ED arrests Arvind Kejriwal's health minister over money laundering case

The probe agency alleged that the minister in the Arvind Kejriwal government was involved in hawala transactions with a Kolkata-based firm in 2015-16, said reports.

A hawala system involves two parties transacting money with local agents carrying out the job on their behalf without the funds actually passing through formal banking channels.

The Central Bureau of Investigation (CBI) earlier filed a case against Jain and his family in August 2017 for alleged money laundering up to Rs. 1.62 crore.

The CBI alleged that 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 ED then started its probe into the money laundering allegations based on the CBI's first information report or FIR.

Delhi Deputy Chief Minister Manish Sisodia tweeted on Monday evening the arrest was made with an eye on the upcoming election in Himachal Pradesh, where Jain is the AAP's in-charge.

"A fake case is being run against Satyendar Jain for eight years. Till now ED (Enforcement Directorate) has called many times. In between, ED stopped calling for many years as they did not get anything. Now they started again because Satyendar Jain is the election in-charge of Himachal," Mr Sisodia tweeted.

"BJP is losing badly in Himachal. That is why Satyendar Jain has been arrested today so that he cannot go to Himachal. He will be released in a few days as the case is completely fake," the Deputy Chief Minister said.

Elections in the BJP-ruled hill state will be held later this year.

The AAP is eyeing a win in Himachal since its first victory in a full-fledged state Punjab.