Blackmoney case: SC slams govt over probe

The Supreme Court today came down heavily on the Centre on the issue of black money hoarders and asked why stud farm owner Hasan Ali Khan and other alleged offenders were not being subjected to custodial interrogation despite probe agencies possessing
sufficient material.

"What the hell is going on in this country," the court asked, while virtually snubbing Solicitor General Gopal Subramanium when he tried to make certain submissions.

The court also ordered that three key ED officials allegedly transferred midway into the probe in a case of alleged foreign exchange violation by Hasan Ali Khan, the Pune-based businessman, be reinstated forthwith. The court called the transfer as unfortunate.

A bench of justices B Sudershan Reddy and S S Nijjar also indicated that if the government fails to act, it would be compelled to appoint a special officer for supervising the probe against the offenders.

The apex court also wanted to know what prevented the government from subjecting Khan and other alleged black money launderers to custodial interrogation.

Khan, who is alleged to have stashed around $8 billion in foreign banks, had been earlier served a notice for a tax demand for about Rs 50,000 crore.

The court castigated the government for failing to interrogate Khan and other alleged offenders despite having sufficient material in the possession of investigators.

"There are instances when minor offenders are shot down for violating Section 144 CrPC, but you don't take any action against these people. We are very sorry. All these people are now free," the bench remarked voicing its dismay.

The bench granted time till Tuesday to the Centre to file its response failing which it said the court would be constrained to pass necessary orders.

The apex court had on February 10, while hearing a petition by noted lawyer Ram Jethmalani and some former bureaucrats on the issue of black money of Indians stashed abroad and its repatriation, had asked the government to ensure that Khan does not
leave the country.

"It is your duty to ensure that he is available to face prosecution," the court had said when Subramanium informed it that Khan is in India and the government is taking all necessary steps against him.

The bench also queried whether Hasan Ali Khan can be made a party to the proceedings before it.