8/18/2011

http://www.indlawnews.com/Newsdisplay.aspx?5361ecee-36bc-4f18-8a65-f4fe538d50e8

18.8.2011 (UNI) The Supreme Court today extended till August 26, the stay on the bail granted to Pune stud farm owner Hasan Ali Khan, who was arrested in March on charges of money laundering.

A bench headed by Justice Altamas Kabir fixed August 24 as the next date of hearing the petition filed by the Enforcement Directorate (ED) seeking cancellation of bail granted to Hasan Ali by the Bombay High Court on August 12.

The High Court had granted him bail on the ground that the money that allegedly passed in his foreign bank account did not seem to be his as the ED has not been able to prove even prima facie that he has stashed away the money in foreign bank.

But Additional Solicitor General Haren Rawal, however, contended that there is sufficient evidence to show Ali is involved in money laundering activities causing huge loss to the national exchequer.

The three-judge bench, including Cyriac Joseph and S S Nijjar, had on August 16 stayed Khan's release on bail granted by the High Court.

The High Court had granted bail to 53-year-old Khan on August 12, observing that the agency had failed to show that the wealth amassed by him was proceeds of crime.

'The documents reveal that Hasan Ali Khan has huge funds in his accounts to the extent of 800 million US dollars with a bank outside India,' the Enforcement Directorate had said.

The agency, in its petition, alleged that various transactions led by Khan through his foreign bank accounts reveal his association with international arms dealer Adnan Khashoggi.

'The documents point to deep linkage between Khan and Khashoggi,' the agency said while pressing for stay on the High Court's order granting bail to Khan.

The ED had said that Khan and his arrested accomplice Kashinath Tapuriah had deep links with bank officials in the US, Switzerland, Singapore, UE and other countries.

It had alleged that Khan has links with Khashoggi, and in 2003, 300 million dollars was apparently received by him from the arms dealer from weapon sales.

It had also said the accused had created a complex maze of structures and transactions to hide the true source of funds and frustrate the investigations. UNI