Mumbai:
India's supposedly biggest tax evader, Hasan Ali, surrendered before the Enforcement Directorate late on Thursday night, after the Supreme Court cancelled his bail granted by a Mumbai Sessions Court.
While appearing at the Enforcement Directorate's (ED) office, Mr Ali said that he was innocent and that he respected the Supreme Court's orders.
The Supreme Court on Thursday over-ruled a Mumbai court that had granted Mr Ali bail last week on the grounds that the Enforcement Directorate had not been able to provide any document to back its allegations against him. The court had asked Mr Ali to report to the officials handling his case every day, and not to leave Mumbai.
In a harsh critique of that decision, the Supreme Court said it had "frustrated the investigation" against Mr Ali. It also granted the Enforcement Directorate custody of Mr Ali for four days.
The apex court also asked as to why the lower court reveal the Enforcement Directorate's evidence in detail.
- Details were given out of Swiss accounts in which the ED alleges Hasan Ali has stashed $8 billion of laundered money - accounts the court said had not been used since 2001.
- An affidavit signed by Mr Ali was also presented which showed that showed arms dealer Adnan Khashoggi had transferred $300 million into his Zurich account. The court said the affidavit was not original.
- It also said the letter from US authorities that Hasan Ali transferred $7 million from a Swiss account to a party in Citibank New York, does not establish the transfer was ordered by him.
The Solicitor General even told the Supreme Court that the lower court, by disclosing the account numbers as well as those individuals who are being probed along with Hasan Ali, could have ended up compromising the investigation.
Referring to the recent death of Sadiq Batcha, a possible approver in the 2G case, he added, "The learned judge has disclosed the names of people being investigated. This may put lives of people in danger."
The ED is probing tax evasion, money laundering, and terror charges against Mr Ali.
Hasan Ali is believed to have 8 billion dollars in black money in foreign bank accounts. He has also been ordered to pay Rs. 70,000 crore as a penalty for tax evasion. His lawyer claims that Mr Ali is innocent of all the charges against him.
The businessman was arrested earlier this month and moved to Mumbai from Pune, where he is known for his lavish cars, homes, horses and parties.
The Enforcement Directorate says it needs to question Mr Ali while he's under arrest to interrogate him about violating foreign exchange laws, money laundering, and about a possible link to international arms dealer Adnan Khashoggi.
The Supreme Court had earlier this month suggested that Mr Ali be tried on terror charges because his activities seemed to involve a threat to "national security."
The Supreme Court has referred repeatedly to the government's inaction against Mr Ali in the context of a case that it is hearing on black money. The Public Interest Litigation (PIL) filed by former Law Minister Ram Jethmalani amongst others asks the government to recover crores of unaccounted-for money that has been stashed in foreign banks by Indians.