The Enforcement Directorate (ED) has made a new arrest in its ongoing money laundering investigation concerning alleged irregularities in the Jal Jeevan Mission (JJM) scheme in Rajasthan, official sources reported on Friday.
Padamchand Jain, the proprietor of Shree Shyam Tubewell Company, was taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA), the sources informed.
Significantly, the Friday's arrest comes after ED earlier this year apprehended a man named Piyush Jain in connection to the case.
About the case
It is pertinent to note that the money laundering case originally stems after the anti-corruption bureau (ACB) registered an FIR citing that Padamchand Jain, Mahesh Mittal (proprietor of Shree Ganpati Tubewell Company), Piyush Jain, and others were involved in giving bribes to public servants to obtain illegal protection, tenders, get bills sanctioned, and cover up irregularities for work executed by them in various tenders received from the Public Health and Engineering Department (PHED).
The FIR also accused suspects of purchasing "stolen" goods from Haryana for use in their tenders/contracts and submitting "fake" work completion letters from IRCON to secure PHED contracts. The ED had previously issued a statement alleging these activities.
Accused involved in making purported fake work completion certificates
Moreover, the ED claimed that several middlemen and property dealers aided Rajasthan government PHE department officials in siphoning off "illegally earned" money from the Jal Jeevan Mission.
The investigation found that Padamchand Jain and Mahesh Mittal were involved in securing tenders for JJM works based on "purported fake work completion certificates issued by IRCON and by bribing senior PHED officials."
The ED also stated that Piyush Jain was "managing" the affairs of the accused firms and received about Rs 3.5 crore, which were considered the proceeds of crime in this case.
Meanwhile, in connection with the probe, the ED has searched premises in Jaipur and Dausa, including the residential and official premises of senior PHE department officials, former Rajasthan minister Mahesh Joshi, and IAS officer and then additional chief secretary Subodh Agarwal.
(With inputs from PTI)
