The Bombay High Court Wednesday granted bail to Pune-based stud farm owner and alleged hawala operator Hasan Ali Khan in connection with a foreign exchange violation case filed against him by the Enforcement Directorate (ED).
“Hasan Ali Khan was granted bail today in FEMA case but he is likely to be in jail till the court decides an income tax matter pending against him,” said an associate of Khan who did not want to be named.
He said that another tax case was likely to come up for hearing next week.
Khan’s case dates back to May 5, 2007, when the income tax department searched various properties owned by him.
A laptop recovered during the searches contained scanned copies of documents stating that Khan had accounts in UBS Zurich, with deposits in excess of US$ 8 billion.
Subsequently, ED had charged Khan with violation of the Foreign Exchange Management Act (FEMA).
It had also obtained a copy of a notarised statement of Khan indicating that he had in 1982 opened an account in UBS Singapore with an initial deposit of US$ 1.5 million. The account was allegedly opened on the recommendation of arms dealer Adnan Khashoggi, who was also involved in the Bofors case.
However, the case against Khan weakened when the Swiss government informed India in 2013 that while Khan held three accounts in UBS for some time in 2001, there was a transaction of only about US$ 60,700 in one of them.
The Swiss government also said all other documents seized in the raids, including the one that indicated a deposit of US$ 8 billion, were false and fabricated.
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