The Aam Aadmi Party (AAP) is grappling with a crisis in Punjab following the arrest of Sanjeev Arora, the state's industries and power minister, by the Enforcement Directorate (ED). This marks the first arrest of a sitting minister in the Bhagwant Mann government. The ED's investigation centers on a ₹157-crore GST and export fraud involving fake invoices from non-existent firms in the Delhi-NCR region. Allegations suggest that ₹102.5 crore was funneled through two shell companies based in the UAE. The arrest follows a series of ED raids targeting Arora's properties and associates, marking the third such raid in under a year. Meanwhile, Aman Arora, the Punjab AAP president, is also under investigation for a separate money-laundering case linked to real estate firms. Chief Minister Bhagwant Mann has accused the BJP of using these investigations as a tactic to undermine AAP's governance, suggesting that the party's recent political maneuvers are part of a broader strategy to instill fear and consolidate power. The political implications of these developments are significant, as AAP's strength in Punjab is being tested ahead of the upcoming assembly elections in early 2027.