Trial order rejecting bail plea of Satyendar Jain is well-reasoned based on 'material on record': Delhi HC

New Delhi [India], April 6 : The Delhi High Court on Thursday dismissed Aam Aadmi Party leader Satyendar Jain and two others bail petitions in a money laundering case and said that it do not find any illegality or perversity in trial court Judge order.
The order rejecting the bail applications are well-reasoned orders based on material on record.
Justice Dinesh Kumar Sharma said, "I consider that petitioners have failed to meet the twin conditions as provided under Section 45 PMLA as well as the conditions as laid down under Section 439 Cr.P.C. and are thus not entitled for bail. Hence, the bail applications are rejected."
The bench further noted that the constant changing pattern of the shareholding in the companies clearly indicates that Satyendar Kumar Jain was indirectly controlling the affairs of the companies. The evidence on record though speaks in volumes but has not been discussed or examined in detail so as to not cause prejudice to the petitioner.
The plea of former Delhi Minister Satyendar Kumar Jain said that he was not found in physical possession of any property needs to be rejected out-rightly as for the offence of money laundering the physical possession of proceeds of crime is not necessary, noted the bench.
Similarly, the fact that shares so acquired were transferred back to Vaibhav Jain and Ankush Jain will also make no difference as it may again be done to conceal the proceeds of crime or projected as untainted money.
The plea that the disproportionate assets were only Rs 1.47 crore and PMLA has filed the complaint for Rs.4.81 crores as proceeds of crime is not relevant at this stage as the court has only to see whether the offence has been committed and whether the accused persons meet the twin conditions, noted court.
The Delhi High Court had kept the order reserved on March 21 after the conclusion of the submissions made by the defence and prosecution sides after multiple hearings.
During arguments, Additional Solicitor General (ASG) SV Raju appeared for Enforcement Directorate contented that money laundering is crystal clear against Jain and other co-accused.
In his bail plea, Jain stated, "I appeared before ED on 7 occasions. I have cooperated and participated in the investigation. I was arrested 5 years down the line in 2022."
On November 17, 2022, the trial court dismissed the bail petition of Satyendar Jain. Jain was arrested on May 30, 2022, under sections of the Prevention of Money Laundering Act by the Enforcement Directorate and is presently in Judicial Custody in the case.
In his bail in Delhi High Court, Jain stated that the trial court Judge and ED has gravely misread and misapplied the PMLA by identifying proceeds of crime solely on the basis of accommodations entries. That accommodation entries cannot itself lead to a punishable offence under PMLA.
The Rouse Avenue Court while dismissing the bail petition said that applicant/accused Satyendar Kumar Jain has prima facie indulged in the offence of money laundering of more than Rs.1 Crore. Further, the offence of money laundering is a serious economic offence and the view of the Supreme Court of India with regard to economic offences is that they constitute a class apart and need to be visited with a different approach in the matter of bail, said the Court.
The enforcement agency has alleged that the companies which were "beneficially owned and controlled" by Jain had received accommodation entries amounting to Rs 4.81 crore from the shell companies against cash transferred to Kolkata-based entry operators through a hawala route.
The ED case is based on a Central Bureau of Investigation (CBI) complaint registered on the allegation that Satyender Jain had acquired movable properties in the name of various persons from February 14, 2015, to May 31, 2017, which he could not satisfactorily account for.