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Synopsis

Delhi's Rouse Avenue Court today heard arguments by Additional Solicitor General (ASG) SV Raju appearing for the Directorate of Enforcement (ED) in the bail hearing of Aam Aadmi Party (AAP) Minister Satyendra Jain in a money laundering case. 

During the hearing, ASG Raju placed reliance on the Vijay Madanlal Choudhary v. Union of India, wherein the Apex Court laid down the twin conditions for granting bail under the Prevention of Money Laundering Act (PMLA) given under Section 45:

• that there are reasonable grounds for believing that the accused is not guilty of such offence; and
• that he/she is not likely to commit any offence while on bail.

ASG Raju argued that all the five companies associated with Jain and his dummies Ankush Jain and Vaibhav Jain are just “paper companies” and did “no real Business”. He also argued that these companies have “no intrinsic value” and that they existed only to convert Jain’s “black money” into “white money”.

Raju also contended that Jain’s modus operandi was to convert all his “cash” into “genuine money/non-tainted money”. The ASG also argued on the aspect of Share Application Money, where he stated, “We did not find any application of share! We did not find any Demat share!”, and claimed that “Shares were not transferred”.

The ASG further asserted, “Satyendra Jain is deeply involved before the cheque period and during the cheque period as well, all these years he has been providing cash, currency note numbers to Calcutta based operators”.

After hearing ASG Raju's arguments, Special Judge Vikas Dhull adjourned the bail hearing and scheduled it for November 9, 2022, for the ASG to continue making his submission opposing Jain's bail plea.

Earlier, the ED had informed the court that Jain is being given VIP treatment inside the Tihar Jail and the agency also submitted CCTV footage that showed an unknown person giving a foot, and body massage to Jain inside his cell in the presence of three other unknown persons. "The unknown masseuse also delivers some documents to and from the accused petitioner in a suspicious/clandestine manner," ED had alleged.

Additionally, ED had stated that Jain was being provided with fresh-cut fruits/green salad by some unknown person directly in his cell and the CCTV showed some unknown person sitting with him and having discussions inside his cell.

ED had also submitted that Jain’s cell wass cleaned, mopped, and broomed by some other unknown person under the supervision of co-accused Ankush Jain. "The bedsheet and pillow cover etc, are being changed and the cell is being arranged by an unknown person well before the Jain enters the cell", ED had claimed. 

Furthermore, ED stated that Jain is meeting with co-accused Ankush Jain and Vaibhav Jain along with some other unknown persons having discussions concerning unknown papers in the cell.

In April, the Directorate of Enforcement had attached assets worth Rs. 4.81 crores linked to Jain and his family. ED had initiated an investigation based on an FIR registered by the Central Bureau of Investigation (CBI) against Jain and others under relevant sections of the Indian Penal Code and the Prevention of Corruption Act.

It is alleged that when Jain was a public servant, companies owned and controlled by him received up to Rs. 4.81 crores from shell companies through the Hawala network.

The bail application filed by Satyendra Jain pertains to his arrest in a Money Laundering case in which he was arrested by the Enforcement Directorate on May 31, 2022.

Case Title: Directorate of Enforcement v. Satyendra Kumar Jain & Ors.