CBI registers PE against Delhi Minister Satyendar Jain

In more trouble for Arvind Kejriwal government, the CBI has initiated a preliminary enquiry against Delhi Health Minister Satyendar Jain over allegations of money laundering against him.

It is alleged that Jain was involved in money laundering to the tune of Rs 4.63 crore while being a public servant during 2015-16 through Prayas Info Solutions private limited, Akinchan Developers private limited and Managalyatan projects private limited, CBI sources said.

The development will cause further embarrassment to Kejriwal-led Aam Aadmi Party which is preparing to contest MCD elections on April 23. The opposition has accused it of failing to deliver on its main plank of fighting corruption after the Shunglu committee pointed out "gross abuse of power" by the Arvind Kejriwal government in its report.

Jain had dismissed the allegations after Enforcement Directorate action last month attaching properties linked to him in the matter.

A preliminary enquiry is the first step by the CBI to gather information about the allegations. If the agency is convinced that there exists prima facie material in the matter, it may register a regular case against the accused.

The allegations against Jain also include purported money laundering to the tune of Rs 11.78 crore during 2010-12 through these companies and Indometal Impex pvt limited.

It was alleged that the money was given by Jain, in cash, through his employees and associates to some Kolkata-based entry operators of shell companies for providing "accommodation entries" in his favour.

Entry operators are agents who launder and route black money using normal banking channels without coming under scanner of banking regulators.

The matter was referred by Income Tax department. It was alleged that the money was routed by the entry operators in the form of investment in shares of Prayas Info Solutions private limited, Akinchan Developers private limited and Managalyatan projects private limited which were controlled by Jain.

It is alleged that Jain had "technically" resigned from the directorship of these companies just before the 2013 elections of Delhi Assembly.

The money was received back in these companies as investment in shares at 60 times the price.

Shares worth Rs 10 in these companies were allegedly purchased at Rs 590 by the entry operators as investment in companies allegedly controlled by Jain.

The money received back in the form of investment in shares was allegedly used by Jain for purchasing agriculture land worth Rs 27.69 crore in Delhi in the name of companies controlled by him.

It is alleged that Jain as Minister in Delhi Government was using his influence in trying to convert the agriculture land into residential land.

The matter was referred by Income Tax Department to the CBI under the new Benami Transactions Prohibitions Act.