Spectrum Case- CBI tracks hawala flow into realty
The CBI probe into the trail of funds allegedly invested by A Raja and his aides focuses on tracking money that flowed out of India via hawala channels and was then pumped back into the booming south Indian realty sector through regular investment routes, reports Jayaraj Sivan. Jain brothers, promoters of Chennai’s JG Group, are suspected to be at the centre of the hawala dealings. The eldest, Daulat Jain, is Chennai-based, the second, Mahesh, runs an export firm in Delhi and the youngest, Rajesh, operates from Dubai.
Shell cos used to divert funds
The funds routed back into the country as foreign investments are said to have reflected in the accounts of a dozen companies, including Green House Promoters and Equaas Estates—both promoted by Sadhick Batcha and some family members of Raja. Most of them were shell firms, used to divert funds. But at least four of them were involved in large land acquisitions in Perambalur, Raja’s hometown, and the Nilgiris, his constituency.
In the first year, Equaas recorded a turnover of Rs 755 crore. Batcha was a small-time trader in Perambalur and his fortunes rose dramatically in 10 years. Mahesh Jain is known to have been a frequent visitor at Raja’s Delhi house and in contact with his private secretary R K Chandolia. Daulat was a familiar figure at the state guesthouse in Chennai when Raja stayed. The CBI has already raided Mahesh’s Delhi premises and Daulat’s Chennai house. The Jains were not merely Raja’s business associates, they were close to his family too. The marriage of Daulat Jain’s daughter, held earlier this year at a five-star hotel at Mahabalipuram, was attended by the entire Raja clan. Raja himself skipped the function. Among VIPs who turned up were three senior IPS officers, including a CBI investigator. Out of gratitude for their valuable customer, the brass of a nationalized bank, too, attended the wedding.
Raja is not the only DMK minister the Jains were close to. Earlier, they were trusted lieutenants of another DMK Union minister. “That was the beginning of the growth for the family, which had only a small house in Chennai till seven years ago. Today, their business empire is worth several hundred crores. Much of it is just the commission, about 5%-10%, they earned doing hawala transactions. But their ties with the senior DMK minister soured after the brothers got in touch with Raja,” said a person in the know of things.
