Benami assets ‘linked’ to Delhi Minister attached: I-T

Action over alleged illegal routing of undisclosed funds over ₹13 crore by companies linked to Health Minister Satyender Jain

New Delhi, 05/03/2017: Members of BJP Yuva Morcha staging a protest demonstration against the Delhi Government near the chief ministers residence in New Delhi on March 05, 2017. Photo : R. V. Moorthy

The Income-Tax department has provisionally attached “ benami assets” allegedly linked to Delhi Health Minister Satyendar Jain in a case of illegal routing of undisclosed funds of over ₹13 crore.

The department issued the order last week under the provisions of the new Benami Act that came into force on November 1 last year. The department has identified four firms that allegedly took “accommodation (bogus) entries in the form of share capital” and purchased assets illegally.

Minister denies charge

The order, issued by the designated I-T authority under the Act in Delhi, claimed that the “cash consideration for procurement of accommodation entries was provided by Satyender Jain”.

Mr. Jain has reportedly denied any wrongdoing and has said that he has no association with the said companies since July 2013 after he got a ticket from the AAP to contest the Assembly polls.

The order said the total accommodation entries received by these firms between 2010 and 2016 is ₹13.68 crore and that it is “pertinent to note that these companies did not have any business activity during the period of funding so as to attract such huge funding in the form of share capital and share premium”.

BJP protest

Hundreds of bighas of land, allegedly purchased in and around Delhi by the said four firms, have been provisionally attached by the department under the new law. The Act carries a maximum punishment of upto seven years rigorous imprisonment and a hefty penalty, and violators could also stand to be charged under the Income Tax Act, 1961.

Meanwhile, Members of BJP’s youth wing protested near Chief Minister Arvind Kejriwal's official residence on Sunday and demanded removal of Mr. Jain for allegedly having links to companies whose properties were attached by the I-T department.

‘Corruption-free regime’

“Mr. Kejriwal came to power after promising people a corruption-free, transparent regime. But only after two years, his ministers are facing graft charges,” Sunil Yadav, the president of Bharatiya Janata Yuva Morcha's Delhi unit, said.

“If Mr. Kejriwal fails to remove Mr. Jain from his government, BJYM will resort to an indefinite agitation on the issue," he said. The protesters tried to reach near the Chief Minister's residence but were stopped by police. A few of them suffered minor injuries as they tried to make their way through barricades set up by the police.