South Asia

India stud farm owner jailed for 'illegal money' freed

indian currency
Image caption India's underground economy accounts for 50% of GDP, the report says

The high court in the Indian city of Mumbai (Bombay) has given bail to a stud farm owner accused of tax evasion and money laundering.

Hasan Ali Khan has been in jail since March. He is alleged to have hidden $8bn (£4.9bn) in Swiss banks.

Mr Khan denies any wrong-doing.

He was arrested after the supreme court criticised the government for not having the "will power" to act against those illegally funnelling wealth overseas.

The US-based group Global Financial Integrity estimates that India has lost more than $460bn in illegal capital flight since the country gained independence in 1947.

Almost three-quarters of the illegal money that comprises India's underground economy ends up outside the country, the group said in a report last year.

India's underground economy has been estimated to account for 50% of the country's gross domestic product (GDP).

Authorities say the government is taking measures to bring back the illegal money, but say there are difficulties in sharing the information because of confidentiality treaties between countries.

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