In a setback to the Enforcement Directorate probe into the money laundering scam, top tax evader Hasan Ali Khan was granted bail by the Bombay High Court on Friday.
The court observed that the ED failed to provide any evidence to show that the money amassed by the Pune stud farm owner were proceeds of crime. Khan was arrested by ED and booked under the provisions of Prevention of Money Laundering Act (PMLA).
“There are no ingredients of proceeds of crime in the case made out by the Ed against Hasan Ali. He deserves to be released on bail,” Justice A M Thipsay said while granting bail to Khan on a surety of Rs 5,00,000.
Hasan Ali, who was accused of stashing around Rs 80 crore in foreign banks and tax evasions amounting to more than Rs.50,000 crore, has, however, been asked to be available for further questioning by the IT Department and the ED. The court also said that he cannot leave Mumbai or Pune without prior permission from the investigating agencies.
Additional Solicitor General Darius Khambata, appearing for ED, requested the court to stay the bail order for a week to enable the agency to appeal against the Supreme Court judgement.
Justice Thipsay, however, turned down the plea. "There is no apprehension that he (Hasan) would abscond or tamper with evidence. Hence there is no necessity to stay the bail order,” the court observed.
Hasan Ali's lawyer I A Bagaria had argued that his client was falsely implicated in the case and he neither had links with international arms dealer Adnan Khashoggi nor has any accounts in foreign banks.
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Hasan Ali had been taken into custody by the ED on March 21, after the apex court cancelled his bail by a trail court. On Wednesday, the Bombay High Court had also exempted his wife Rheema from appearing before a special court that launched criminal proceedings against her.
In 2007-08, following an investigation the IT department had informed the Bombay High Court that Ali had run up a tax default of a massive amount. Information on his Swiss bank accounts were also revealed during a raid. Earlier this year, the ED had also accused him of having links with international arms dealer Khashoggi.