Black money: ED moves SC seeking Hasan`s remand

The Enforcement Directorate Thursday moved the Supreme Court challenging refusal of its remand plea against the Pune-based stud farm owner allegedly involved in stashing huge amount of black money abroad.

Last Updated: Mar 17, 2011, 13:17 PM IST

New Delhi: Stung by a Mumbai court`s rejection of its plea for custodial interrogation of Hasan Ali
Khan, the Enforcement Directorate today moved the Supreme Court challenging refusal of its plea against the Pune-based stud farm owner allegedly involved in stashing huge amount of black money abroad.

A bench of justices B Sudershan Reddy and S S Nijjar
would take up the plea at 2 pm.

The bench had earlier chided the Centre for failing to
subject Khan and other alleged money launderers to custodial
interrogation.

In pursuant of the apex court`s direction, the ED had
moved a remand application before the court of Principal
Sessions Judge M L Tahaliyani on March 11, which, however,
rejected the Directorate`s plea on the ground that the agency
could not gather sufficient material in justification of its
plea.

On March 11, the ED had suffered a major setback when
judge Tahaliyani rejected its plea for Khan`s 14-day custodial
interrogation and granted him bail after observing contents of
some of its "confidential" documents were "available in
Wikipedia".

Khan is facing a Rs 70,000 crore tax demand notice
from the Income-Tax Department as well as the ED probe.

The ED had arrested 53-year-old Khan on March 7 after
being pulled up by the Supreme Court for its failure to ensure
his custodial interrogation.

While rejecting the ED`s remand application, judge
Tahaliyani had observed that had it had failed to back its
charges in a money laundering case under the Prevention of
Money Laundering Act.
"No material evidence has been presented by the ED
that shows any scheduled offence has been committed by Khan,"
Tahaliyani had observed, ordering that Khan be enlarged on
conditional bail.

He, however, barred Khan from leaving the city for
the next five days during which he was directed to report to
the ED office every day.
The court had also rejected the argument that USD
7,00,000 was transferred from Khan`s Sarasin Bank account in
Switzerland to the account of S K financial services based in
United Kingdom maintained by Barclays Bank London through Citi
bank New York and accepted defence lawyer I P Bagadia` s
contention that the account holder was one H A Kahn and not
Khan (Hasan Ali Khan).

On the charge that Khan had hoarded USD 8 billion in
UBS, Switzerland, something which the bank has denied, the
Mumbai court had said there was no material to show that money
was transferred to UBS and that tainted money was shown as
untainted.

PTI