Black money case: Court denies bail to two businessmen

New Delhi, December 8

A special court on Friday denied bail to two Delhi-based businessmen, arrested by the Enforcement Directorate in connection with its probe in a Rs 8,000 crore money laundering and black money racket.

The ED had recently raided the farmhouses of RJD chief Lalu Prasad’s daughter Misa Bharti and her husband in Delhi in relation to the case.

Both Bharti and her husband have so far not been arrayed as accused by the ED in this case.

During the hearing, advocate Nitesh Rana, appearing for the ED, opposed the bail application saying the investigation in the case was at a crucial stage and if given bail, the accused may tamper with evidence.

Special Judge Naresh Kumar Malhotra refused to grant the relief to businessmen brothers Surendra Jain and Virendra Jain for allegedly being involved in a black money racket being run through shell companies.

The ED has claimed to have identified at least 90 shell firms during its probe. 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 had emerged after the ED had filed a criminal complaint in February this year under the Prevention of Money Laundering Act (PMLA).

It was 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 ED suspects that the entire racket is worth about Rs 8,000 crore of slush funds. PTI