Delhi High Court Seeks ED's Response On Satyendar Jain's Plea Seeking Bail In Money Laundering Case

The Delhi High Court on Thursday issued notice on the bail plea moved by Aam Aadmi Party leader Satyendar Jain in connection with a money laundering case in which he has been in custody since May 30.

Justice Dinesh Kumar Sharma sought a response from the Enforcement Directorate positively within a period of two weeks.

Senior Advocate N. Hariharan appearing for Jain submitted before the court that there are no proceeds of crime generated in the matter and that the case is based on a "notional basis."

"My endeavour during the course of argument….I wish to show that there are no proceeds of crime in this case. My endeavour will be to show that no proceeds of crime were generated. In fact as far as the predicate offence is concerned, no predicate offence is committed. It is all based on a notional basis," he said.

The senior counsel added: "If no predicate offence is committed, then even as per the latest observations of the Supreme Court in Vijay Madan Lal Chaudhary case, the offence in PMLA of proceeds of crime will not lie in the mouth of the ED. This will be the endeavour."

Hariharan further said that he will show how the impugned order of the trial court made out a new case which was not pressed either by the CBI or ED.

The matter will now be heard next on December 20.

Jain's bail application was dismissed by the trial court on November 17.

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 has 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 has said.

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

"He is already in jail for more than 4 months now. Already on bail in CBI case - no allegation that he misused the bail granted in CBI case. Hence Applicant is entitled to regular bail pending trial," his plea states.

About the Case

ED in April this year had 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.