Mumbai: Pune-based stud farm owner Hasan Ali Khan, arrested in connection with alleged massive money laundering, was on Tuesday produced before a court which remanded him in Enforcement Directorate's (ED) custody for a day.

Principal Sessions Court Judge M L Tahaliyani Khan before whom 53-year-old Khan was produced this afternoon adjourned the proceedings till Wednesday following differences over the issue of his jurisdiction. Khan was arrested by ED sleuths around midnight Monday night under the Prevention of Money Laundering Act.

Khan told waiting reporters while he was being taken to court that he was "innocent."

"I am innocent...They are just putting me in trouble. I don't understand why," he said.

As soon as the court 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 this view, but the Principal Judge adjourned the hearing till 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.

Khan, who is also a real estate consultant, earlier in the day pleaded his innocence and filed an application through his counsel who said he wanted to retract his confessions made before ED investigators on Monday. Details of his confessions were not known immediately.

Khan, accused of stashing huge sums of black money in foreign banks including USD 8 billion in UBS in Switzerland, was arrested after prolonged searches at his Pune and Mumbai residences and sustained grilling for several hours.

He was taken to the state-run JJ hospital for a routine medical check-up at around 7 am just hours after his arrest and all medical tests conducted on him showed he was in normal health.

After the series of medical tests that lasted over four hours, doctors have advised the investigators to take Khan back.

"Cardiology and nephrology tests were conducted on the patient. Surgical examination for the abdominal pain was also conducted after which it was found that Ali is fine," T P Lahane, Dean of the hospital, told a news agency.

"After the tests that lasted for over four hours, it was found that all the parameters, blood pressure and ECG of Ali are normal. We have advised the officials to take him back" Lahane said.

Meanwhile, in its remand application filed in the court of Principal Sessions Judge, the ED referred to Khan's alleged relations with international arms dealer Adnan Khashoggi, which needed to be probed.

The ED said Khan had given instructions to transfer funds from his foreign bank accounts to various accounts outside India. It said that USD 700,000 was transferred from Khan's account in Sarasin Bank in Switzerland to the account of S K Financial Services based in the UK maintained by Barclays Bank, London through Citi Bank, New York.

The ED also said that it had seized laptops and incriminating documents during the searches conducted at Khan's premises.

While accusing Khan of not cooperating in the investigations by "not revealing the facts which were subsequently uncovered by investigations and overseas enquiries", ED said it apprehended that he may tamper with evidence and dispose of the money lying in his bank accounts.

The application will come up for hearing after the court decides the question of jurisdiction to conduct the proceedings.