Mumbai: A Mumbai court rapped the Enforcement Directorate (ED) on Wednesday for not making a proper case against Hasan Ali Khan for his custody on money laundering charges.

Adjourning the hearing, Principal Sessions Court Judge M L Tahaliyani sternly said, "You have not been able to make any case and you want me to hear you. If you want to do some homework, you can take time."

Raising the question of jurisdiction, Judge Tahaliyani said that the matter should have been first brought before a magistrate.

A real estate consultant and owner of race horses, Hasan (53) was arrested on Monday midnight under the Prevention of Money Laundering Act after prolonged searches at his premises in Pune and Mumbai. He sustained interrogation.

He is alleged to have stashed over USD 8 billion in Swiss Banks besides having links with international arms dealer Adnan Khashoggi. Hasan is also facing tax evasion charges of over Rs 40,000 crore.

Khan has claimed that he has not done anything wrong dismissing reports of having stashed huge amounts in Swiss banks.

Taking note of reports of Hasan’s alleged links with arms dealers and people associated with terror activities, the Supreme Court had on Tuesday asked the Centre to consider whether he could be booked under the anti-terror law.

Despite a remand application moved by ED on Tuesday, it was not heard by the Mumbai court which raised the issue of jurisdiction before going ahead with the

Public Prosecutor N Punde had contended that 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 had adjourned the hearing to decide the question.