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SC blocks escape route, cancels Hasan Ali bail
Apprehending Pune stud farm owner Hassan Ali Khan may flee the country, given his links with notorious arms dealers and the fact that he holds three to five passports, the Supreme Court cancelled his bail on Friday. This is the second time in seven months that the SC has ordered Khan’s re-arrest.
On August 12 this year, the Bombay High Court had complicated matters for the Enforcement Directorate (ED), inquiring money laundering charges, by granting bail to Khan. Although the apex court stayed the HC decision on August 16, a final decision was awaited as Khan questioned his long detention for the past six months.
Allowing the appeal filed by the ED, the bench of Justices Altamas Kabir and SS Nijjar said, “In view of the fact that the respondent (Khan) has three to five passports issued in his name and maintains links with notorious arms dealer Adnan Khashoggi, this lends support to the apprehension that he may abscond.”
The court relied on the extensive documents supplied by ED pointing out that Khan’s conduct was not above board since he manipulated and got four passports to operate his foreign bank accounts in Switzerland and Singapore, containing over `36,000 crore.
Appearing for ED, senior advocate A Mariarputham submitted that Khan’s past conduct warranted cancellation of his bail as probability was ripe that Khan may never return to India. Even in the past Khan had absconded. His ability to forge passports coupled with the fact that he was part of a large crime syndicate was also highlighted by the enforcement agency, which pointed out several bank transactions made into his bank account under the head “proceeds from arms deals”.
ED argued that in the event of his escape, there was all likelihood that Khan may exhaust his illegal money by routing it into the market through legal transactions. Further, with the money in his banks he could afford a comfortable stay abroad. ED sleuths produced evidence to suggest that when a Hyderabad court quashed one of his passports, he got a new one made at Patna, from where he escaped into Nepal to reach Singapore where a new account was opened to transfer all money from his Swiss bank account.
Khan’s latest involvement was in relation to the sale of Nizam’s diamonds in which he pocketed a commission of $30000. ED had impressed upon the court that the priceless diamonds could not be sold at the first place. Even if he brokered the deal, his complicity was made out from the fact that he offered his bank account for transferring the deal money.
On January 8, 2007, investigations were started on Enforcement Case Information Report (ECIR) against Khan, his wife Reema and his associate Kashinath Tapuria. The damning findings against Khan were reproduced in the letters rogatory (LR) sent to Hong Kong by a Mumbai court on July 13, 2009. Referring to Khan, his wife and his associate Kashinath Tapuria, the document said, “It has further transpired that they had close relations with Adnan Khashoggi and funds deposited in the accounts are proceeds from Weapons Sales.”
The LR provided further links between Khan and Arba-based arms dealer Khashoggi. In 1982, Khan opened an account at UBS Singapore with an initial deposit of US $1.5 million. One Peter Weilly, agent of Khashoggi later forwarded a sum of US $240 million into the UBS account. By December 1997, the balance in this account reached US $560 million. During this while, Khan financed Khashoggi’s US $500 million worth projects. By 2001, a refund of US $300 million was deposited as ‘Funds from Weapon Sales’ into the account. A little later, the account became non-operational.
On August 12 this year, the Bombay High Court had complicated matters for the Enforcement Directorate (ED), inquiring money laundering charges, by granting bail to Khan. Although the apex court stayed the HC decision on August 16, a final decision was awaited as Khan questioned his long detention for the past six months.
Allowing the appeal filed by the ED, the bench of Justices Altamas Kabir and SS Nijjar said, “In view of the fact that the respondent (Khan) has three to five passports issued in his name and maintains links with notorious arms dealer Adnan Khashoggi, this lends support to the apprehension that he may abscond.”
The court relied on the extensive documents supplied by ED pointing out that Khan’s conduct was not above board since he manipulated and got four passports to operate his foreign bank accounts in Switzerland and Singapore, containing over `36,000 crore.
Appearing for ED, senior advocate A Mariarputham submitted that Khan’s past conduct warranted cancellation of his bail as probability was ripe that Khan may never return to India. Even in the past Khan had absconded. His ability to forge passports coupled with the fact that he was part of a large crime syndicate was also highlighted by the enforcement agency, which pointed out several bank transactions made into his bank account under the head “proceeds from arms deals”.
ED argued that in the event of his escape, there was all likelihood that Khan may exhaust his illegal money by routing it into the market through legal transactions. Further, with the money in his banks he could afford a comfortable stay abroad. ED sleuths produced evidence to suggest that when a Hyderabad court quashed one of his passports, he got a new one made at Patna, from where he escaped into Nepal to reach Singapore where a new account was opened to transfer all money from his Swiss bank account.
Khan’s latest involvement was in relation to the sale of Nizam’s diamonds in which he pocketed a commission of $30000. ED had impressed upon the court that the priceless diamonds could not be sold at the first place. Even if he brokered the deal, his complicity was made out from the fact that he offered his bank account for transferring the deal money.
On January 8, 2007, investigations were started on Enforcement Case Information Report (ECIR) against Khan, his wife Reema and his associate Kashinath Tapuria. The damning findings against Khan were reproduced in the letters rogatory (LR) sent to Hong Kong by a Mumbai court on July 13, 2009. Referring to Khan, his wife and his associate Kashinath Tapuria, the document said, “It has further transpired that they had close relations with Adnan Khashoggi and funds deposited in the accounts are proceeds from Weapons Sales.”
The LR provided further links between Khan and Arba-based arms dealer Khashoggi. In 1982, Khan opened an account at UBS Singapore with an initial deposit of US $1.5 million. One Peter Weilly, agent of Khashoggi later forwarded a sum of US $240 million into the UBS account. By December 1997, the balance in this account reached US $560 million. During this while, Khan financed Khashoggi’s US $500 million worth projects. By 2001, a refund of US $300 million was deposited as ‘Funds from Weapon Sales’ into the account. A little later, the account became non-operational.
