Tribune News Service

New Delhi, November 29

The Union government on Thursday granted sanction to the Central Bureau of Investigation (CBI) to prosecute Delhi Home and Health Minister Satyendra Kumar Jain in a 2017 case registered against him for allegedly acquiring assets disproportionate to his known sources of income, official said here.

The CBI had registered a case under the Prevention of Corruption Act against Satyendra Jain and Poonam Jain, Ajit Prasad Jain, Sunil Kumar, Vaibhav Jain and Ankush Jain under various provisions of the Prevention of Corruption Act.

It was alleged that Jain floated/acquired several shell companies in Delhi, which included Akichan Developers Private Limited, Indo Metal Impex Private Limited, Paryas Infosolutions Private Limited and Manglayatan Projects Private Limited during financial years 2009-10 and 2010-11.

These shell companies did not have any real business, it was alleged, adding that "Jain had laundered black money of Rs 16.39 crore between 2010-11 to 2015-16 through 54 shell companies of three hawala entry operators of Kolkata identified as Jeevendra Mishra, Abhishek Chokhani and Rajendra Bansal".

After laundering of unaccounted cash and receipt of equivalent in amounts in cheques through hawala entry operator and by using black money in the form of unaccounted cash, more than 200 bighas of agricultural land was purchased in name of companies controlled by Jain in the vicinity of unorganised colonies located at Karala, Auchandi, Nizampur, Budhan, North and North-West area of Delhi during lasts five years, it was alleged.

On being prosecuted by the Income Tax department, Jain surrendered Rs 16.39 crore in cash, which was allegedly laundered using shell companies of Kolkata for purchasing 200 bigha of the land under Income Disclosure Scheme 2016 on benami names of Vaibhav Jain and Ankush Jain.

On inquiry, it was found that Vaibhav Jain and Ankush Jain were in no way connected with the shell companies floated/acquired allegedly by Satyendra Jain during the period of money laundering of Rs 16.39 crore and the hawala entry operators of Kolkata admitted before Income Tax authorities that money laundering was done allegedly on instruction of Satyendra Jain, receipt of equivalent amount of cash along with commission from the same person.

Proceedings under the Prohibition of Benami Property Transaction Act (PBPT Act) were conducted by the competent authority against Satyendra Jain and his shell companies and the same was completed by holding him as the beneficial owner of shares of shell companies namely Akinchan Developers Private Limited, Indo Metal Impex Private Limited, Paryas Infosolutions Private Limited and Manglayatan Projects Private Limited as well as land purchased in the name of these companies.

Consequently on May 24 last year, land and shares of these companies were provisionally attached under the PBPT Act.

In May this year, appeal of Satyendra Jain against provisional order of the department was dismissed by adjudicating authority and accordingly 200 bighas of land is under regular attachment for confiscation, the officials said.

Since Jain 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 at present pending before the Income Tax Department, the officials said.

The re-assessment proceedings in above referred to cases have detected hawala transactions and instances of unaccounted cash payments in purchase of land.

In a writ petition before Delhi High Court in case of Akichan Developers Private Limited that the black money of Rs 16.39 crore 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 crore (which was laundered) under Income Disclosure Scheme, 2016. These facts prove that laundering of black money by Jain is an undisputed fact.

The efforts of the AAP government to regularise unauthorised colonies during its first tenure between December 2013 to February 2014 and current tenure is linked with the investment in agricultural land allegedly by Satyendra Jain.

The proposed regularisation of unauthorised colonies would convert these agricultural lands into residential and commercial land, and in turn provide huge returns on the investment, the officials said.

Calling the Centre's action just a "ploy" to defame the minister and malign the party's image, AAP termed the CBI a "parrot". The CBI is acting at the behest of its bosses (BJP-led Centre), a senior party leader said, adding the central agency registers cases first and grants sanction later.