Agency identified Jain Brothers' 90 shell firms operating rackets worth over 8,000 cr

The Enforcement Directorate has filed a chargesheet against Surendra Jain and Virendra Jain in connection with a probe into a Rs 8,000 crore money laundering case and attached an agricultural land belonging to them.

The BJP has been alleging that the Jain brothers helped Lalu Yadav’s daughter Misa and son-in-law acquire a farm house at Bijwasan in the Capital. Funds were arranged through sale of 1,20,000 shares of Rs 10 each in a company controlled by Misa, at a premium of Rs 90, to Jain brothers, who were arrested in March this year as part of crackdown on black money.

The EDon Fridayattached agricultural land worth Rs 1.12 crore belonging to the Jain brothers in Bhatti village in the national capital region. With this, the total amount of property attached so far in the case amounts to Rs 65.82 crore. In view of their income from laundering through shell companies, ED has provisionally attached an agricultural land, pertaining to the Jain brothers…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 Dwarka in Delhi was also attached. The total attachment of the property worth Rs 65.82 crore has been made so far in this case, the ED said in a statement.

The ED has identified at least 90 shell firms linked to the Jains. Shell companies are firms set up with nominal paid up capital, high reserves and surplus on account of receipt of high share premium, investment in unlisted companies and no dividend income or high amount of cash-in-hand.

The case emerged after the agency filed a criminal complaint in February this year under the Prevention of Money Laundering Act (PMLA) based on a chargesheet filed by the Serious Fraud Investigation Office against certain individuals and firms for providing accommodation entries by accepting funds from their beneficiaries through mediators and converting the same into share premium transactions in the beneficiary company.

The agency suspects the entire racket to be worth about Rs 8,000 crore of slush funds. 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 laundered money into the banking channel camouflaged as legitimate share premium transactions, it had said.

It emerged during the probe of other firms controlled by the Jain brothers that during a “short period of three months between the opening and closing of the accounts of these companies, there was credit and debit summations to the tune of Rs 8,000 crore, it added.

ED Jain Brothers lalu prasad yadav Shell Companies