Money Laundering: CBI's probe against Delhi Minister Satyendra Jain

12 Apr 2017 | By Ramya Patelkhana

A probe against Delhi's Health Minister, Satyendra Jain, has been initiated by the Central Bureau of Investigation.

He allegedly turned his black money into white during 2010-12 and 2015-16 with the help of his companies and Kolkata-based data entry operators.

CBI said a preliminary enquiry (PE) has been registered against the AAP leader, who is considered close to Delhi Chief Minister Arvind Kejriwal.

In context: Controversial AAP Delhi Minister Satyendra Jain

IntroductionIncome Tax department's investigation lands Minister Satyendra Jain in trouble

In Sep'16, the Income Tax department summoned Aam Aadmi Party leader and Delhi Government Health Minister Satyendra Jain in relation to a tax evasion probe against certain Kolkata-based companies.

The department recovered documents relating to transactions made by at least three companies allegedly linked to Jain.

Landing Jain in big trouble, I-T department's investigation revealed hawala deals made by him with Kolkata-based operators' help.

InvestigationHawala dealers channeled black money into companies linked to Jain

I-T department investigated huge bank transactions between Jain and his wife that didn't match his I-T returns.

He used Rs. 16.38cr unaccounted-income in shares of four companies, which had links to Jain; the companies had no income source.

Investigation showed unaccounted income was handed over to Kolkata-based hawala dealers, who infused it into 56 shell firms and then channeled into companies linked to Jain.

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12 Apr 2017Money Laundering: CBI's probe against Delhi Minister Satyendra Jain

Accused of nepotism and misuse of office

Previous ProbesAccused of nepotism and misuse of office

Satyendra Jain, accused of nepotism and misuse of office, is already under the scanner in two previous CBI investigations.

The first one involves the controversial appointment of his daughter, Soumya Jain, as the adviser to the Delhi Government's health department in Apr'16.

In Dec'16, CBI also filed a FIR against Satyendra Jain for appointment of his Officer-On-Special Duty (OSD) Dr. Nikunj Aggarwal in Aug'15.

Money LaunderingLaundering of money in 2015-16 and 2010-12

The CBI said the preliminary enquiry pertains to Satyendra Jain being involved in the laundering of Rs. 4.63cr through Prayas Info Solutions, Akichand Developers, and Managalyatan Projects while being a public servant in 2015-16.

In 2010-12, Jain allegedly laundered Rs. 11.78cr through the aforementioned companies and also Indometal Impex.

All the four companies are allegedly run by the AAP leader, according to reports.

Data OperatorsEntry operators routed black money into companies' accounts

According to CBI, Jain gave money in cash through his employees/associates to Kolkata-based entry operators for providing accommodation entries in his favor.

These entry operators reportedly routed Jain's black money into the accounts of four companies allegedly run by him.

The information received by the investigation agency suggests that the Kolkata-based data operators showed shares worth Rs. 10 to be purchased for Rs. 590.

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Agricultural LandJain used influence to get financial benefit

The CBI said, "The money so recovered back in the form of investment in shares was used by Jain for buying agricultural land worth Rs. 27.69cr in Delhi in the name of his companies."

It added Jain had used his influence and tried to push the revenue department for the declaration of areas where he bought land as residential areas to get financial benefits.

ED likely to jump in

CBI said the I-T department referred the matter to it under the new Benami Transactions Prohibitions Act. As the probe is pertaining to money laundering, the Enforcement Directorate is likely to get involved and seek documents from I-T department and CBI.