The special court for Prevention of Money Laundering Act cases here today rejected the interim bail application filed by Madanlal Jain, an accused in a case related to Rs 5,395 crore hawala racket.
Judge A P Bhojak rejected the plea filed by Jain who had sought 30 days' interim bail on health grounds.
Jain had said that his health was deteriorating and doctors at a Mumbai-based private hospital had detected paralysis-like symptoms in him. Jain had earlier got interim bail for his wife's medical treatment.
Opposing the bail plea, ED lawyer Sudhir Gupta said that Jain had tried to influence the witnesses when he was on interim bail last month.
ED busted the racket during searches at Surat-based offices of some diamond traders including prime accused Afroz Fatta and Madanlal Jain, his aide, last year.
ED alleges that instead of importing diamonds, the duo forged import bills, claiming that they have purchased the diamonds from foreign traders. Using these bills, they allegedly transferred money abroad through the internet banking without importing a single diamond.
ED's July 19 charge sheet puts the scam at Rs 5,395 crore. Jain is at present lodged at Lajpore jail in Surat.
