The Enforcement Directorate (ED) has alleged that during his remand, Punjab minister Sanjeev Arora misled the investigation by denying any knowledge of the people or entities from whom M/s Hampton Sky Realty Limited (HSRL) bought mobile phones.Arora was the then Chairman and Managing Director of M/s HSRL when the alleged bogus mobile phone exports were made.The ED case is that Arora, in connivance with others, generated proceeds of crime worth Rs 102.5 crore by way of purported exports and bogus purchases of mobile phones, by forging documents and receiving GST refunds on the exports made.During a remand hearing in Gurugram’s Special Court under the Prevention of Money Laundering Act (PMLA) on May 16, the ED alleged that Arora denied knowledge of the entities to which mobile phones were exported and stated that the mobile division of M/s HSRL was controlled and managed by one Sanjeev Walia.Arora also stated that Sanjeev Walia was the authorised signatory on the bank account maintained for the mobile division of M/S HSRL, which, the ED claimed, was contrary to the bank documents.The May 16 order of the court was uploaded on Monday morning.Earlier, Arora was arrested on May 9 and was produced before the Gurugram court the same day. The court had granted ED a seven-day custody order.In the remand hearing on May 16, ED told the court that, during interrogation from May 10 to May 16, Arora denied any knowledge of the funds used to establish the mobile division’s infrastructure at M/s HSRL and of the employees working there. It was further alleged that he stated that Deepak Sharma, the CFO of M/s HSR, has the knowledge.However, when ED questioned Sharma, he recorded his statement on May 15, stating that Sanjeev Arora was controlling and managing the mobile division of M/s HSR, as well as the funds invested therein. He further stated that Arora handled the company’s major financial accounting and policy-related decisions.On the other hand, counsel for Arora told the court that the entire case was based upon documentary evidence. He submitted that there was no requirement to seek further custody to take possession of the records of any company or financial institution, and that any such documents could be collected by the ED from the competent authority.After hearing the arguments, the Special Court granted the ED a two-day custody of Arora.He will be produced again before the Gurugram court on May 18.ED’s caseAccording to ED, M/s HSRL has shown mobile phone sales, valued at approximately Rs 157.12 crore from May 12, 2023 to October 27, 2023, to several local and overseas entities. Out of this, ED told the court, that exports worth about Rs 102.5 crore were made to two UAE-based entities: M/s Fortbel Telecom FZCO and M/s Dragon Global FZCO.M/s Fortbel Telecom FZCO is a related entity of M/s Fortbell Gadget Pvt. Ltd, which is owned by Ludhiana-based businessman Hemant Sood and also Chander Sekhar, who are associated with M/s HSRL through M/s Findoc Finvest Pvt Ltd.During a hearing on May 9, ED had also alleged that M/s Hampton Sky Realty Limited (HSRL), paid Rs 27.73 crore in remittances to a firm registered in the name of a daily-wage labourer.Following the search under FEMA on April 17, an FIR was registered the next day against Sanjeev Arora and his son, Kavya; Hemant Sood; Chander Sekhar; M/s Hampton Sky Realty Limited; and M/s Findoc Finvest Pvt Ltd for cheating, forgery, criminal breach of trust, disappearance of evidence, and criminal conspiracy at Udyog Vihar Police Station, Gurugram.ED registered the Enforcement Case Information Report (ECIR) on May 5.Arora has also moved the Punjab and Haryana High Court, submitting that his arrest was “arbitrary, mechanical, without jurisdiction” and in violation of the mandatory safeguards guaranteed under the Constitution.He also sought directions for setting aside remand order by the Gurugram court.