CBI registers PE against Minister Satyendar Jain

In another setback for Aam Aadmi Party (AAP) before MCD elections, a preliminary enquiry against senior party leader and Delhi Health Minister Satyendar Jain was initiated by CBI on Tuesday over an alleged money laundering case.

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.

According to CBI sources, it is alleged that Jain was involved in money laundering to the tune of Rs 4.63 crore while being a public servant during 2015-16 through Prayas Info Solutions private limited, Akinchan Developers Private Limited and Managalyatan Projects Private Limited.

The development will cause further embarrassment to Kejriwal-led AAP which is preparing to contest MCD elections on April 23. The opposition has accused it of failing to deliver on its main plank of fighting corruption after the Shunglu committee pointed out "gross abuse of power" by the Arvind Kejriwal government in its report.

Jain had dismissed the allegations after Enforcement Directorate action last month attaching properties linked to him in the matter.

The allegations against Jain also include purported money laundering to the tune of Rs 11.78 crore during 2010-12 through these companies and Indometal Impex Pvt Limited.

It was alleged that the money was given by Jain, in cash, through his employees and associates to some Kolkata-based entry operators of shell companies for providing "accommodation entries" in his favour. Entry operators are agents who launder and route black money using normal banking channels without coming under scanner of banking regulators. The matter was referred by Income Tax department. It was alleged that the money was routed by the entry operators in the form of investment in shares of Prayas Info Solutions Private Limited, Akinchan Developers Private Limited and Managalyatan Projects Private Limited which were controlled by Jain.

It is alleged that Jain had "technically" resigned from the directorship of these companies just before the 2013 elections of Delhi Assembly.

The money was received back in these companies as investment in shares at 60 times the price. 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.

The money received back in the form of investment in shares was allegedly used by Jain for purchasing agriculture land worth Rs 27.69 crore in Delhi in the name of companies controlled by him.