Pune businessman Hassan Ali Khan, arrested for massive money laundering, was on Tuesday produced before a court which remanded him in the custody of the Enforcement Directorate for a day and adjourned following differences over the issue of jurisdiction.
Khan, who was arrested by the ED on Monday night under Prevention of Money Laundering Act, was produced before the court of the principal sessions court judge M L Tahaliyani on Tuesday afternoon.
As soon as the proceedings began, Tahaliyani raised the issue of jurisdiction, saying the matter should have been brought before a magistrate.
Public prosecutor N Punde said under the Prevention of Money Laundering Act, a special court was empowered to conduct the proceedings and hence he had the jurisdiction.
Defence counsel I P Bagadia too concurred with the view, but the principal judge adjourned the hearing until Wednesday after handing over Khan's remand to the ED. He will take a view on the issue of jurisdiction to hear the case on Wednesday.
Earlier, the 53-year-old real estate consultant pleaded his innocence and filed an application through his counsel who said he wanted to retract his confessions made before ED investigators on Monday.
Khan, accused to stashing huge sums of black money in foreign banks including $8 billion in UBS, Switzerland, was arrested on Monday night after prolonged searches at his Pune and Mumbai residences and sustained grilling.