The key accused in a money laundering scam, Pune-based businessman Hasan Ali, is a front man for two powerful central ministers from Maharashtra, the Bharatiya Janata Party's investors' cell has charged.
Kirit Somaiya, former lawmaker and the convener of the cell, said in a statement that Ali has helped the two ministers in money laundering, transferring hawala funds to Mauritius.
Somaiya claimed that crores of rupees have been invested via the Mauritius route through the dubious participatory notes route (FII-PN Route) in both the capital market and the commodity exchange.
Both these ministers are known to Mumbai's business and broker communities as major players of these markets -- one as a major player and major investor in commodity exchange and other as a major player and major investor at stock exchanges, Somaiya charged.
Somaiya also said that Ali is facilitating few other major ruling political leaders. He also claimed that that the Prime Minister's Office, the finance ministry and the Intelligence Bureau have been in the know of these deals for the last 9 months.
Somaiya said that National Security Advisor M K Narayanan's concern about terrorist money in the stock and commodity exchanges is true.
The scam
Hasan Ali's alleged involvement in a Rs 350 billion ($7 billion) illegal money transfer racket, under probe by the Enforcement Directorate and other agencies, will now also be investigated by the Securities and Exchange Board of India.
Sebi will join the Central Bureau of Investigation, Intelligence Bureau and Research and Analysis Wing, apart from the income tax department and Enforcement Directorate in the probe, making it the largest multi-agency probe in the country in recent times.
Investigations showed that billion of rupees were routed out of India through hawala and other banking channels. The monies were subsequently 'parked' in foreign banks in Switzerland, Mauritius and the Caribbean islands, before being re-routed to India and ploughed into the Indian stock markets.
Meanwhile, the income tax department has handed over several documents pertaining to international banking transaction between Ali and his associates abroad.
Tax sleuths stumbled on the unaccounted wealth in the illegal money transfer racket during raids at Ali's upmarket residence in Koregoan area of Pune and found the details on his computers.
The department then informed the Central Board of Direct Taxes, the finance ministry and the Enforcement Directorate, which have subsequently frozen seven of the 10 accounts operated illegally by Ali in Swiss banks.
Ali's lavish lifestyle got the authorities suspicious, especially since Ali neither filed income tax returns nor does he have a Permanent Account Number. He owned expensive and flashy cars including a Porsche, a Bentley and a Mercedes. Ali, who originally is from Hyderabad, also owns huge properties in Pune, Mumbai, Hyderabad and Bangalore.
