Harsha Vardhan Jain, who was arrested by the Uttar Pradesh Anti-Terrorism Squad (ATS) for running a fake embassy in Ghaziabad's Kavi Nagar, is now under investigation for suspected involvement with an overseas Rs 300 crore financial fraud and potential arms deals, senior officials said, Hindustan Times reported.
During a raid on the fake embassy, police seized pictures of Jain with controversial ‘godman’ Chandraswami and Saudi weapons trader Adnan Khashoggi. These pictures have led investigators to probe deeper into his high-profile relationships and the financial trail they may have left.
Chandraswami, who became influential during the 80s and 90s, was spiritual advisor to many former prime ministers like PV Narasimha Rao, Chandra Shekhar, and VP Singh. But his life was scandal-prone. In 1996, he was arrested on charges of financial impropriety and was even accused of funding the assassination of Rajiv Gandhi. A raid on his ashram unearthed connections with Khashoggi too.
Chandraswami allegedly introduced Jain to Khashoggi and another crucial figure—Ahsan Ali Sayed—in London in 2000, says Amitabh Yash, additional director general (ADG), law and order, UP Police, according to Hindustan Times.
Sayed, who is reported to have worked with Jain to set up at least 25 shell companies, is thought to have used these to broker deals.
Sayed operated a company known as Western Advisory Group, based in Switzerland, which brokered loans for companies in exchange for brokerage. According to investigators, the group earned brokerage fees of almost Rs 300 crore (25 million pounds) before fleeing from Switzerland. Sayed was subsequently arrested in London in 2022, according to NDTV.
The police are now probing the degree of Jain's involvement in the ₹300 crore scam on Swiss territory. His involvement in arms dealing is also under the scanner given his links to Khashoggi, UP-STF additional superintendent of police Raj Kumar Mishra said.
Jain's closeness to Sayed as well as Khashoggi has prompted the ATS to expand the scope of its investigation, investigating potential involvement in arms dealing.
Jain was arrested for running a fake embassy in Ghaziabad’s Kavi Nagar area, was reportedly in possession of 12 diplomatic passports and had visited around 40 countries in the last 10 years.
He was running the “consulate” while posing as a diplomat from the fictitious nation of Westarctica.
Among the countries that Jain visited include the UK, UAE, Mauritius, Turkey, France, Italy, Bulgaria, Cameroon, Switzerland, Poland, Sri Lanka, and Belgium, according to a report by The Indian Express.
“During the investigation, it was revealed that Jain was frequently visiting several Gulf and European countries to liaise and manage the operations of his shell companies,” the newspaper quoted unnamed sources from the special task force (STF) of the Uttar Pradesh Police.
“In some of these companies, he listed himself as the secretary, while in others he projected himself as the director. He has visited around 40 countries, including more than 30 trips to the UAE alone in the past 10 years,” the sources said, adding that police recovered diplomatic passports of 12 countries.
The STF's raid on his Kavi Nagar residence unearthed a cache of incriminating evidence, including Rs 44.7 lakh in cash, foreign currencies, multiple forged diplomatic passports, 18 fake diplomatic number plates, forged seals of the Ministry of External Affairs, and seals of companies from 34 countries.
According to a report by India Today, among the shell companies that Jain set up, included one named East India Company UK Limited. The other companies were named State Trading Corporation, Island General Trading Co LLC (Dubai), Indira Overseas Ltd (Mauritius), and Cameron Ispat Sarl (Africa).
The shell companies were reportedly used to run hawala racket, according to police.
“Jain claimed to be the consul or ambassador of Westarctica, Saborga, Poulvia, and Lodonia -- none of which are recognised as sovereign nations,” SSP Sushil Ghule, who led the STF raid was quoted as saying by CNN-News18.
“He used diplomatic insignias and paraphernalia to create an illusion of official legitimacy,” he added further.
Jain was previously arrested in 2011 after central agencies traced an unauthorised satellite phone he had brought from South Africa. While no anti-national activities were found then, a case was registered.
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