Mumbai: Hasan Ali appears before I-T officials

Pune-based Hasan Ali is said to be the man behind a multi-billion-dollar money laundering racket.

Updated: Feb 19, 2011, 09:12 AM IST

Mumbai: Hasan Ali Khan, the Pune-based stud
farm owner alleged to be the country`s biggest tax evader,
on Friday appeared before Income Tax authorities following summons
issued to him for alleged tax evasion, the penalty on which
could run into an estimated Rs 40,000 crore.

Khan, who was "absconding" for about two years, arrived
at the Assessment Wing of the Income Tax department here
around noon and was there for about five hours, I-T sources
"Recovery and penalty proceedings are going on and the
penalty runs into several thousand crore rupees," said a
senior Income Tax official. Another official maintained
that the penalty alone could be in the region of around
Rs 40,000 crore.

The latest summons to Khan which prompted his
appearance today was served on Monday, the official said,
adding he could be called again.

In January 2007, the I-T department had raided Khan`s
residence at Koregaon Park in Pune and seized documents that
showed he allegedly had USD 8.04 billion in a UBS account in

The raid followed information that Khan had allegedly
concealed his income and not filed tax returns since 1999. The
Department had also raided his properties in Mumbai and

According to the Enforcement Directorate(ED), as of
December 8, 2006, Khan had USD 8.04 billion in the UBS

The ED figure was sourced from a 2006 letter by a UBS
wealth management executive which had said "Khan can withdraw
USD 6 billion and was free to invest this amount as and when
he chooses to do so and that the balance amount of USD 2.04
billion would remain bound with UBS until January 15, 2007,
after which Khan was free to invest the same as and when he
chooses to do so."

The ED in Mumbai also issued a nation-wide alert in
connection with Khan`s dealings to obtain information about
his investments and transactions in the country.

The ED and the Income Tax department along with the
Economic Offences Wing (EOW) of Maharashtra are probing the
illegal investments and charges of money laundering against
The ED, according to sources, now wants to obtain all
possible information from various state and central law
enforcement agencies about the finances of Khan in its probe
to track his money trail.

On February 11, the Supreme Court had asked the Centre
to ensure that Khan did not leave the country in connection
with the black money case.

The UBS bank had, however, on February 16 issued a
statement denying any business relationship with Khan.