Delhi Health Minister Satyendar Jain’s arrest by the Enforcement Directorate in a money laundering case has emerged as the latest flashpoint between the Aam Aadmi Party and the BJP. While the Delhi Chief Minister has called the ED case against Jain “completely fake and politically motivated”, the BJP has accused the AAP convenor of shielding the corrupt. 

Jain has been arrested under criminal sections of the Prevention of Money Laundering Act (PMLA) with the ED case being based on a CBI FIR where he was accused of having laundered money through four companies allegedly linked to him. 

Amid the political standoff, here’s a refresher into the charges levelled by the Enforcement Directorate against Jain:

All about the ED case against Jain

Jain’s arrest is based on an investigation that dates back to 2015-16. The ED alleged that Jain was involved in hawala transactions with a Kolkata-based firm. 

As per the ED chargesheet, the investigation revealed that in 2015-16, when Jain was working in the central public works department, four firms “beneficially owned and controlled by him” received “accommodation entries (a term used for hawala transfers) to the tune of Rs 4.81 crore from shell companies against cash transferred to Kolkata-based entry operators through hawala route.”

In a statement issued last month, the ED had said it issued a provisional order under the PMLA to “attach immovable properties worth Rs 4.81 crore belonging to Akinchan Developers Pvt. Ltd.; Indo Metal Impex Pvt Ltd; Paryas Infosolutions Pvt. Ltd.; Manglayatan Projects Pvt. Ltd.; J.J. Ideal Estate Pvt. Ltd.; Swati Jain, wife of Vaibhav Jain; Sushila Jain, wife of Ajit Prasad Jain; and Indu Jain, wife of Sunil Jain.”  

“These amounts were utilised for direct purchase of land or for repayment of loan taken for the purchase of agricultural land in and around Delhi,” the ED said.

The persons named in the attachment order are associates and family members of Jain, the officials said.

The money laundering case against the Delhi minister stems from an August 2017 FIR filed by the CBI against him and others on charges of alleged possession of disproportionate assets (DA).

A charge sheet was filed by the CBI in December 2018 stating that the alleged DA was to the tune of Rs 1.47 crore, about 217 per cent more than his known sources of income, during 2015-17.

The Income Tax Department had also probed these transactions and issued an order attaching “benami assets” allegedly linked to Jain.

What is PMLA Act?

PMLA, 2002 is an act to prevent money-laundering. This enables the law enforcement agencies to confiscate property acquired through illegal activities including money laundering and hawala transactions. It was introduced to fight against the criminal offence of legalising the income from an illegal source.

What if crime under PMA is established?

If the charges under PMLA are established against the accused, the central agency can seize or free property obtained with the proceeds of crime. 

Any person who commits the offence of money laundering shall be punishable with rigorous imprisonment for a minimum term of three years and this may extend up to seven years.