frameworks have steadily evolved and today reflect global best practices, while remaining well-anchored in domestic realities. In fiscal policy, the Fiscal Responsibility and Budget Management (FRBM) framework has provided a rule-based path for fiscal management, while retaining flexibility to respond to shocks such as COVID

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well as in constant rupees terms, adjusted for inflation.

In the last two decades, average per capita incomes across states have surged nearly fivefold in current US dollar terms and more than threefold in constant rupees, underscoring the strength and sustained pace of India's long-term income gains (Table 2).

Table 2: Ratio of per capita GSDP in 2024-25 to 2003-04

States
Constant INR
Current USD

Sikkim
6.0
11.4

Telangana
4.5
7.9

Karnataka
3.9
6.7

Tamil Nadu
4.2
6.6

Uttarakhand
3.9
6.1

Andhra Pradesh
3.5
5.9

Arunachal Pradesh
2.7
5.8

Odisha
3.4
5.7

Haryana
3.3
5.6

Goa
3.3
5.5

Gujarat
4.0
5.4

Mizoram
4.3
5.3

Rajasthan
2.7
5.2

Madhya Pradesh
2.9
5.2

Bihar
3.0
5.1

Kerala
3.2
5.0

Tripura
3.9
4.9

Assam
2.8
4.9

Ma

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s. Some states have become five to ten times more prosperous over the last two decades, while others have recorded more modest gains of around three times. One strong correlate of the relative performance is their initial prosperity levels. Per capita income levels in more prosperous states have grown faster than in relatively less prosperous ones. The fact that richer states have experienced greater prosperity than the poorer states in the past, and that this trend has not reversed, implies that income levels across states have not been converging.

Notwithstanding this, the extent of divergence has weakened considerably over time (Figure 2a, 2b, and 2c). In other words, the growth gap between richer and poorer states has narrowed in recent years. The association between initial income and subsequent growth was positive and statistically significant (at 5 per cent level) during the decade of 1990s (Figure 2a). It became numerically smaller and less significant statistically in

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1.4

Above median
7.7
1.1

Notes: 1. Due to data unavailability, 2023-24 values are used for 2024-25 for Sikkim, Goa, Gujarat, Mizoram, Nagaland, and Manipur. 2. Based on real per capita GSDP in 2003-04, states were classified as above or below the median. Above-median states include Andhra Pradesh, Arunachal Pradesh, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Maharashtra, Punjab, Sikkim, Tamil Nadu, Telangana and Uttarakhand. Below-median states comprise Assam, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Rajasthan, Tripura, Uttar Pradesh, and West Bengal. 3. The unweighted average is presented. 4. Data for Telangana from the year 2003-04, including backcasted series, was sourced from EPWRF.

Source: MoSPI (Sourced from EPWRF) and staff calculations. 

While income convergence across states remains gradual, several other welfare indicators, most notably per capita consumption exp

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oward greater parity across states, irrespective of their initial income levels. This broad-based convergence is likely driven by sustained policy efforts, saturation levels in the richer states where further gains are numerically not feasible or are inherently harder to achieve, and rising demand in the poorer states that have been experiencing increases in their income levels.

Figure 4 (4a to 4h) illustrate these trends across a selection of key outcome indicators. Women's literacy rate (literacy rate per 100 women) has risen steadily over the decades while fertility rate (number of births per female) has declined sequentially (Figures 4a and 4b). Percentage of children who are not underweight has improved meaningfully, increasing from around 62 per cent in 2005-06 to close to 70 per cent in 2019-21 (Figure 4c). Infant survival rate, too, has also improved sequentially over the decades (Figure 4d).

Access to basic services has strengthened considerably across states with a

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are many other indicators where similar phenomenon is prominently visible.

It is equally important to note that convergence has not been universal across all enablers of growth and development. Data limitations make it difficult to establish this with full empirical precision, but interstate convergence appears limited for some of the structural variables, including the share of agriculture in state economies, the pace of movement out of agriculture, productivity growth, capital formation, FDI inflows, and bank credit growth. As per the patterns in these indicators, some of the drivers or correlates of growth are still showing divergence across states.

If the past rates of growth are maintained, many states will become or come close to becoming “rich” by 2047 (as per the prevailing international thresholds of prosperity). As a simple thought experiment, we calculate each state's average annual growth rate in per capita GSDP (in USD terms and again in constant INR) over

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, planned urbanization, attracting global and domestic talent, expanding market share both domestically and internationally, and actively taking part in shaping national frameworks on trade, FDI, and finance. For below-median states, priorities could include unlocking productivity in agriculture and reimagining the sector; building skills; integrating more in the national and international labour markets, complementing more advanced states, particularly in labour-intensive activities, emulating proven best practices nationally and internationally while developing niche strengths, and strengthening fiscal capacity to support faster growth.

Accelerating growth would require a clearer acknowledgement and more effective use of the distinct policy roles available to the centre and the states respectively.

Many macro policies are formulated at the national level. These include monetary policy; financial sector regulation covering banks, non-bank financial institutions; development of e

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y, and how equitably that prosperity would be shared across its states and its people.

The pace of income divergence has weakened considerably with the growth gap between richer and poorer states narrowing over successive decades. Meanwhile convergence has been faster and more decisive across a wide set of welfare and development indicators: per capita consumption expenditure, literacy, nutrition, access to basic services, financial inclusion, and a range of health and gender outcomes. Lagging states are catching up, and the distribution of wellbeing across India is becoming more equal.

Looking ahead, if growth trajectories of the past two decades are sustained, the average state per capita income could approach high-income thresholds by 2046-47. Crucially, below-median states are projected to contribute substantially to this expansion, reinforcing the broad-based nature of India's growth story. Realising and accelerating the path to this potential, however, would require moving

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tudies).

International Monetary Fund (2025). World Economic Outlook, October.

Panagariya, Arvind (2010). India on the growth turnpike: No state left behind, Columbia Program on Indian Economic Policies Working Paper No. 2010-1.

Reserve Bank of India (2025). Financial Stability Report, December.

–

^1 Speech by Dr. Poonam Gupta, Deputy Governor, Reserve Bank of India, delivered at the 'Columbia Indian Economy Summit 2026' at the Raj Centre on Indian Economic Policy at Columbia University on April 11, 2026. Inputs provided by Asish Thomas George, Somnath Sharma, and Shivam are gratefully acknowledged.

^2 This section draws on Gupta (2026).

^3 India's public debt remains sustainable. As noted by Eichengreen, Gupta, and Ahmed (2024), its structure-predominantly domestic, long-term, and rupee-denominated-mitigates rollover and currency risks, and under most assumptions, the debt-to-GDP ratio is expected to decline gradually.

^4 See Panagariya (2010

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Speaking and reasoned order required where assessment ignored taxpayer's reply and supporting documents
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The High Court set aside the impugned assessment order because the authority had not considered the petitioner's reply and supporting documents filed in response to the show cause notice. It held that the objections and material had to be examined afresh, and that the competent authority must pass a speaking and reasoned order in accordance with law. The matter was therefore remitted for fresh consideration on the admitted procedural footing that the earlier order was made without addressing the petitioner's submissions and evidence.
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GST refund on rejected seed sales: tax not payable, retention impermissible, and refund to follow prescribed Form RFD-01 procedure.
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GST
GST collected on the sale of rejected wheat and paddy seeds was treated as refundable because GST was not payable on those transactions, and that foundational position was not disputed. The Court held that the department could not continue retaining the tax merely because the refund had not yet been processed. It also required compliance with Rule 89 by directing the Corporation to file the refund claim in Form RFD-01, after which the department was to refund the amount forthwith for onward payment to the petitioner by the Corporation.
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GST assessment orders without a DIN were invalidated, and delayed writ relief was entertained subject to partial tax deposit.
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Absence of a Document Identification Number in GST assessment orders was treated as an inherent defect that invalidated the orders, following prior High Court rulings. The impugned orders were set aside and the matter was remanded to the Assessing Officer for fresh adjudication after giving the taxpayer an opportunity of hearing. On the delay objection, the Court noted the controversy over service through the GST portal and the practical difficulties in accessing portal-served orders, and held that a delayed writ could still be entertained where the orders disclosed a patent irregularity. Relief was granted subject to deposit of 20% of the disputed tax, with issues on merits left open.
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Unsigned GST assessment orders are inherently defective; delayed writ relief may be entertained with partial tax deposit and remand.
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An unsigned assessment order under GST was treated as patently irregular and inherently defective because a signature on the assessment order is mandatory, and the defect was not cured by the statutory provisions relied upon. Although delay and portal service were raised as objections, the court proceeded on the basis that the order itself was defective and held that delayed writ petitions against such orders may be entertained on condition of deposit of 20% of the disputed tax. The unsigned assessment was set aside, the matter was remanded for fresh adjudication after hearing the taxpayer, coercive recovery steps were lifted, and recoveries already made were to be adjusted.
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Ex parte assessment and late fee liability remitted for fresh consideration after conditional deposit and reply to notice.
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An ex parte assessment was challenged on the ground that it was passed without a reply to the show cause notice. The HC noted that, in light of the earlier decision in Ms. Kandan Hardware Mart, the petitioner had no case on liability to pay late fee. As the petitioner consented to deposit 25% of the disputed tax and the entire late fee, and to file a reply with supporting documents, the Court accepted that course, treated the assessment order as an addendum to the show cause notice, and remitted the matter for fresh consideration on merits. If the deposits are not made within the time fixed, recovery may proceed in accordance with law.
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Rule 86A cannot be used for negative blocking of the electronic credit ledger; blocked credit must be restored.
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GST
Rule 86A is confined to blocking input tax credit only up to the credit available in the electronic credit ledger and does not authorise negative blocking. The text notes that the power must be exercised only after satisfying the statutory preconditions, including a reason to believe and recorded reasons, because otherwise the invocation is vulnerable to challenge on natural justice grounds. Applying that position, the impugned blocking beyond the available balance was held unsustainable, and restoration by unblocking to the extent blocked was directed, while all other issues were kept open.
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Composite GST notices, mandatory limitation, and same-subject bar: HC upheld valid notices but quashed overlapping proceedings and unauthorised withholding.
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Adjudication under Sections 73 and 74 is dispute-based and is not confined to a single financial year or tax period; a composite notice may validly cover multiple periods, and under Section 74 may include multiple noticees, subject to objections in individual proceedings. However, Section 6(2)(b) bars parallel proceedings on the same subject-matter once formal adjudication has begun, so overlapping proceedings were held unsustainable. The statutory timelines for issuing notice and passing the adjudication order were treated as mandatory, making notices issued without the prescribed lead time time-barred. One notice could not support separate orders by different authorities absent lawful transfer, and a direction to withhold payment was set aside for lack of statutory authority.
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Coursera user licences classified as licensing services, not education service, so the exemption was denied.
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GST
Supply of Coursera user licences was held not to be an education service because the applicant only granted access to proprietary digital content and did not impart education, provide faculty, control curriculum, or assume instructional responsibility. Applying the specific-description principle, the supply was classified as a licensing service under Heading 9973, specifically SAC 997331, rather than Heading 9992 or Heading 9984. Because the supply was not an education service, the exemption under Sl. No. 72 of Notification No. 12/2017-Central Tax (Rate) was held inapplicable.
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Restaurant service GST includes packaged drinking water value; 5% rate applies if input tax credit is not availed.
Case-Laws
GST
Packaged drinking water supplied with food in a restaurant is treated as part of composite restaurant service, so its value forms part of the transaction value even if billed separately. On that basis, GST applies at 5% to the total invoice value for restaurant service, subject to the condition that input tax credit on goods and services used in supplying the service has not been availed. The text also explains that the hotel premises will not be treated as “specified premises” where the previous financial year's room value does not exceed Rs. 7,500 per unit per day, with the result that the concessional restaurant rate continues to apply.
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India has sufficient fuel stocks, no rationing planned, says oil ministry official
GST
Dated:- 11-5-2026
PTI
New Delhi, May 11 (PTI) India has no plans to ration fuel supplies despite ongoing disruptions in global energy markets, a top oil ministry official said Monday, adding that the country has maintained adequate inventories of crude products and LPG while diversifying imports to manage supply risks.

“There is no need to panic. There are sufficient supplies. There is no rationing in place. It's not going to happen,” Oil Secretary Neeraj Mittal said at CII's Annual Business Summit here, noting that India had maintained around 60 days of fuel stocks and about 45 days of LPG inventories during the past 67 days of market dis

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ault mode of the government is to keep the prices and supplies stable.

Mittal said the government had secured additional energy cargoes, increased procurement from existing suppliers and absorbed part of the price shock through fiscal measures, including excise duty cuts on petrol and diesel.

India, the world's third-largest oil importer and consumer, was also accelerating efforts to expand domestic exploration, strategic reserves and alternative energy programs including green hydrogen, ethanol blending and sustainable aviation fuel, he said.

“For a country like India which consumes 5 million barrels a day, to have a 90-day reserve would be putting a lot of money in a box without using it at all,” he said, adding that the gover

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pt us going in terms of supply management in the short run,” he said.

The official said India's large refining base had helped cushion the impact of supply shocks, allowing the country not only to meet domestic demand but also continue exports of refined petroleum products.

He said the government had also undertaken calibrated demand-management measures, including prioritising LPG supplies for household cooking use and allowing 70 per cent industrial LPG supply after industry requests for easing restrictions.

Mittal said nearly 100 per cent digital delivery tracking of LPG cylinders had significantly reduced diversion and black-market sales.

“There is no need to panic. There's sufficient supplies. There is no rationing in pl

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CBI Apprehends CGST Superintendent, Balasore, Odisha in Bribery Case
GST
Dated:- 11-5-2026

The Central Bureau of Investigation (CBI) has apprehended the Superintendent, CGST, Balasore, Odisha, while accepting the bribe  of Rs. 50,000 from the complainant.

 The CBI registered the instant case on 08.05.2025, against the said accused on the basis of a complaint. It was alleged that the accused Superintendent and Assistant commissioner, CGST, Balasore, Odisha demanded bribe

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Export of services confirmed for university consultancy work; incidental student support did not make the supplier an intermediary.
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GST
Indian entity's education consultancy, marketing and recruitment support for foreign universities was held to be export of services, not intermediary service under the IGST Act. The decisive test was whether the contractual recipient and payer were the foreign universities and whether the supplier acted on its own account. Because the entity contracted with the universities, invoiced them, received consideration from them, did not charge students, had no authority to bind the universities, and could not guarantee admissions, incidental assistance to students in India did not convert it into an intermediary. The refund rejection was set aside and the refund was directed to be processed with statutory interest.
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Proceedings against a non-existent amalgamated company are void; section 87 cannot validate post-merger GST action.
Case-Laws
GST
Once an amalgamation scheme is approved, the amalgamating company ceases to exist in law, so proceedings continued in its name are without jurisdiction. The Court held that, after intimation of amalgamation and cancellation of registration, a show cause notice and adjudication order issued against the erstwhile entity are void. Section 87 of the CGST Act applies only to the limited intervening period it contemplates and does not authorise proceedings against a non-existent entity after amalgamation. Participation by the taxpayer and the availability of other lawful remedies did not cure the jurisdictional defect, and the GST order was quashed while other contentions were left open.
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Natural justice in revocation of registration proceedings requires a fair chance to reply before a fresh order is made.
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GST
The High Court set aside the order rejecting revocation of cancellation of registration after finding that the petitioner should be given an adequate opportunity to respond to the show-cause notice in the revocation proceedings. It did not decide whether the original time granted by the authority was sufficient on merits; instead, it applied natural justice and directed that the petitioner be allowed to file objections within the time fixed by the Court. The authority was then required to consider those objections and pass a fresh order.
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Unsigned assessment orders are invalid; writ delay may be excused for patent defects, with remand after hearing.
Case-Laws
GST
An assessment order must bear a signature, and an unsigned order is invalid. The High Court also recognised practical difficulties in accessing orders uploaded on the portal and held that delay in invoking writ jurisdiction can be overlooked where the assessment suffers from a patent irregularity, while balancing taxpayer hardship against revenue protection. The unsigned assessment orders were set aside and the matter was remanded for fresh assessment after hearing, subject to deposit of 20% of the disputed tax, adjustment of amounts already paid or recovered, and exclusion of the writ period for limitation.
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Parallel GST proceedings on the same subject matter must be coordinated to avoid multiple adjudicatory processes.
Case-Laws
GST
Parallel State and Central GST proceedings on the same subject matter are to be avoided in line with the Supreme Court guidance in Armour Security. The assessee must place its objection before the authorities by responding to the show cause notice and related communications, asserting that the proceedings overlap. The State and Central authorities are to verify the claim inter se and coordinate so that the assessee is not subjected to multiple adjudicatory processes on the same matter. The High Court declined to examine the validity of the notice or summons on merits and kept all rights and contentions open.
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Jurisdictional defect in assessment where the same officers issued audit observations and later passed the ex parte orders.
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GST
The High Court held that an officer who had earlier issued audit observations could not thereafter pass the ex parte assessment order on the same matter. As the impugned adjudication orders were made by those very officers, the Court found the assessment to be without proper jurisdiction and quashed both the adjudication orders and the consequential recovery proceedings, including bank attachment. The matter was remitted to a proper officer for fresh consideration from the stage of reply to the show-cause notices.
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Ex parte tax adjudication quashed for lack of hearing and non-speaking order; matter remitted for fresh adjudication.
Case-Laws
GST
Ex parte tax adjudication was set aside where the assessee had not been given a reasonable opportunity of hearing and the order was not reasoned. The HC followed earlier coordinate Bench rulings, quashed the impugned orders, and remitted the matter for fresh adjudication by a proper officer other than the original officer from the stage of reply to the show-cause notice. Liberty was granted to file additional material, and the authority was directed to afford a reasonable hearing and pass a speaking order.
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Strict construction of penalty provisions bars penalty for lower-rate sales tax payment without any turnover mismatch.
Case-Laws
GST
Penalty for short-payment of additional sales tax was held not to be attracted where the dispute concerned only the applicable rate and there was no suppression or variation in turnover. Because the turnover returned and the turnover assessed were identical, the case did not amount to an incorrect or incomplete return within the meaning of the penalty provision. The Court also applied strict construction to penalty statutes and held that Section 12(3)(b) did not authorise penalty merely because tax was paid at a lower percentage. The appellate authority's deletion of penalty, affirmed by the Tribunal, was upheld and the State's revision was dismissed.
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Parallel GST proceedings barred only for the same distinct infraction; assessment quashed for failure to examine overlap.
Case-Laws
GST
The statutory bar on parallel proceedings under the GST law applies when the later action concerns the same subject matter, meaning the same distinct infraction, tax liability or obligation, not the year or return in general. Applying this principle, the High Court found that the assessment and rectification orders were unsustainable because the authority did not clearly determine whether the transactions covered by the earlier Central proceedings were being omitted from the State action or whether the State case involved separate infractions. The orders were quashed and the matter remanded for fresh consideration with a transaction-wise examination of overlap and exclusion of matters already covered by the Central authorities.
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Rs 1,600-1,700 cr a day, Rs 1 lakh cr in 10 weeks: Cost of insulating India from global energy shock
GST
Dated:- 10-5-2026
PTI
New Delhi, May 10 (PTI) About Rs 1,600-1,700 crore per day, over Rs 1 lakh crore in 10 weeks. That's the cost that state-owned oil firms incur for insulating Indian consumers from the global energy shock but ever-widening losses are now raising questions on how long they can continue bearing the cost without financially capitulating.

Since the war broke out in the Middle East 10 weeks ago, state-owned oil marketing companies (OMCs) have ensured uninterrupted supplies of petrol, diesel and cooking gas LPG at rates that are way below cost, unlike many global energy systems that imposed rationing or pass

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es were raised in March by Rs 60 per cylinder, but they are still way lower than the actual cost.

The revenues that OMCs earn from selling fuel are the only source that is used by them to buy crude oil (raw material), build infrastructure to process it into fuel and lay a network to take the product to consumers.

For 10 weeks, the OMCs have managed to insulate the Indian market but now the cost is visible, sources said adding they may have to borrow more to meet the working capital requirement (buying of crude oil).

“If elevated crude prices persist for an extended period, OMCs may require higher working capital borrowings and calibrated reprioritisation of some capex timelines,” a source said. “However, strategic investments in re

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come inevitable, but the timing and quantum of increase have to be decided by the government..

While countries from Japan to the United Kingdom have raised petrol and diesel prices by up to 30 per cent since the start of the West Asia conflict, fuel prices in India continue at two-year-old levels.

This despite the war disrupting India's import of 40 per cent of crude oil (raw material for making petrol and diesel), 90 per cent cooking gas LPG and 65 per cent natural gas (used to generate electricity, make fertiliser, turned into CNG and piped to household kitchens for cooking).

While the three OMCs have worked overtime to keep the supply lines running even when demand spiked due to panic buying, the government intervention inclu

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Punjab minister Sanjeev Arora sent to 7-day ED custody
GST
Dated:- 10-5-2026
PTI
New Delhi/Gurugram, May 10 (PTI) A court in Gurugram has sent Punjab's Industries Minister Sanjeev Arora to seven days of ED custody in a money laundering case, officials said on Sunday.

Arora, 62, was arrested on Saturday evening from his official residence in Chandigarh by the Enforcement Directorate (ED) in a GST fraud case following raids against him.

The central agency had also searched the premises of a company linked to Arora, Hampton Sky Realty Ltd, in Gurugram. The company said it had faith in the legal process and was fully cooperating with all the statutory authorities.

Arora was brought by the ED sleuths to Gurugram, Haryana, fr

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After ED raid, Hampton Sky Realty says company cooperating with statutory authorities
GST
Dated:- 9-5-2026
PTI
Chandigarh, May 9 (PTI) Hampton Sky Realty Limited, in which Punjab minister Sanjeev Arora served as a director, on Saturday said the company has faith in the legal process and is fully cooperating with all the statutory authorities and will continue to do so.

“All relevant facts, documents and verifiable records will be placed before the appropriate fora in due course of law. The company has complete faith in the facts of the case, in the integrity of its statutory records, and in the wisdom of the judiciary. It is confident that the truth will prevail,” said a statement issued by Hampton Sky Realty on Saturday evening.

The statement came after the Enforcement Directorate (ED) on Saturday arrested Punjab industries minister Sanjeev Arora following a series of raids in connection with a Rs 100 crore money laundering probe linked to alleged fraudulent GST

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s of mobile phones worth more than Rs 100 crore and subsequent exports to “round trip” alleged illegitimate funds from Dubai to India, according to the ED.

The ED has alleged that multiple fake GST purchase invoices were acquired from “non-existing” firms in Delhi to falsely claim input tax credit.

In the statement, Hampton Sky Realty said, “With reference to the recent developments concerning the proceedings of the Enforcement Directorate, the company places on record the following factual position. The company reposes complete faith in its established facts, and in the legal and constitutional framework of the country…” The statement said that recognising mobile phone exports as a thrust sector by the government of India, the company entered the cellphone export business in May 2023.

During the export period, the company exported 44,471 units of branded handsets and accessories, the statement said.

“Every export was verified at multiple statutory stages by in

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ing to a small number of the company's domestic suppliers. These transactions constitute only a small percentage of the company's total mobile phone procurement and are entirely on the supplier side.

“The company made all payments to suppliers through banking channels with GST duly charged, filed its GST returns regularly, and reflected all transactions on its books,” the statement said.

It also claimed that on its own initiative, when the supplier-side fraud came to the company's knowledge, it approached the police as the complainant by lodging an FIR on May 17, 2025, in Ludhiana against the said suppliers.

“The company is the victim of the alleged supplier-side fraud, and it proactively reported the matter to law-enforcement authorities approximately one year ago, well before any investigative pressure,” the statement said.

It added that where the GST authorities raised concerns regarding input tax credit, the corresponding GST amount was already deposited by the co

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ED arrests Punjab minister Sanjeev Arora in fresh PMLA case: AAP hits out at Centre
GST
Dated:- 9-5-2026
PTI
New Delhi/Chandigarh, May 9 (PTI) The Enforcement Directorate on Saturday arrested Punjab industries minister Sanjeev Arora following raids in connection with an alleged Rs 100 crore GST fraud-related money laundering case involving certain entities linked to him, officials said.

AAP chief Arvind Kejriwal and Punjab Chief Minister Bhagwant Mann condemned the ED action, accusing the Centre of using agencies like the ED and the CBI as “weapons” to scare opposition leaders into joining the BJP. But the BJP hit back, saying AAP supremo and his party are rattled as they know that “their days are numbered in Punjab”.

According to officials, Arora (62) was taken into custody under the Prevention of Money Laundering Act (PMLA) following early morning raids at his official residence in Chandigarh. They claimed that the minister was “non-cooperative” during the investi

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he civil provisions of the Foreign Exchange Management Act (FEMA), and on April 19 it provisionally attached movable and immovable assets of Hampton Sky Realty Ltd, its director Arora, and entities linked to him for alleged FEMA violation through bogus sales and exports to the tune of Rs 157.12 crore.

Arora was in June 2025 elected as Aam Aadmi Party (AAP) MLA from the Ludhiana West assembly seat. He was serving as a Rajya Sabha MP when the party leadership selected him to contest the assembly by-election following the death of the sitting MLA.

The latest probe (under the PMLA) pertains to “fake” GST purchases of mobile phones worth more than Rs 100 crore and subsequent exports to “round trip” alleged illegitimate funds from Dubai to India, according to the ED.

The ED alleged that multiple fake GST purchase invoices were acquired from “non-existing” firms in Delhi to falsely claim Input Tax Credit (ITC).

Arora was already under investigation in a money laundering case,

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olls early next year.

In recent weeks, the ED has taken significant actions against politically connected individuals in Punjab, which is due to go to the polls in early 2027.

In a Hindi post on X, Kejriwal alleged, “Modi ji has got daily ED raids started in Punjab soon after the Bengal polls concluded. Modi ji has coerced Punjab in the last few years and ill-treated Punjabis by different means.” Kejriwal said AAP Rajya Sabha MP Ashok Mittal joined the BJP after raids by the ED at his premises. Arora was also raided, but did not join the BJP; so another raid has been conducted, he alleged.

The agency had raided the premises of Lovely Group promoter and Rajya Sabha MP Ashok Mittal, who defected to the BJP along with six other AAP MPs.

Earlier this week, the agency conducted raids against various Punjab builders and real estate companies, as well as an alleged associate of an AAP functionary.

It also levelled allegations against Punjab AAP President and Cabinet Mini

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