Money laundering case: Satyendra Jain dares CBI to arrest him

Delhi Health Minister Satyendra Jain was allegedly involved in laundering Rs 11.78 crore during 2010-12.

New Delhi, April 12: Delhi Health Minister Satyendra Jain on Tuesday said the charges had "no merits" and dared the CBI to arrest him, shortly after the agency initiated a preliminary enquiry against him, for allegedly laundering Rs 16 crore, giving a fresh blow to the Aam Admi Party as it prepares for the MCD elections in the national capital.

Jain had himself dismissed the allegations after Income Tax had last month attached properties linked to him in the matter. Although the minister had "technically" resigned as Director from these firms before 2013 assembly polls, in which AAP made anti-corruption a major election plank, he still controlled their operations, it is alleged.

Reacting to the development, Jain dubbed the probe ahead of MCD polls as "politically motivated" and said there were "no merits" in the allegations against him, daring the agency to arrest him.

"All this is expected. The matter was raised before the Punjab polls. After three months, they are doing it again ahead of the MCD polls,” he told reporters here. The Delhi government has started providing health care free of cost to people. No other government in the country provides free medicines and free diagnostic tests, irrespective of the cost and this has "affected" the politicians and pressure groups, he claimed.

"I have earned all my income with my hard work and I have been a tax payer for decades. I am not afraid of any probe about my income details, nor am I scared of any political vendetta," Jain further said.

He had said he was a professional architect with a practice of nearly 25 years. Jain had said he had made investments of around Rs 51 lakh between the years 2007 and 2012 in few Pvt Ltd companies. He had said that since he did not want the conflict of interest, he "resigned" from the boards of companies in which he was a director within 10 days of getting the AAP ticket to contest Delhi Assembly polls in 2013.

"Within 10 days of getting ticket, I resigned on 31st July 2013 from the boards of companies in which I was a director. I had taken this decision since I was entering politics and I did not want any conflict of interest," he had said. The Minister had said he has not been associated since 31 July, 2013 with any of the companies and he failed to understand how his name was dragged with regard to investment value of the land etc.

Allegation against Jain is politically motivated: AAP

Delhi Chief Minister Arvind Kejriwal's government immediately rejected the allegation as "politically motivated" and was a "defamatory, malicious and desperate" attempt to malign Jain's image ahead of MCD polls.

An AAP government source said, "It is defamatory, malicious and desperate attempt to malign Jain's image ahead of MCD polls."

The source noted that before coming into politics, Jain, being a professional architect, had invested Rs 50 lakh in various companies between 2007 and 2012. Jain had also showed all his investment in his income tax return.

"Such allegations are politically motivated. In July 2013, he had given up directorship in all companies before joining politics," said the source.

Allegations against Jain

Jain was allegedly involved in laundering Rs 11.78 crore during 2010-12 through Prayas Info Solutions Pvt. Ltd., Akinchan Developers Pvt. Ltd., Managalyatan Projects Pvt. Ltd. and Indometal Impex Pvt. Ltd., CBI sources claimed citing the contents of the Preliminary Enquiry (PE).

Jain is also alleged to have been involved in laundering Rs 4.63 crore while being a public servant during 2015-16 through three of these companies, the sources said.

It is alleged that Jain used the ill-gotten money for purchasing agriculture land worth Rs 27.69 crore in Delhi in the name of companies controlled by him. Jain as Minister in Delhi Government was allegedly using his influence in trying to convert the agriculture land into residential land.

According to the PE, Jain allegedly gave Rs 11.78 crore , in cash, through his employees and associates to some Kolkata-based entry operators of shell companies for providing "accommodation entries" in his favour, they said.

Entry operators are agents who launder and route black money using normal banking channels without coming under scanner of banking regulators. The money was routed back by the entry operators in the form of investment in shares of the companies which were controlled by Jain at nearly 60 times their actual prices, it is alleged.

Shares worth Rs 10 in these companies were allegedly purchased at Rs 590 by the entry operators as investment in companies allegedly controlled by Jain. It is alleged that these companies did not have any business activity during the period of funding so as to attract such huge funding in the form of share capital and share premium.

The money received back in the form of investment in shares was allegedly used by Jain for purchasing the agriculture land. Last month, Income Tax department had attached 'benami assets' allegedly linked to Jain in a case of illegal routing of undisclosed funds probed by it. After the attachment, Jain had issued a statement denying the allegations against him.

The CBI has acted on a reference from the Income Tax department which was probing the matter under new benami prohibition law. The Benami Transactions Act carries a maximum punishment of up to seven years rigorous imprisonment and a hefty penalty, and violators could also stand to be charged under the Income Tax Act, 1961.

A preliminary enquiry is the first step by the CBI to gather information about the allegations. If the agency is convinced that there exists prima facie material in the matter, it may register a regular case against the accused.

CBI's enquiry, a fresh blow to AAP

The Kejriwal-led AAP is the main contender in Municipal Corporation elections, due for April 23, along with the BJP and the Congress and is hoping to wrest the three corporations from the saffron party which has been controlling them for last 10 years.

However, the CBI action against Jain will further embarrass the AAP which faced criticism after the Shunglu committee recently pointed out "gross abuse of power" by its government. Latching onto the committee's report, the opposition has accused Kejriwal government of failing to deliver on its main plank of fighting corruption.

OneIndia News

(With PTI inputs)