New Delhi:
After being lambasted by the Supreme Court for their inaction against Hasan Ali Khan, officials who are examining his allegedly vast reserves of black money have drawn up a careful list of appointments with the businessman from Pune for this month. A 'look out circular' has also been issued to prevent Mr Khan from leaving the country.
(Read: Who is Hasan Ali?)
Famous for his stud farms in Pune, and for flashy appearances at the race-course in Mumbai, Mr Khan has for years denied that he has a lot of money, and that it cannot be accounted for. He says his line of business is scrap material. The government, however, says it has information that Mr Khan has stocked $8 billion worth of black money in foreign bank accounts.
On Thursday, the Supreme Court expressed its fury over why people like Mr Khan have yet to be interrogated despite evidence of their illegal foreign accounts. "What the hell is going on in this country?" asked one of the two judges hearing the case.
That prompted a flurry of action today with officials setting up several sessions of questioning for the businessman. Yesterday, the Enforcement Directorate questioned Mr Khan about foreign exchange violations. On Monday, a team from the Enforcement Directorate (ED) will interrogate him again. On March 10, the Enforcement Directorate and five other agencies involved will interrogate Mr Khan in Mumbai, along with five other people, including his wife Reema, who reportedly assist Mr Khan in money-laundering. The billionaire has to respond to a showcause notice from Income Tax officials by March 17.
In January 2007, the Income Tax department raided Mr Khan's residences and came across documents that proved he had multiple bank accounts. The Enforcement Directorate then contacted different countries including the UK and the UAE for information on financial transactions made by Mr Khan, which originated in his Swiss bank accounts. Investigating officials say Mr Khan's businesses cannot justify the sort of wealth he has accumulated.
It was only a fortnight ago that income tax authorities finally fined him Rs 70,000 crore for tax evasion - an order he has challenged. Mr Khan claims that records of his Swiss accounts are forged. Income tax authorities have admitted to NDTV that the documents found at Mr Khan's residences have not been corroborated by Swiss banks.
Part of the investigations against Mr Khan have focused on whether he helps powerful politicians and leading businessmen to park their money abroad. This, say officials working on his case, makes it tough to take any real action against the businessman.
The Supreme Court has, over the last few weeks, targeted the government for not doing enough to punish Indians with black money. A Public Interest litigation (PIL) filed by former Law Minister Ram Jethmalani and others, has become the basis of regular hearings where the government has been rebuked for its handling of the black money issue. The court has asked the government repeatedly to stop treating the matter as one of tax evasion, and to identify and penalize those involved.
The Opposition has linked the government's lethargic handling of the black money investigation to corruption. A Liechtenstein bank has shared a list of 26 Indians who hold foreign accounts there. The court has asked why that list cannot be made public. The government has stressed that confidentiality agreements included in financial treaties preclude details like names of individuals from entering the public realm.