TNN | Aug 19, 2011, 01.04AM IST

http://timesofindia.indiatimes.com/city/mumbai/SC-extends-stay-on-bail-for-Hasan-Ali/articleshow/9653806.cms

NEW DELHI: The Supreme Court on Thursday extended till August 26 the stay on the bail granted to Pune stud farm owner Hasan Ali Khan, arrested on charges of money laundering.

A bench headed by Justice Altamas Kabir passed the order after hearing arguments put forth by additional solicitor general Haren Rawal, who on behalf of the Enforcement Directorate, challenged the bail granted to Khan by the Bombay high court about a week back. The apex court fixed Wednesday for further hearing on the matter.

Earlier, in the day, the apex court expressed its ire over non-appearance of the government lawyer when the matter came up for hearing. It threatened to vacate the stay after Rawal failed to appear before it. The Supreme Court had on August 16 stayed Khan's release on bail granted by the Bombay high court.

The three-judge bench had said that the effect of the high court's order granting bail to him shall not be operational till today.

The court passed the order on a petition filed by the Enforcement Directorate challenging the high court's order granting bail to Khan, who has been accused in various money laundering cases.

"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.