Days after the arrest of AAP senior minister Sanjeev Arora in a money laundering case, the Directorate of Enforcement has issued a notice to the Chairman-cum-Managing Director of Punjab State Power Corporation Limited, in an alleged case of returning of bank guarantee worth crores to a company associated with Arora.Official Sources confirmed that the Enforcement Directorate has issued a notice to the CMD, PSPCL, Basant Garg, and Director (Commercial) Harsharan Kaur Trehan asking them to produce on Monday the record related to the alleged favour extended to the company, Ritesh Properties and Industries Limited.Rs 1.97 crore refundedA bank guarantee amounting to Rs 1.97 crore was allegedly refunded to the company by the state power utility, while Arora held the charge of Power Minister.“The PSPCL will provide the records to the ED,” CMD, PSPCL, Basant Garg, told The Tribune. The officials would take the records to the ED office, as desired, he added.“Besides, the two above-mentioned officers, close associates of Arora, Hemant Sood and Chander Shekhar, have also been asked to appear at the Delhi office of the ED on Jattvibeday.The summons have been issued under the Prevention of Money Laundering Act,” confirmed officials in the ED.The case relates to the Hampton Court Business Park, Ludhiana. In 2023, while Arora was a Rajya Sabha member, Ritesh Properties applied to the PSPCL, for revised NOC for increasing its contract demand from 1,950 KVA to 7,293 KVA at 66 KV voltage. As mandated by the PSPCL regulations, the company deposited a bank guarantee of Rs 1.97 crore. That guarantee was valid till September 12, 2028. The NOC was issued by the PSPCL on October 20, 2023.In 2025, when Sanjay Arora had been elected as MLA in a bypoll, the company applied for change of supply voltage from 66 KV to 11 KV. For that, the company was asked to deposit a bank guarantee of Rs 1.87 crore.The company was told that the earlier bank guarantee would be returned only on submission of the new bank guarantee. By that time, Arora had already become a minister in the Bhagwant Mann government and was allocated the Power Department in August 2025.In September, the company appealed to Punjab State Electricity Regulatory Commission (PSERC) to reduce the bank guarantee and other charges. In January this year, the PSERC said the guarantee should be taken on contract demand, instead of load.Issue raised by engineersAs per records available with The Tribune, the company, Ritesh Properties, wrote to the PSPCL to return the bank guarantee of Rs 1.97 crore on February 2, and the PSPCL returned that the very next day, without the company depositing the revised bank guarantee.It was only after the protesting PSPCL engineers raised the issue that the bank guarantee was replaced on April 6.The demand letter for the guarantee was issued on March 20. Arora had then said that there was no illegality as the guarantee had been replaced. He had then said that he had resigned from the company.