E India CA

Professional Updates for Chartered Accountants


‘No papers to show chartered accountant’s link with offence,’ says Court

A special court earlier this week granted bail to chartered accountant Rajesh Aggarwal, arrested in a money-laundering case, on the grounds that there are “no documents on record” to show that he is connected with the commission of offence under Sections 3 and 4 of the Prevention of Money Laundering Act.

The court stated that except two ledger account entries that allegedly show that Aggarwal received “commission”, there is no other relevant document. It also noted that he did not hold any meetings with Surendra Jain and Virendra Jain — market entry operators who are the main accused in the case.

The ED has alleged that Aggarwal played a vital role in the transactions between the Jain brothers and a company — Jagat Properties. Special Judge Naresh Kumar Malhotra considered that Aggarwal was not made an accused in the original complaint filed by the ED against the Jain brothers, and there were reasonable grounds to believe that he is “not guilty” of the offence.

“That applicant (Aggarwal) is in custody since 22.5.2017, I am of the opinion that there are reasonable grounds to believe that he is not guilty of such offences and there is no likelihood that he would commit any such offence while on bail. Accordingly applicant is admitted to bail…,” the judge said.

The ED is probing alleged laundering of over Rs 8,000 crore by the Jain brothers through a maze of shell companies. While both Jains were arrested in March, Aggarwal was arrested in May.  The ED reportedly found that Aggarwal had provided accommodation entries not only for the Jains but for Mishail Packers and Printers.

ED has “provisionally attached” a farmhouse owned by RJD chief Lalu Prasad’s daughter Misa Bharti in Bijwasan area of south Delhi held in the name of M/s Mishail Packers and Printers Pvt Ltd. It was alleged that it was purchased using Rs 1.2 crore involved in money-laundering in 2008-09.


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