THE NEWS DOSE DESK
Mohali|June 26,UPDATED:4.20PM
Senior Shiromani Akali Dal (SAD) leader and former Punjab minister Bikram Singh Majithia was on Thursday remanded to seven days of police custody by a Mohali court in a case filed under the Prevention of Corruption Act. The order came nearly two and a half hours after Majithia was brought to the court amidst tight security.
Vigilance Bureau Alleges Massive Financial Irregularities
The Punjab Vigilance Bureau (VB), which is probing the case, laid out a series of explosive allegations in court. Public Prosecutor Sofat revealed that Majithia is unable to account for undisclosed assets worth approximately Rs 540 crore. These assets do not reflect in any of his official income declarations.
Suspicious Cash Deposits and Foreign Funding Under Scanner
According to the prosecution, companies linked to Majithia—most notably Saraya—received Rs 161 crore in cash deposits. In addition, another Rs 141 crore allegedly came through foreign entities, raising strong suspicions of money laundering. A total of Rs 236 crore has reportedly been credited to Saraya’s accounts without adequate documentation or explanations in company filings.
Wife’s Inactive Firm Raises Red Flags
In another revelation, the prosecution said that Majithia’s wife, Ganieve Kaur—an MLA—incorporated a firm with an initial capital of Rs 1 crore. While the firm reported a modest profit of Rs 56 lakh in its first year, it has shown no further financial activity or statutory compliance since. Prosecutors flagged this as a potential front for laundering or parking illicit funds.
Alleged Threats and Misconduct During Transit
The Vigilance Bureau also submitted that Majithia behaved in a hostile and threatening manner during his arrest and transit. He allegedly issued verbal threats to VB officers and made derogatory remarks about the Punjab Chief Minister. These actions, the prosecution argued, warranted custodial interrogation.
Offshore Links: Cyprus and Singapore Firms Under Scrutiny
The prosecution further alleged that Majithia’s financial web extends overseas. Transactions with entities based in Cyprus and Singapore—considered global tax havens—have come under scrutiny. The Vigilance Bureau suspects that these offshore channels were used to route unaccounted wealth and avoid Indian regulatory oversight.
High-Security Arrest and Political Fallout
Majithia was arrested on Wednesday evening from his Amritsar residence following a raid by the Vigilance Bureau and was brought to Mohali under heavy police escort. The development triggered a political row, with SAD leaders decrying the arrest as “political vendetta.” In contrast, the ruling Aam Aadmi Party (AAP) defended the move as part of a lawful and necessary crackdown on corruption.
Focus on 2007–2012 Period of Disproportionate Asset Accumulation
Investigators have narrowed their probe to the period between 2007 and 2012, during which Majithia allegedly amassed assets far exceeding his known income and official expenditures. The VB claims it has substantial financial records and cross-border transaction trails to support its case.
Court Locked Down Amid Heavy Security
The courtroom scene on Thursday underscored the case’s political sensitivity. Mohali’s court complex saw heightened security, with multiple layers of barricading, restricted entry, and a near shutdown of normal administrative work.
Custodial Interrogation to Focus on Money Trail
With seven days of police custody now secured, investigators are expected to dig deeper into the money trail, offshore linkages, and the role of individuals and shell companies in Majithia’s financial network. The Vigilance Bureau is also likely to collaborate with central agencies like the Enforcement Directorate (ED) to pursue the foreign funding aspect more rigorously.
