Satyendar Jain was arrested by Enforcement Directorate last month
New Delhi: Delhi Health Minister Satyendar Jain's bail petition in a money laundering case has been rejected by a city court. He was arrested last month by the Enforcement Directorate over alleged hawala transactions with a Kolkata-based firm in 2015-16. A hawala system involves two parties transacting money with local agents on their behalf without the funds passing through formal banking channels.
The Central Bureau of Investigation (CBI) had filed a case against Mr Jain and his family in August 2017 for alleged money laundering up to Rs 1.62 crore.
The CBI alleged Mr Jain and his family set up four shell firms - companies with no real business - to launder Rs 11.78 crore in 2011-12 and Rs 4.63 crore in 2015-16.
The Enforcement Directorate started its probe into the money laundering allegations based on the CBI's first information report, or FIR.
The arrest had spared a fresh war between Arvind Kejriwal, the Chief Minister of Delhi, a Union Territory, and the central government, which the Aam Aadmi Party (AAP) and other opposition leaders like Mamata Banerjee and Telangana's K Chandrashekar Rao have often alleged used central agencies to harass them.