Ministry of Home Affairs (MHA) has granted sanction of the prosecution to prosecute Satyendra Kumar Jain, Minister in Delhi Government in a case registered by the Central Bureau of Investigation(CBI) on August 24, 2017, for allegedly acquiring assets disproportionate to his known sources of income, sources said on November 29.
The MHA nod comes after the revelation of startling details pertaining to various alleged investments made by the Delhi cabinet minister.
As per emerging details of the case, Satyendra Jain allegedly floated/acquired several shell companies in Delhi, which included M/s Akichan Developers Private Limited, M/s Indo Metal Impex Private Limited, M/s Paryas Infosolutions Private Limited and M/s Manglayatan Projects Private Limited during F.Y.2009-10 and 2010-11. These shell companies do not have any real business. Jain had laundered black money of Rs.16.39 Cr. during F.Y. 2010-11 to 2015-16 through 54 shell companies of three hawala entry operators of Kolkata namely Jeevendra Mishra, Abhishek Chokhani and Rajendra Bansal.
Sharing more details of the case, the senior government official added, "After laundering of unaccounted cash and receipt of equivalent amounts in cheques through hawala entry operator and by using black money in the form of unaccounted cash, more than 200 bigha of agricultural land were purchased in names of companies controlled by Jain in the vicinity of unorganized colonies located in Kerala, Auchandi, Nizampur, Budhan, North and North-West area of Delhi during last five years."
"On being prosecuted by the Income Tax Department, Satyendra Jain surrendered black money in form of cash of Rs.16.39 crores which was laundered using shell companies of Kolkata for purchasing 200 bigha of the land under Income Disclosure Scheme (IDS) 2016 on benami names of Vaibhav Jain and Ankush Jain. On enquiry, it was found that Vaibhav Jain and Ankush Jain were in no way connected with the shell companies floated or acquired by Jain during the period of money laundering of Rs.16.39 Crore and the Hawala entry operators of Kolkata who had admitted before Income Tax Authorities that money laundering of Rs.16.39 Crore was done on instruction of Satyender Jain and receipt of equivalent amount of cash along with commission from Jain," senior government official informed.
Proceedings under the Prohibition of Benami Property Transaction Act, 1988 (PBPT Act) were conducted by the competent authority against Satyender Jain and his shell companies and the same was completed by holding Satyender Jain beneficial owner of shares of shell companies namely M/s Akinchan Developers Private Limited, M/s Indo Metal Impex Private Limited, M/s Paryas Infosolutions Private Limited and M/s Manglayatan Projects Private Limited as well as lands purchased on the name of these companies, consequently land and shares of these companies were provisionally attached u/s 24(4) of the PBPT Act, 1988 on 24.05.2017. The appeal of Jain against provisional order of the department has been dismissed recently by adjudicating authority vide order dated 22.05.2018, accordingly, the lands of 200 bigha are under regular attachment for confiscation.
Outlining the declarations made by Jain under the Benami Property Transactions Act, it is further informed that since, Delhi health minister Jain has declared unaccounted income of Rs.16.39 crore under the IDS in benami names and tax was paid on this amount, separate proceedings under the Prohibition of Benami Property Transaction Act have been initiated regarding the money paid as tax actually belonged to Jain.
These proceedings are presently pending before the Income Tax Department.
It was also informed that, the re-assessment proceedings in above referred to cases have detected hawala transactions and instances of unaccounted cash payments in purchase of land.
The official also revealed that, Delhi cabinet minister Jain admitted in the writ petition before Delhi High Court in case of M/s Akichan Developers Private Limited that the black money of Rs.16.39 Cr. was actually laundered using shell companies controlled by three hawala entry operators of Kolkata. Jain had further surrendered the black money of Rs.16.39 Cr (which was laundered) under Income Disclosure Scheme, 2016. These facts prove that laundering of black money by Jain is an undisputed fact.
As per sources, it has also come to light that the regularization of colonies during AAP's first tenure would have provided huge returns to investments by Jain.
"The effort of the AAP Government to regularize unauthorized colonies during the first tenure of AAP government from 28.12.2013 to 14.02.2014 and present tenure is linked with the investment in agricultural land by Jain. The proposed regularization of unauthorized colonies will convert these agricultural lands into residential and commercial land which will provide huge returns on the investment by Jain," informed the official.
A regular Case was registered for the commission of offences u/s 13(2) r/w 13(1) € of the P.C. Act, 1988 against Satyendra Kumar Jain and u/s 109 IPC r/w section 13(2) r/w 13(1)(e) of the P.C. Act, 1998 against Poonam Jain, Ajit Prasad Jain, Sunil Kumar, Vaibhav Jain and Ankush Jain by CBI on 24.08.2018 vide case No.RC AC-1 2017 A0005.
'The proceeds of crime which were layered and laundered through shell companies are reflected in a purchase of agricultural land and repayment of loans', said a senior official privy with the development.
Investigations in the arena of generation of proceeds of crime are being conducted by the Enforcement Directorate and the CBI. Enforcement Directorate is in the process of attaching the process of the crime.