Azam Khan Sent To 14-Day Judicial Custody Day After Release From Jail

Samajwadi Party leader and former Uttar Pradesh minister Mohammad Azam Khan has been sent to jail custody for 14 days after his arrest in a money laundering case. Khan was arrested shortly after he was released on bail yesterday. He will be lodged at Dasna jail in Ghaziabad.

Khan was released yesterday after the Allahabad High Court suspended his sentence and granted him bail in the dual PAN card case. But he was arrested again by the Enforcement Directorate  in connection with case a linked to the Mohammad Ali Jauhar University in Rampur. 

The special court where he was produced today directed jail authorities to ensure his proper medical treatment.

Sources said the central agency told the court that Khan is in possession of evidence and information relating to the money laundering investigation, but is deliberately withholding it. 

His custodial interrogation is necessary to identify the alleged proceeds of crime, trace their ultimate utilisation, establish the money trail and confront him with documentary records and witnesses, the court was told. 

The money laundering investigation involves alleged financial irregularities in the construction and funding of Mohammad Ali Jauhar University that is owned by the Maulana Mohammad Ali Jauhar Trust founded and controlled by Khan.

On October 28, the ED provisionally attached land and buildings belonging to the University under the PMLA. The attached properties have an original value of Rs 426.46 crore and an estimated current market value of around Rs 1,170 crore.

The agency's investigation followed 26 FIRs registered at Azeem Nagar police station in Rampur, alleging that agricultural land belonging to farmers was forcibly acquired for the university. 
The probe also covers allegations of illegal occupation of 45 plots of enemy property, measuring approximately 34 acres, in Singhankhera village.

The ED has alleged that government funds allocated for public works were diverted towards the university's construction, government-funded projects were executed on its private campus and contractors who received government contracts routed money back to the trust as donations.

According to the agency, a company that received Public Works Department contracts worth approximately Rs 186 crore allegedly used 30-40 per cent of the contract value to purchase construction materials for the university. The ED also found that works worth Rs 6.60 crore were carried out on the university campus using MLA and MLC local area development funds.

The investigation further found that the Uttar Pradesh government had sanctioned Rs 23.41 crore for infrastructure projects, including a pandal, an OBC boys' hostel and a hospital block on the university campus.

An assessment by the District Valuation Officer estimated the construction cost of 59 buildings on the campus at Rs 494.46 crore. 

The land, acquired through 114 sale deeds, was valued at Rs 4.63 crore, taking the total campus valuation to Rs 499.09 crore. However, the trust had declared capital expenditure of only Rs 78.32 crore in its income-tax returns.

The ED has identified Rs 426.46 crore as alleged proceeds of crime and provisionally attached the university's land and buildings to that extent.

Khan's legal team has claimed that his arrest was made without due process and alleged that the SP leader is a victim of political conspiracy.