Earlier following Criminal Complaint filed by the Serious Fraud Investigating Office (SFIO) in the Tis Hazari Courts, Delhi, against Jain Brothers and others, a case under Prevention of Money Laundering Act, 2002 (PMLA) was also initiated by the Enforcement Directorate.
During the investigation under PMLA, it was revealed that M/s Jagat Project Ltd, have converted its unaccounted money to the tune of Rs. 64.70 crore into apparently legitimate transactions by way of share subscription by various companies.
Out of this amount, Rs. 62.20 crore of unaccounted money was laundered through 26 shell companies controlled by Jain Brothers. In lieu of the above accommodation entry of Rs. 62.20 Crore, Jain Brothers have received a consideration of Rs. 1,11,96,000.
The modus operandi of Jain Brothers was to launder the unaccounted money through the process of placement of funds, layering of transactions and the final integration of laundering money into the banking channel camouflaged as legitimate share premium transactions.
Funds were brought in by the mediators on behalf of the beneficiaries through the mediators. Jain Brothers were providing accommodation entries by accepting funds from their beneficiaries through mediators and converting the same into share premium transactions in the beneficiary company. In this process Jain Brothers earned money as a certain percentage of the unaccounted money converted into share premium.
Surendra Kumar Jain and Virendra Jain, the accused in this case were arrested on 20.03.2017 under PMLA and are presently under Judicial Custody. The Enforcement Directorate has filed Prosecution Complaint against both of them on 18.05.2017, before the Special Court, Patiala House Court, New Delhi.
In view of his income from laundering through shell companies, Enforcement Directorate has provisionally attached Agricultural Land, pertaining to Jain Brothers, at Bhatti Village, New Delhi, to the extent of Rs. 1,11,96,000, which is equivalent to the value of proceeds of crime.
Earlier, a hotel property involved in money laundering, to the extent of Rs. 64.70 Crore, managed by Radisson Blu at Plot No. 4, Sector-13, Dwarka, New Delhi was also attached. A total attachment of the property worth Rs. 65.82 Crore has been made so far.
Further investigation is under progress.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)