Mumbai:
The Principal Judge of a sessions court in Mumbai will decide today whether the Hasan Ali Khan case falls under the jurisdiction of the court.
Fifty three-year-old Hasan Ali, a Pune-based stud farm owner arrested on Monday night for money-laundering, was produced before the court on Tuesday. He was remanded to Enforcement Directorate's (ED's) custody for a day.
Judge ML Tahaliyani adjourned the proceedings till Wednesday following differences over the issue of jurisdiction.
On Tuesday, while Hasan Ali Khan was being put through a routine medical examination in Mumbai, in Delhi, the Supreme Court told the government that it should try Mr Khan on charges of terror. Mr Khan has been found in possession of multiple passports. Combined with investigators suggesting that he is linked to international arms dealer Adnan Khashoggi, the Supreme Court said, "We feel that there's possibly a national security angle. Therefore can't this matter be probed under provisions other than the Prevention of Money Laundering Act, the Passport Act and the Foreign Exchange Management Act (FEMA)?"
Mr Khan, who was produced in court on Tuesday in a wheelchair, told the judge that he is innocent. Earlier, he told reporters that he believes he is the victim of a political conspiracy.
Known for lavish parties, cars and homes, Mr Khan, who counts stud farms among his businesses, has been accused so far by the government of piling up 8 billion dollars in different Swiss banks. For not paying taxes on that amount, he has been ordered to pay Rs 70,000 crore as a penalty. But the Supreme Court has repeatedly been urging the government to treat the issue of black money as more than a financial violation.
The court has repeatedly used Mr Khan's case to highlight that the government's attempts to trace the source and routes of black money have been lackluster. A Public Interest Litigation (PIL) filed in the Supreme Court by former Law Minister Ram Jethmalani among others has asked for the government to recover the crores of black money resting in foreign accounts. Mr Khan, declared to be India's largest tax evader, has evoked the court's interest.
In 2007, Mr Khan's residence at Pune was raided on the grounds that his wealth far exceeds his declared sources of income. Officials from the Income Tax Department and Enforcement Directorate then began scrutinizing his financial history.
Little seemed to be happening till last week, one of the two judges hearing the case thundered, "What the hell is going on?" The judges also asked for Mr Khan to be interrogated in custody.
Investigators spent eight hours at Mr Khan's home on Monday and left with the businessman for Mumbai in one of his Mercedes'. He was formally arrested on Monday night. The action didn't impress the court, which said on Tuesday, "Given the magnitude of the case... and considering not much has moved in the Enforcement Directorate and Income Tax investigations... why can't it be handed over to the CBI?"
Those who've been involved with Mr Khan's case so far say that they've stumbled across documents that suggest that of the 8 billion dollars he holds in Swiss banks, 300 million was reportedly transferred from notorious Saudi arms dealer Adnan Khashoggi. However, sources tell NDTV that the documents have not been corroborated by Swiss banks. Investigators say they're also looking into 280 million dollars allegedly invested by Ali in two offshore companies as part of a massive money-laundering operation.
As the court suggested the case be moved to the CBI, it also asked why four officials in the Enforcement Directorate who were handling Mr Khan's case were transferred. The government responded that the transfers were not deliberate, the officers were on deputation, and that efforts will be made to re-engage them with Mr Khan's case.
Given the magnitude of the case against him and the nature of some of his alleged associates, Mr Jethmalani said in court on Tuesday that he worries that Mr Khan's life is in danger.
The court has asked the Income Tax department and the Enforcement Directorate for a status report in 10 days.