Patiala: The Enforcement Directorate (ED) has rescheduled the appearance of Punjab State Power Corporation Limited (PSPCL) Chairman-cum-Managing Director Basant Garg and Director (Commercial) Harsharan Kaur Trehan to Wednesday in connection with its money-laundering investigation linked to arrested Punjab minister Sanjeev Arora. Garg and Trehan were initially summoned to appear at the ED's New Delhi headquarters on Monday.
Records Sought by ED
The central agency has instructed the two officials to produce documents related to a Rs 1.9-crore bank guarantee that PSPCL refunded to a company when Arora held the charge of the power ministry. Investigators expect PSPCL to provide file notes, approval records, and internal correspondence associated with the decision.
PSPCL's Compliance
Garg stated that PSPCL is fully cooperating with the ED's directives. "The ED has sought certain institutional records. We will meticulously compile and submit the entire record to the investigators," Garg said. Trehan could not be reached for comment despite repeated attempts.
Background of the Case
According to sources, in October 2023, when Arora was a Rajya Sabha MP, a company obtained approval for a revised no-objection certificate (NOC) from PSPCL to increase its power load from 1,950 KVA to 7,293 KVA on a 66 KV line after depositing a mandatory bank guarantee of Rs 1.9 crore, valid until September 2028. After Arora became power minister, the company allegedly sought to downgrade the electricity supply line from 66 KV to 11 KV.
Alleged Irregularities
Under PSPCL regulations, the original guarantee could only be released after the developer submitted a revised security deposit of Rs 1.87 crore. However, PSPCL allegedly refunded the entire Rs 1.97 crore guarantee on February 3 this year, just one day after the developer's request dated February 2, without obtaining the replacement security. This reportedly left the utility without any financial security cover for nearly two months. A replacement guarantee was allegedly furnished only on April 6 after objections were raised by PSPCL engineers.
ED's Investigation
The ED is examining whether ministerial influence played a role in the clearance and has sought all approval notes and internal file records linked to the decision. Investigators are specifically probing why PSPCL's commercial wing cleared the release of the original guarantee before obtaining a revised security instrument. The guarantee had been deposited for a 40-acre business park project in Ludhiana. The company, which has since been renamed, is alleged to have links to the Arora family's business interests.
Previous Summons
Earlier, the ED had also summoned two close associates of Arora, including a Jalandhar-based businessman, under the Prevention of Money Laundering Act (PMLA).
