Documents show a chronological depiction of Khan's money-laundering activities: ED

The Supreme Court on Thursday extended till August 26 its earlier order suspending the Bombay High Court's order that granted bail to Hasan Ali Khan. Mr. Khan is detained under the Prevention of Money Laundering Act (PML) and other laws.

A three-judge Bench of Justices Altamas Kabir, Cyriac Joseph and S.S. Nijjar, acting on an appeal from the Union of India against the High Court's order, had on August 16 suspended the operation of the order and posted the matter for a Thursday hearing.

During the day's hearing, Additional Solicitor General Harin Raval submitted that documents revealed that Mr. Khan had huge funds in his accounts, to the extent of $ 800 million, with a bank outside India, and that various transactions through his foreign bank accounts revealed his association with international arms dealer Adnan Khashoggi.

Mr. Khan had obtained properties outside India through money laundering, the Enforcement Directorate said. The High Court, it said, failed to appreciate that the facts and documents had revealed a chronological depiction of Mr. Ali's money-laundering activities and maintaining of foreign accounts and huge foreign exchange transactions.

‘No prima facie case'

Seeking to justify the High Court order, Mr. Khan said in his reply that there was no prima facie case against him with respect to the offence of money-laundering punishable under Section 4 of the PML Act. He said: “Most of the transactions, which are the subject matter of the case, have taken place before the PML Act came into force.”


Supreme Court stays release of Hasan Ali on bail August 16, 2011

Hasan Ali gets bail August 12, 2011