HAWALA:Pune-based stud-farm owner Hassan Ali Khan

Hasan Ali Khan loves horses and that is his known occupation. But underneath he holds unaccounted deals worth Rs 35,000 crore with an alleged connection in a multi-crore Hawala scam.

Pune-based stud farm owner Hasan Ali Khan, being investigated for alleged tax evasion and money laundering, was grilled by income tax authorities.

Hasan Ali has Rs 35,000 crore of wealth, 10 Swiss Bank accounts plus what's still not known!

Syed Hasan Ali at the centre of a major money-laundering racket also has a history of several petty criminal cases in Hyderabad before he moved to Pune several years ago.

Two cases relating to the Foreign Exchange Management Act[FEMA] and a bank fraud were registered against one Hasan Ali, resident of Banjara Hills in the '90s. The police said they were yet to ascertain if he and the horse trader of Pune were one and the same.

The Income-Tax department suspects that Ali could be a big player in the hawala market.


How does hawala work?

Hawala works by transferring money without actually moving it. In fact 'money transfer without money movement' is a definition of hawala that was used, successfully, in a hawala money laundering case.

Hawala is an alternative or parallel remittance system. It exists and operates outside of, or parallel to 'traditional' banking or financial channels.

I will give one example:

Suppose Person A is working in USA and his friend say Person B is in INDIA and he is interested in buying some gadgets from USA,so Person B tells Person A's father in INDIA that he needs some X goods from USA and asks for the cost of those goods in rupees to his father.
After a week Person A sends goods which was demanded by Person B from INDIA.
After receiving the goods and checking goods are working fine,Person B pays amount in rupees to Person A's father in INDIA.

In above example no actual movement of the funds out of country is done.This is also a case of HAWALA.

After reading above example:

I have one questions for all the readers of this blog that after knowing about the HAWALA working do you think Mr.Hasan Ali will be punished or not?

Source : www.sify.com
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