TNN | Jul 28, 2011, 02.49AM IST

http://timesofindia.indiatimes.com/city/mumbai/Hasan-Ali-claims-hes-being-made-a-scapegoat/articleshow/9388882.cms

Mumbai: Pune businessman Hasan Ali, accused in tax evasion and money-laundering cases, told the Bombay high court on Wednesday that he was being made a scapegoat by central agencies after the issue of black money was raised by the Supreme Court (SC).

Justice A M Thipsay is hearing a bail application by Khan after the special court, under the Prevention of Money Laundering Act, rejected his plea. This is the second time Khan has moved the HC for bail.

Advocate I A Bagaria argued that Khan was available for questioning from 2002, when a probe was initiated against him. On March 4, 2011, the SC, while hearing a public interest litigation filed by senior advocate Ram Jethmalani, spoke about black money and directed the Enforcement Directorate (ED) to file an action taken report.

Bagaria said the ED, to "cover up their inaction",' arrested Khan on March 7, 2011. "In the garb of a public interest litigation in respect of the black money issue, the relevant laws are not quoted when Jethamalani himself was Member of Parliament," said Bagaria, He said Parliament deliberately abolished the Foreign Exchange Regulation Act 1973 (FERA) on december 1, 2000, to save politicians, industrialists, bureaucrats and other people. "In that petition, Hasan Ali is only made a scapegoat," he added.

He argued that FERA and the Foreign Exchange Management Act (FEMA) were not included in the Money Laundering Act so there cannot be sale proceeds. "There is no question of black money from December 1, 2000, when FERA was abolished and FEMA enacted,'' said Bagaria. He alleged that ED was exerting pressure on lower courts, by stating that the SC was supervising the probe.

The arguments will continue on Thursday.