Court says Satyendar Jain 'prima facie' concealed 'proceeds of crime', denies bail

The court said that Mr. 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.

In a setback to AAP 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" Mr. 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 Mr. 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".