The Supreme Court on Tuesday stayed the release of Pune-based stud farm owner Hasan Ali Khan, accused in money laundering cases, on bail which was granted by the Bombay High Court.
A three-judge bench headed by Justice Altamas Kabir said the effect of the Bombay High Court’s order granting bail to him shall not be operational till Thursday.
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.
“Let the matter be listed on Thursday. In the meantime, order of Bombay High Court of August 12 on bail shall not be given effect to,” the bench said.
“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 contended.
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 further said while pressing for stay on Bombay High Court’s order granting bail to Khan.
The high court had granted bail to Khan on August 12 after observing that the agency had failed to show the wealth amassed by him was proceeds of crime.
“There are no ingredients of proceeds of crime in the case made out by the Enforcement Directorate against the applicant. He deserves to be released on bail,” the high court had said.
The ED had said that Khan and his arrested accomplice Kashinath Tapuriah had deep links with bank officials in the US, Switzerland, Singapore, UAE and other countries.
It had alleged that Khan has links with Khashoggi, and in 2003, $ 300 million 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.