Hasan Ali, suspected of stashing Rs 36,000 crore in Swiss accounts, may never be convicted, as delays, hostile witnesses mar interrogations. But fresh facts that were revealed during an aide's interrogation point to murkier, bigger deals
Hasan Ali, suspected of stashing Rs 36,000 crore in Swiss accounts, may never be convicted, as delays, hostile witnesses mar interrogations. But fresh facts that were revealed during an aide's interrogation point to murkier, bigger deals
New facts about Pune stud farm owner Hasan Ali Khan emerged in an interrogation with Kolkata-based businessman Kashinath Tapuriah by the Ministry of Finance administered Directorate of Enforcement in 2008, which have left ED officials more knowledgeable about the extent of Khan's launderings, but none the wiser on how to catch him.
Interrogation documents (copies of which are with MiD DAY) reveal that Khan, who is being interrogated for stashing Rs 36,000 crore in seven undisclosed Swiss accounts, was also involved in a weapons sale worth USD 300 million (Rs 1,353 crore) with arms dealer Adnan Khashoggi.
It is not clear whether the money was transferred to his Swiss account.
Tupuriah, a Kolkata-based businessman, told ED officials that he came into contact with Khan in 1993 when he was looking for investors to restore the health of one of his companies, Incab Industries Ltd. He also revealed that Khan had sold large consignments of scrap steel from Dubai to the Steel Authority of India Limited and another large private Indian firm.
Tapuriah admitted to opening an account in the Swiss bank in Zurich. The documents in possession with MiD DAY also reveal that Khan had made deposits worth $1.50 million, $700 million and $300 million on different occasions.
Khan has also made several investments in real estate ufffdsomething that ED officials have just begun to investigate.
New leads, but facing delay
While the investigations have given ED officials several new leads, many are concerned that Khan would not get convicted since the case has dragged on for five years.
"In the passing years, witnesses have turned hostile or are forgetting facts. It is getting difficult to establish all the facts when the matter comes up for trial in the court. With all this, recovering the money seems to be a distant possibility," said a senior ED official who did not wish to be named.
The delay, officials say is being caused by the slow response of foreign governments to whom they have sent Letters of Requests to further investigations.
The letters, sent by a principal judge of a Sessions court to the governments of the United States of America, the United Kingdom, Singapore, Hong Kong and the United Arab Emirates on July 13, 2009, have received no replies.
The Ministry of Finance also sought a fresh round of talks with the Swiss government in November 2010 to get the money transferred to India, but there has been little progress in the past few months, said a senior ED officer, who did not wish to be named.
Another officer said Khan was served a show cause notice to explain how he amassed Rs 36,000 crore early last year.
"We asked Hasan Ali how he got the money. He has not been able to explain so far. Horse breeding cannot account for a sum as large as 36,000 crore," said an ED officer, requesting anonymity.
Evaded tax too
The Income Tax department is also investigating cases of tax evasion against Khan. On Friday, the racehorse breeder was slapped a penalty of Rs 40,000 crore for tax evasions and money laundering.
Reports have revealed that in 2005, Hasan Ali transferred $700,000 (Rs 3.15 crore) from Bank Sarasin to Citibank in New York from where it was transferred to Barclays in the UK, revealed an official.
The IT department plans to approach the Swiss authorities for more details under the International Mutual Legal Assistance pact, although Swiss law does not consider non-filing and non-payment of income tax as a criminal offence.
Investigating agencies suspect Khan to be the front for several politicians, including a senior politician in the Central government who is close to the Congress high command, and builders in Mumbai and Pune. There are reasons to suspect he could be acting as a conduit for the mafia.
Khan is also indicted in a fake passport case.
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