The Pune-based real estate agent and stud farm owner Mr Hasan Ali Khan was on Tuesday remanded to the Enforcement Directorate (ED)'s custody for a day after the Principal Judge, Bombay City Civil and Sessions Court, expressed doubt as to whether the court had the jurisdiction to hear the case.
As soon as the proceedings began, the Principal Judge, Mr M.L. Tahaliyani, said he was doubtful “whether this court has the jurisdiction [to hear the remand application].” He said the accused should have been taken to the magistrate.
The hearing was adjourned till Wednesday when the judge is slated to decide on the issue of jurisdiction.
The court took on record Mr Hasan Ali's statement recorded by the Enforcement Directorate before his arrest at midnight on Monday under the provisions of the Prevention of Money Laundering Act (PMLA). But the defence counsel immediately submitted a retraction plea to the court saying that whatever confession was given to the ED sleuths should not be taken into consideration. The court also took on board the retraction then.
Background
Mr Hasan Ali's is allegedly one of the biggest tax evasion cases in the country.
In 2007, Income-Tax officials had raided his home and found evidence indicating transactions by Mr Ali in Swiss bank accounts. The ED was pulled into the picture and the agency sent an official to Switzerland with a letter rogatory to collect details. However, the Swiss authorities did not entertain the official for want of “dual criminality” (as tax evasion is not considered a criminal offence in Switzerland).
Based on the evidence found, the I-T Department had made a demand of Rs 50,000 crore on Hasan Ali, and this is still pending in appeal at the Income-Tax Appellate Tribunal.
The whole case came to the fore when the Supreme Court, on hearing a Public Interest Litigation on black money, asked why the Mr Hasan Ali case was not being pursued vigorously.
The apex court asked whether criminality could not be established against him under the Prevention of Money Laundering Act or whether he could not be booked under anti-terrorism laws.
The court has asked the Income-Tax Department and the ED to submit a report in 10 days' time.