J U D G M E N T

DINESH KUMAR SHARMA,J:

1. Briefly stated, the case of the directorate of enforcement is that Naresh Jain along with his brother Bimal Jain and other accomplices hatched a criminal conspiracy to cause loss to the exchequer and banks by indulging in illegal foreign exchange transactions on the basis of forged/ fabricated documents. It was alleged that for the furtherance of conspiracy, documents like identity proof, birth and education certificate, voter ID, PAN Card and signatures were Forged/fabricated to incorporate entities, operating bank accounts, facilitating bogus/over-invoiced/ under-invoiced import and export transactions and rotation of the funds through web of shell companies to cause undue benefit to the parties involved and loss to the exchequer and banks. It has been alleged the Naresh Jain also facilitated parking of funds abroad by Indian nationals through his international Hawala transaction structure created in India and in various other jurisdictions. Investigation revealed that Naresh Jain incorporated and operated 450 Indian entities and 104 foreign entities. These entities were incorporated by using original identity proofs and documents of dummy shareholders and directors as well as by fabricating identity proofs and documents of these shareholders and directors. During the search 14 digital keys for operation of foreign bank accounts and other incriminating documents and data were seized from the secret office of Naresh Jain at 361, Vardhman Grand Plaza, Sector-3, Rohini, Delhi. It has been alleged that Naresh Jain and his accomplices were operating around 337 accounts in foreign banks in Dubai, Hongkong and Singapore in respect of 104 shell firms/ companies. The ED has alleged that during the investigation conducted so far, out of 450 shell companies, 603 bank accounts of 311 companies have been examined and it has been gathered that Naresh Jain and his accomplices (including the present petitioner) rotated funds approximately to the tune of Rs. 96,000 Crores for providing accommodation entries of approximately Rs. 18,679 Crores to 973 beneficiaries. It is pertinent to mention here that the ED has stated that the bail applications of Naresh Jain and Bimal Jain were dismissed by this court and SLP filed by Bimal Kumar Jain before Hon‟ble Supreme court has also been dismissed.

2. During the course of further investigation, the role of the present petitioner has been found as under:

1. Shri Vijay Agarwal, the present Applicant, an Indore based real estate developer had also been actively involved in the entire scheme of Money Laundering, being involved in different processes of the same at different stages.

2. Shri Vijay Agarwal in lieu of development of land parcels held by M/s Graphic Buildcon into a residential project by the name of Empire Wildflower, by acquiring shares of Graphic Buildcon worth around Rs. 18 Crores from Naresh Jain/ Bimal Jain at throwaway prices and by availing loans and advances from unknown entities had actively participated in the scheme of Money Laundering including the placement, layering and integration of the proceeds of crime into the financial system.

3. Sh. Vijay Agarwal, a real estate developer based at Indore had been instrumental in the placement, concealment, use and layering of the POC generated by Shri Naresh Jain and his associates. The alleged role played by Shri Vijay Agarwal in the entire scheme of laundering of money by Sh. Naresh Jain is as follows:-

(i.) MOU entered into by Shri Vijay Agarwal with Bimal Jain and allotment of 50% shares of Graphic Buildcon (belonging to Naresh Jain) to Shri. Vijay Agarwal at throwawav prices without any agreement and also without any valuation of shares:- The acquisition of shares of Graphic Buildcon by Naresh Jain / Bimal Jain was followed by Shri Vijay Agarwal entering into an MOU in 2012 for the development of lands held by Graphic and Arrow with Bimal Jain / Naresh Jain and in furtherance of the said understandi