Big set back for Aam Aadmi Party, Delhi health minister caught in major tax frauds, summoned by Income Tax department!

The Aam Aadmi Party which was formed with the objective of looting the common man is living up to its standards. The Income Tax department recently summoned Delhi Health Minister Satyendra Jain over money laundering & has recommended the case to the Central Bureau of Investigation (CBI).

The IT department has attached assets of companies allegedly owned by Jain & his close associates under the prohibition of Benami Property Transactions Act. According to the IT department, Jain used unaccounted income of 16.38 crores in shares of Indo Metal Implex. Akinchan Developers, Paryas info solutions and Mangalayatan Projects. Jain and his family have majority stakes in the company. The IT department also found out that most of these companies have no source of income.

Apart from this the department found that Jain purchased 123.16 bigha (49.33 acre) and 36.07 biswa land in Delhi with the same income. A closer look at the money trail shows that the illegal money was first handed over to Hawala dealers. The money was further infused into 56 shell companies and then channeled into companies controlled by Jain and his family members.

During the investigation it was also found that Jain had allegedly purchased more than 80 acres in Karala, Auchandi, Nizampur, Budham north & north-west area of Delhi in close vicinity of unauthorised colonies. The department also found out that though Jain tried to conceal transactions by using Kolkata based Hawala dealers & shell companies, he, however got the registered deed done in his name.

The Land purchased by Jain in Karala village falls in the planned development framework where more than 89 villages will be sooner or later urbanised under the Land Pooling Policy (LPP). The LPP proposes a partnered development model wherein landowners are made stakeholders in developing the housing units with the Delhi Development Authority (DDA). The agency classified ownership into two categories with different stake share. The first category includes land of 20 hectare or more. In this category the developer keeps 60% of the share, while DDA retains 40%. In the second category which has land between 2-20 hectares, the developer keeps 48% of the share, while the DDA keeps 52%.

Though a talk on LPP has been existent since 2010-11, the policy is taking final shape now. The Union Urban Development Ministry has been notified & DDA has given its nod. The role of Jain can be looked at with suspicion or conflict of interest as he occupies the position of Urban Development Ministry and can be seen as a direct beneficiary in case there is an increase in the prices of land due to policy decision.

One of the companies owned by Jain has accepted before the IT department that the land was purchased keeping in mind the decision of government to announce housing projects. The company said that the current prices of agricultural land in hand was perceived to go high as the government was expected to declare these agricultural and land lying border areas of Delhi as residential areas to promote new housing requirements of NCR (National Capital Region). The expected change in the prices of such land upon the announcement being made by the government was expected to rise in the range of 2-4 times of the current price.

The Income Tax Department is also closely looking at the transactions between Jain & his wife. Bank statements show that Jain’s wife transferred huge amounts of money which do not match up to the IT returns filed by Jain & his wife. The AAP, like always has been in denial mode.


Alok Shetty