The Supreme Court, on Monday (March 18), refused to grant bail to Aam Aadmi Party (AAP) leader Satyendar Jain in a money laundering case. Additionally, it revoked the interim bail previously granted to him and instructed Jain to surrender immediately.
Jain was apprehended by the Enforcement Directorate (ED) in May 2022 under allegations of money laundering pursuant to the Prevention of Money Laundering Act. He, along with others, faced accusations of laundering funds through three companies between 2010-12 and 2015-16. Presently, Jain is out on interim bail due to medical reasons, sanctioned by the apex court in May last year. The ruling was delivered by a bench comprising Justices Bela M Trivedi and Pankaj Mithal. The division bench heard Jain’s plea against an April 2023 Delhi High Court decision denying him bail. The judgment in this case was reserved in January following a four-day hearing.
Jain’s counsel argued for a delay in surrender citing ongoing physiotherapy treatment. However, the Court declined, ordering Jain to surrender forthwith. The bail plea of co-accused Ankush Jain was also dismissed by the Court.
Arguments Presented by the ED
During the hearing, the ED, represented by Additional Solicitor-General SV Raju, vehemently opposed Jain’s bail petition. Raju contended that Jain retained effective control over the implicated companies despite stepping down as a director. He underscored the reception of unaccounted cash exceeding four crores in these companies through dubious entries, a fact undisputed by Jain. The ED asserted that Jain’s family members were utilized as proxies, with co-accused Vaibhav and Ankush Jain acting as mere figureheads. The agency alleged that the entire sum received by these companies could be traced back to Satyendar Jain. ASG Raju cautioned against overturning the concurrent findings of lower courts, both of which had previously denied Jain’s bail request. Additionally, he raised concerns about Jain’s purported attempts to delay the trial proceedings.
Satyendar Jain’s Defense
On behalf of Jain, Senior Advocate Abhishek Manu Singhvi rebuffed these allegations. Singhvi contended that the ED’s case lacked substantial evidence and relied on vague terms such as ‘mastermind’ and ‘control.’ He highlighted the absence of credible links connecting Jain to the purported money laundering activities. Singhvi also questioned the necessity of Jain’s arrest, emphasizing the minimal stake held by the AAP leader in the implicated companies and his decision to relinquish his directorial position.
Singhvi emphasized the absence of any predicate offense against Jain and challenged the application of the Prevention of Money Laundering Act in this scenario. He asserted that Jain’s role was that of a qualified architect, not an investor or financier, and underscored his full cooperation during the investigation.
Singhvi further argued against Jain’s prolonged detention, vehemently denying any tactics to delay trial proceedings.
Background
In 2017, the Central Bureau of Investigation accused Jain and others of laundering funds amounting to Rs 11.78 crore during 2010-2012 and Rs 4.63 crores during 2015-16, coinciding with Jain’s tenure as a minister in the Delhi government. It was alleged that the money laundering scheme was executed through three companies – Paryas Infosolution, Akinchan Developers, and Mangalayatan Projects.
Jain purportedly provided funds to certain Kolkata-based entry operators of various shell companies through his associates. These operators allegedly rerouted the funds as investments through shares in Jain-linked companies after layering them through shell entities.
The Enforcement Directorate’s case, based on the CBI complaint, claimed that Jain signed conveyance deeds for the purchase of agricultural lands by Prayas Infosolutions in 2011 and 2012. Subsequently, the land was allegedly transferred to family members of Jain’s associates, who professed ignorance about the transactions.
Last year, the ED attached properties worth Rs. 4.81 crores belonging to five companies and others involved in the money laundering case against Jain. These assets were reportedly registered under the names of Akinchan Developers, Indo Metal Impex, Paryas Infosolutions, Mangalayatan Projects, and J.J. Ideal Estate, among others.
Jain, a former Cabinet Minister of the Delhi Government, was arrested by the Enforcement Directorate on May 30, 2022. His bail application was initially dismissed by a trial court and subsequently by the Delhi High Court on grounds of his perceived influence and potential tampering with evidence.
Case Details
Satyendar Kumar Jain v. Directorate of Enforcement | Special Leave Petition(Criminal) No. 6561 of 2023
