Slamming the Enforcement Directorate (ED) over its handling of the Hasan Ali Khan money laundering case, a local court on Wednesday observed it was not able to make out even a single case against the businessman to seek his custody and asked the agency to do its “homework”.
“You people are not able to make out even a single case against him (Khan), so what do you want his custody for? What do you want to investigate him for? You people show one offence against him and then we can talk of custody,” Principal Sessions Court Judge M L Tahaliyani said pulling up the ED, which is already facing the heat from the Supreme Court.
The judge raised these questions while giving a severe tongue lashing to the ED even before its counsel could begin her arguments seeking the remand of 53-year-old Pune-based stud farm owner for custodial interrogation.
“You can’t keep any person in custody unless you make a case (against him),” the Judge said. Khan was yesterday remanded in custody of ED for one day and will remain in its custody till the court, which will resume hearing tomorrow, gives its order on the remand application.
The court was apparently peeved at Public Prosecutor N Punde’s apparent failure to explain the case against Khan under the Prevention of Money Laundering Act.
The PP’s admission that they were relying on certain documents ED had received from undisclosed sources, further infuriated the Judge, who said, “How can you rely on those documents from undisclosed sources.”
The court pulled up the ED for not being able to show that $0.7 million, claimed to have been transferred from Khan’s Sarasin Bank account in Switzerland, was tainted money or proceeds of crime. “So far you have not been able to show me anything,” said Tahilyani.
When the ED counsel referred to Khan obtaining multiple passports using fake documents, an angry Tahaliyani asked,” Did he make money from the passport?”
“If you want to do some home work you can take time,” said the judge and adjourned the hearing till tomorrow.
Earlier, after hearing arguments from ED and Khan’s counsel I P Bagadia on the question of jurisdiction of his court to hear the case, Tahaliyani ruled that the matter could be heard by him.
The Judge had yesterday adjourned the proceedings, saying the matter should first be brought before the metropolitan magistrate.
In its application seeking Khan’s remand, the ED had referred to the huge amounts stashed away by him abroad and links to international arms dealer Adnan Khashoggi.
The application also speaks about the multiple passports he had acquired using forged documents. Khan had been arrested by Mumbai police in this connection after the Regional Passport Office filed a complaint against him in 2008. He was later released on bail.
The ED said Khan had given instructions to transfer funds from his foreign bank accounts to various accounts outside India. It said $700,000 was transferred from Khan’s account in Sarasin Bank in Switzerland to the account of S K Financial Services based in the UK maintained by Barclays Bank, London through Citi Bank, New York.
The ED accused Khan of dealing in, acquiring and holding foreign exchange equivalent to Rs 36,000 crore.
On his Khashoggi links, it said, “This requires intensive probe as it has a bearing on national security as well.”
While taking note of accusations of Khan’s links with Khashoggi and those involved in terror activities, the Supreme Court had yesterday asked the probe agencies to weigh the option of booking him under anti-terror law.
The ED also said it had seized laptops and incriminating documents during the searches conducted at Khan’s premises.
While accusing Khan of not cooperating in the investigations, ED said it apprehended that he may tamper with evidence and dispose of the money lying in his bank accounts.
Khan, a real estate agent and stud farm owner, was arrested on Monday midnight after prolonged searches at his Pune and Mumbai residences and sustained grilling that lasted several hours.
The Supreme Court last week came down heavily on the ED for not being able to go after Khan and other alleged black money hoarders.
