The ED was left red-faced when Hasan Ali, accused of evading taxes worth thousands of crores and links with arms dealer Adnan Khashoggi, walked out on bail on Friday.
The court threw out the ED's case as it felt the agency has been unable to provide any proof that he is a money launderer, or any concrete evidence of arms dealing.
The Enforcement Directorate, after more questioning of Hasan Ali, will take the matter to a higher court.
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