Satyendar Jain faces CBI probe in money laundering case

The Central Bureau of Investigation (CBI) on Tuesday said it has registered a preliminary inquiry against Delhi Health Minister Satyendar Jain and others in an alleged money laundering case worth ₹ 4.63 crore in 2015-16.

The probe agency registered the case on Monday on the basis of several evidences it has collected against the minister, saying he was involved in money laundering despite being a public servant.

"Jain is accused of being involved in the crime through Kolkata-based companies - Prayas Info Pvt Ltd, Akichand Developers and Mangalyatan Project Pvt Ltd - during 2015-16," an official said.

Jain, who is a close confidant of Delhi Chief Minister Arvind Kejriwal, is also accused of purported money laundering worth Rs 11.78 crore during 2010-12 through these companies and another Delhi-based Indo-Metal Index Pvt Ltd.

It was alleged that the money was given in cash by Jain through his employees and public associates to Kolkata-based entry operators and various shell companies for providing accommodation entries in his favour, the official said.

"Thereafter, entry operators routed the black money in the form of investment in shares of Prayas Info Pvt Ltd, Akichand Developers, Mangalyatan Project Pvt Ltd and Indo-Metal Index Pvt Ltd, which were controlled by Jain," the official said.

They said that interestingly, the shares were bought at a premium of 60 times the unit price.

"Jain technically resigned from the directorship of the companies in view of the 2013 Delhi assembly elections. The money received back in the form of investment in shares was used by him for purchasing agriculture land worth ₹ 27.69 crore in Delhi in the name of companies controlled by him."

It was also alleged that Jain used his power as minister to get the agricultural land declared as residential area by the Delhi government in order to gain huge financial benefits, he added.

The matter was referred to the CBI by Income Tax Department against the new Benami Transactions Prohibitions Act.

The IT Department in September 2016 summoned Jain for his alleged links with three firms which were under scanner over allegations of hawala transactions of nearly ₹17 crore.

The Delhi Health Minister then said that he had made investments in these companies as an investor four years back but separated himself since 2013 and that he had done nothing wrong.

IT officials received records of certain financial transactions connected to Jain after their counterparts in Kolkata recently searched a firm in connection with a tax evasion and alleged illegal financial remittances case.