Black money case: ED detains Hasan Ali, searches Pune home

Pune, Mar 7 (PTI) Stud farm owner Hasan Ali Khan, accused
of massive money laundering and tax evasion, was detained by
the ED which carried out multi-city searches at his Pune home
and his associates' premises cracking the whip to meet
tomorrow's Supreme Court deadline.
Hot in pursuit of black money trail after the apex court
rap on the government, about a dozen Enforcement Directorate
(ED) officials from Mumbai came down to Pune to search the
premises of Khan in posh Koregaon Park area this morning and
he was taken away after searches lasting several hours.
Khan was detained after a search of his premises in Pune
in central Indian state Maharashtra by ED officials, sources
said.
Sources said searches were carried out at the premises of
Khan and his associates at Pune, Mumbai, Gurgaon, Kolkata and
Hyderabad.
In Kolkata, searches were conducted at the residence of
businessman Kashinath Taparia. ED sources told PTI Taparia was
an alleged aide of Khan but Taparia claimed he had no
"partnership" with him at all.
Khan's lawyer R K Gaur said he is being taken to ED's
Mumbai office for further interrogation and to possibly
confront him with "some documents."
Gaur however claimed Khan has not been detained and that
he was being taken to the ED's office as part of a "routine
investigation".
There was no official word from the ED and media
persons waiting outside Khan's residence were not briefed
about the searches.
Khan, clad in white kurta and wearing sunglasses, was
seen inside a black Mercedes that left the Tulip bungalow
located in Valentine Residential Society escorted by ED
sleuths in two cars.
Khan's detention came on the eve of the Supreme Court's
March eight deadline to the government to inform it how it
proposed to tackle black money hoarders.
In Kolkata, Regional Director of ED B Mallick told PTI,
"We raided the premises of Kashinath Taparia and his wife this
morning and found something". Taparia is brother of late
Priyamvada Birla.
Both the Taparias were present at the time of the
raids, Mallick said.
The apex court while blasting the Centre last Thursday
for not having the "will power" to act against black money
hoarders asked why Khan and others were not subjected to
custodial interrogation despite the probe agencies possessing
sufficient material against them.
Asking "What the hell is going on in this country," the
Supreme Court had asked the Government to inform it by March
eight how it is planning to go after Khan and other alleged
black money hoarders.
The previous searches at Khan's Koregaon home were in
January 2007 when the Income Tax department had raided the
premises.
"Hasan Ali Khan has not been detained till now. He has
been taken to the investigative agency's office. This is a
routine investigation. It happens in all cases. The ED
searched his premises and now has taken him to its office,"
Gaur said.
Gaur said Khan had not stashed any money in the Swiss
banks. "There is no black money lying anywhere. Yes, there is
an allegation. Everything has been accounted for. There is no
such amount (USD 8 billion) lying in UBS and UBS has also said
they have no relationship (with Khan)," he said.
About the Rs 40,000 crore penalty that the Income Tax
authorities plan to recover from Khan for tax evasion, he
said, there was no evidence of him having stashed away such
huge amounts to warrant the penalty.
Khan, who is also a real estate consultant, is under
the scanner for suspected money laundering and for allegedly
transferring cash and valuable assets outside the country by
unlawful means with the help of foreign nationals.
Khan, who is alleged to have stashed away over USD 8
billion in Swiss banks, has been summoned by the ED to appear
in person for investigations under the Prevention of Money
Laundering Act on March 10.
Khan appeared before I-T authorities in Mumbai on
February 18 apparently in connection with notices issued to
him on December 31, 2008, over alleged tax evasions in
connection with undisclosed funds in several foreign bank
accounts, including USD 8 billion in an account in the Zurich
branch of UBS. The UBS has however denied any business
relationship with him.
Tax enforcement agencies are now trying to locate
properties of Khan abroad which could be attached or auctioned
to extract from him a huge tax liability to the tune of Rs
40,000 crore.
Expressing strong displeasure at the manner in which
Khan and other alleged offenders were given repeated
opportunities for adjournments by the ED, the court said the
authorities were "hoodwinking" everybody and wondered whether
the same leniency would have been extended to other petty
offenders.
The Court also indicated that if the government fails
to act, it would be compelled to appoint a special officer for
supervising the probe against the offenders.
The bench had granted time till March eight to the
Centre to come out with its stand failing which it would be
constrained to pass appropriate orders.
The ED last Friday also issued a 'Look Out Circular' at
all airports against Khan to ensure he does not flee the
country.