SC asks ED to respond on interrogation of Pune businessman

The Supreme Court today issued notice to the Enforcement Directorate (ED) in a public interest litigation (PIL) seeking to bring back huge funds stashed away in foreign banks.

In the petition moved by former law minister Ram Jethmalani and others, the focus today was on Pune-based businessman Hasan Ali Khan, against whom the department has registered a complaint under the Foreign Exchange Management Act (FEMA).

The petition asks the court to order the directorate to explain why Khan was not interrogated in custody, though it had information that he had Rs 36,000 crore in a Swiss bank.

The PIL was moved before the general elections but it was adjourned till today so that the issue could be sorted out peacefully. Solicitor General Gopal Subramaniam had promised to disclose all details of foreign accounts by Indians “within 48 hours” but today he sought further time to give full details.

The Bench comprising Chief Justice K G Balakrishnan and Justice P Sathasivam asked Subramaniam to respond to the query on behalf of the ED and listed the matter after three weeks.

Counsel Anil Divan, appearing for the petitioners, said that a complaint filed on December 22, 2008, by the assistant director of the ED against Khan showed that on December 8, 2006, Khan had a balance of over $8 billion in his account with UBS AG, Zurich. The government maintains that the PIL accusing it of inaction was “wild, reckless and baseless”.