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Synopsis

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

During the hearing, ASG Raju relied on statements of witnesses, and submitted that “Satyendra Jain has misled the investigating agency”, he argued that Jain gave a false statement on oath (S.181 IPC) and it would amount to ‘false evidence’ mentioned under Section 191 of IPC, furthermore it would attract punishment under Section 193 of the Penal code. “This would amount to an additional offence and a ground for rejecting bail”, ASG stated.

Raju also argued that Satyendra Jain was the one who “controlled” and had “command” over JJ Ideal Company during the cheque period and before it. He further argued, that No prudent person would invest in a private company that has “No Business”, furthermore he argued that it was not a ‘one-time business’. Raju argued, “Why would someone invest in Calcutta-based companies…only to compensate black money”.

ASG argued that mainly to root the “black money”, Jain invested in the Shell companies. He further submitted that Vaibhav Jain is a close aide and is trying to protect Satyendra Jain when he said that he along with Jain had paid the money to the Calcutta-based operatives. Raju stated that as per the Income Tax records and Balance Sheet, Vaibhav Jain was not in the “capacity” to pay cash to the operators, he did not even have Rs.1 crore in his account. Therefore, ASG argued that this clearly indicates that it is all Satyendra Jain’s money.

Referring to the CCTV footage, submitted by the ED last week, ASG Raju stated, “kindly look at the conduct of Satyendra Jain in Jail, he is clearly abusing power sitting in the Jail”. He further contended that Jain is either in the hospital for some treatment or sitting and enjoying in Tihar jail. “Jail is not a place of enjoyment”, with this he concluded his arguments opposing Jain’s bail plea.

After hearing ASG Raju’s arguments, Special Judge Vikas Dhull adjourned the bail hearing and will continue hearing the counter-arguments tomorrow i.e. November 10.

Earlier, on Monday 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 had also contended that Jain’s modus operandi was to convert all his “cash” into “genuine money/non-tainted money”. The ASG had 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 had 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”.

Last week, ED 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 submitted 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 was 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 ED 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. He was arrested on May 31.

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