Delhi High Court Denies Bail To Satyendar Jain In Money Laundering Case

The Delhi High Court on Thursday denied bail to Aam Aadmi Party leader Satyendar Jain in the money laundering case in which he has been in custody since May 30 last year.

Justice Dinesh Kumar Sharma also denied bail to co-accused Vaibhav Jain and Ankush Jain. 

“Satyendar Jain is an influential person and has the potential of tampering with evidence. The petitioner (Jain), at this stage, can’t be held to clear the twin conditions of PMLA,” the court said.

The court said that there is no illegality or perversity in the order passed by special judge denying bail to all the three accused persons.

The bail application of the AAP leader was dismissed by the trial court on November 17, 2022. Notice on his bail plea was issued by High Court in December last year. Order was reserved on the bail pleas on March 22.

The trial court in the order had said that it has prima facie come on record that he was "actually involved" in concealing the proceeds of crime by giving cash to the Kolkata-based entry operators and thereafter, bringing the cash into three companies against the sale of shares to show that income of these three companies was untainted.

In the petition before the high court, Jain argued that the Special Judge and Enforcement Directorate have gravely misread and misapplied the Prevention of Money Laundering Act "by identifying proceeds of crime solely on the basis of accommodation entries".

The accommodation entries cannot itself lead to a punishable offence under PMLA, he argued.

Jain further said that the charge sheet has already been filed in the case and he is "not required to be incarcerated" during the trial.

About the Case

ED had last year attached properties worth Rs. 4.81 crore belonging to five companies and others in the money laundering case against Jain and others. These assets reportedly were in the name of Akinchan Developers, Indo Metal Impex, Paryas Infosolutions, Mangalayatan Projects and J.J. Ideal Estate etc.

In 2017, the CBI had accused Jain and others of laundering money to the tune of Rs 11.78 crore during 2010-2012 and Rs 4.63 crores during 2015-16, when he had become a minister in Delhi government, through three companies - Paryas Infosolution, Indo Metalimpex, Akinchan Developers and Mangalayatan Projects.

Jain allegedly had given money to some Kolkata based entry operators of different shell companies for accommodation entries, through his associates. The entry operators had then allegedly re-routed the money in the form of investment through shares in Jain-linked companies after "layering them through shell companies".

The ED case, which is based on the CBI FIR, alleges tha Jain signed conveyance deeds for purchase of agriculture lands by Prayas Infosolutions in 2011 and 2012. The central agency has further alleged that the land was later transferred to family members of Jain's associates who denied knowledge about the transfers.

Title: SATYENDAR KUMAR JAIN v. DIRECTORATE OF ENFORCEMENT

Citation: 2023 LiveLaw (Del) 289