New Delhi: The Enforcement Directorate (ED), the agency that investigates money laundering and foreign exchange violations, has for the second time issued summonses to UBS AG and Barclays Bank Plc under the Prevention of Money Laundering Act.
The notices are in connection with ED’s investigation of the black money case involving Pune-based businessman Hasan Ali Khan, a senior official familiar with the development told Mint on condition of anonymity.
In a related development, the Supreme Court vacation bench consisting of justices Aftab Alam and R.M. Lodha extended Khan’s custody by three more days after solicitor general Gopal Subramaniam moved an application. The application was heard late evening on Monday by justice Alam at his residence.
Khan, the main accused in a case involving alleged money laundering to the tune of $8.04 billion (Rs36,260 crore today), was sent to ED’s custody on Thursday. Separately, the income-tax (I-T) department has raised a tax demand of Rs71,874 crore on Khan.
It was alleged that Khan maintained an account with the Zurich branch of UBS and another with Barclays at its London branch. ED served summonses on the local units of both banks on the grounds that they were liable to Indian banking laws as they operated branches domestically.
Mint could not independently verify this.
The same ED official said both banks directed the agency to their respective head offices.
A UBS spokesperson said in an email that it was cooperating fully with ED and other Indian regulators with regard to its investigations into Khan, without elaborating. Barclays could not be contacted immediately for comment late on Monday night.
ED alleges that $70,000 was transferred from Khan’s account in Bank Sarasin in Switzerland to the account of SK Financial Services based in the UK and maintained by Barclays Bank, London.
The I-T department had seized documents from Khan’s residence when they conducted raids in 2007 that suggested Khan had undisclosed income worth $8.04 billion held in UBS Zurich. UBS has previously denied it held any such assets of Khan.