In a setback to Aam Aadmi Party leader Satyendar Jain, a Delhi court on Thursday denied bail to him two others in a money laundering case, saying he was prima facie involved in concealing the "proceeds of crime".
On the two co-accused -- Vaibhav Jain and Ankush Jain -- Special Judge Vikas Dhull said they "knowingly" assisted Jain in concealing the proceeds of crime and were prima facie guilty of money laundering.
The court said prima facie Jain 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 one."
"By this process, the proceeds of crime to the tune of 1/3rd of Rs 4.61 crore has been laundered. Apart from that, Jain has also used the same modus operandi to convert his proceeds of crime of Rs 15 lakh by receiving accommodation entries from Kolkata-based entry operators in his company by the name of J J Ideal Estate Pvt Ltd," the court noted.
It said that Jain had knowingly done such activity to obliterate the tracing of the source of ill-gotten money and accordingly the proceeds of crime was layered through Kolkata-based entry operators in a way that its source was difficult to decipher.
"Hence, applicant/accused Satyendar Kumar Jain has prima facie indulged in the offence of money laundering of more than Rs 1 crore," the judge said.
He further said money laundering was a "serious economic offence".
"Hence, Jain is not entitled to the benefit of bail...Hence, application of Jain is dismissed," the judge said.
The judge further said whether Jain was the beneficial owner of the three accused companies or not, or whether there was any shareholding in the said companies, was not germane for calculating the proceeds of crime or for finding out his involvement in the offence.
"The money which had come into the account of three companies during the check period was not the income of the companies arising from any lawful business but in reality the same was the accommodation entries obtained by Jain and other co-accused persons by providing cash to the Kolkata based entry operators," he said.
The amount lying in the accounts of these three companies was in fact the amount belonging to Jain and co-accused Vaibhav Jain and Ankush Jain, the court noted.
It observed that the cash which was provided by Jain the two co accused was to the tune of Rs 4.61 crore during the check period.
The court said that the amount of Rs 4.61 crore was not notional or assumptive but was established on record by the statement of two Kolkata based entry operator.
The federal agency had arrested the accused in the money laundering case based on a Central Bureau of Investigation (CBI) first information report (FIR) lodged against Jain in 2017 under the Prevention of Corruption Act.
Jain is accused of having laundered money through four companies allegedly linked to him.
Recently, the court also took cognisance of the prosecution complaint (charge sheet) filed by the ED against Jain, his wife and eight others, including four firms, in connection with the money laundering case.
