Another AAP setback: Delhi Health Minister comes under IT scanner

Delhi's Health Minister Satyendra Jain is no stranger to controversy but the latest allegations against him are something that he may find hard to shake off.

Jain has come under the scanner of the Income-Tax (I-T) department for allegedly indulging in hawala transfers worth around Rs 17 crore, and money- laundering with the help of hawala operators. I-T officials say that the department has already summoned the minister thrice to question him on his alleged involvement in money-laundering.

Talking about the modus operandi, agency officials said companies controlled by Jain had received Rs 16.39 crore from 56 shell firms belonging to three hawala operators – Jivendra Mishra, Abhishek Chokhani and Rajendra Bansal — all based in Kolkata.

Officials added that a scrutiny of the I-T returns of four companies — Indo Metal Impex Pvt Ltd, Akinchan Developers Pvt Ltd, Mangalyaatan Projects Pvt Ltd and Paryas Infosolutions Pvt Ltd — all owned by Jain, have revealed that money- laundering was happening through these companies since 2010.

Jain, however, continues to maintain his innocence. The minister, who is a close confidante of Chief Minister Arvind Kejriwal, maintained that he had nothing to do with the hawala operators and was only summoned for questioning as a witness. He said that an assessment of the companies in question was taking place, and as he had made some investments in those companies four or five years ago, he had been summoned for questioning.

The role of Jain first came to light during the interrogation of Mishra and Bansal. A status report filed by the I-T department and accessed by DNA stated: "Mishra disposed that accommodation entries were provided to Indo Metal Impex Pvt Ltd, Paryas Infosolutions, Mangalyaatan Projects and Akinchan Developers during 2011-2012 through his shell companies. Thereafter, further inquiries were conducted by the Kolkata investigation wing, wherein a statement of Mishra was recorded on August 29."

"In the statement of Mishra, he said he was introduced to Satyendra Kumar (Jain) by his friend Raju Bansal and he was provided cash by the employees of Jain, which was transferred to shell companies controlled by him and thereafter equivalent cheques were issued to various companies of Jain."

I-T officials maintain that during interrogation, Bansal had told them that he had met Jain at the office of JP Mohta and Associates in 2010. In the meeting, Jain held discussions with Bansal regarding the introduction of bogus share capital in his companies, and it was decided that Mohta and his employees would be in touch with Bansal for bogus share capital entries.

Bansal revealed that the cash was transferred from Delhi to Kolkata through hawala operators and JP Mohta used to give instructions on behalf of Jain over phone about cash transfer.

Bansal also disclosed the modus operandi of transferring cash through hawala operators along with code words used to indicate the quantum of cash transfer.

He also alleged that the cash transactions and accommodation entries were done under direct supervision and instructions of Jain over the minister's mobile.

"Bansal further told sleuths that he had introduced Mishra to Jain over telephone and Mishra was also keeping regular contact with Jain and persons of his office to collect cash of hawala transactions. The cash transactions happened under the instructions of Jain. It was stated that funds were transferred by cheque and RGTS to companies Jain in lieu of cash receipts," the IT status report stated.

"It is proved from the above investigation that Jain was himself in touch with hawala operators Mishra and Bansal," the report added.

Previous Controversies

Before resigning on December 22, outgoing Lieutenant Governor Najeeb Jung had directed the CBI to probe into the appointment of Soumya Jain, daughter of state health minister Satyendar Jain, as advisor to Mission Director of Delhi State Health Mission.