A special Enforcement Directorate (ED) court sentenced former Minister Harinarayan Rai to seven year rigorous imprisonment and Rs 5 lakh fine in a money laundering case here on Monday. The court sentenced Rai in Rs 3.72 crore money laundering case lodged by ED in September 2009.

The court found Rai guilty of laundering funds over Rs 3.72 crore under section 4 of the Prevention of Money laundering Act. “Rai was accused of laundering Rs 4.83 crore but after chargesheets were framed he was found to be guilty of laundering Rs 3.72 crore. The court has also slapped Rs 5 lakh fine on him and in case of no payment of the fine he will have to serve an additional 18 months prison term,” said ED counsel SR Das.

Rai was convicted and sentenced by the Special ED Court of BK Tiwari in the case that was heard for over seven years. As many as 33 witnesses were examined during the hearings, added Das. The ED had attached properties of Rai and his relatives.

The case was lodged on September 4, 2009 after a huge money laundering scam during the regime of former CM Madhu Koda was unearthed. The case was being probed by the vigilance bureau involving five former ministers and former CM Madhu Koda. later it was handed over to CBI and ED.  

Rai is already serving 5-year jail term in disproportionate assets case sentenced by the CBI in December last year. The former Urban Development Minister, his wife Sushila Devi and brother Sanjay Rai, were sentenced 5-year term by a special CBI court.

Rai was one of the three Independent legislators who had toppled the BJP government led by Arjun Munda in 2006, facilitating formation of the government led by Madhu Koda, an Independent member of the assembly.

Rai was a minister from 2005 to 2009 in three governments led by Arjun Munda, Madhu Koda and Jharkhand Mukti Morcha (JMM) chief Shibu Soren.