SC questions govt's inaction over black money

NEW DELHI: Expressing unhappiness over the Government's handling of black money cases, the Supreme Court has sought an explanation on why offenders, including Pune-based businessman Hasan Ali who allegedly has huge unaccounted money in foreign banks, were not subjected to custodial interrogation.

The court directed the government to furnish its stand on the issue by next Tuesday.

"What the hell is going on in this country," asked a bench comprising Justice B Sudershan Reddy and Justice SS Nijjat when Solicitor-General Gopal Subramanium tried to defend the Government.

The court in a strong warning said if the Government failed to act, it would be compelled to appoint a special officer for supervising the probe against the offenders.

It asked the government to reinstate 3 key Enforcement Directorate officials who were allegedly transferred midway from probing the case of alleged foreign exchange violation by Ali. The court said the transfer of the officials was unfortunate. The SC bench wanted to know from Gopal Subramanium what prevented the Centre from subjecting Khan and other alleged black money launderers to custodial interrogation.

Khan, who is alleged to have stashed around $8billion 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 Supreme Court bench said.

The SC had on February 10, while hearing the petitions by lawyer Ram Jethmalani and some former bureaucrats on the issue of black money of Indians stashed abroad and its repatriation, 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," SC had said when Subramanium said Khan is in India and the Government is taking all necessary steps against him. The bench queried whether Hasan Ali Khan can be made a party to the proceedings before it.