In 1991, an arrest linked to militants in Kashmir led to a raid on hawala brokers, revealing evidence of large-scale payments to national politicians.
Based on this and further information received during Lone's interrogation, the Central Bureau of Investigation (CBI) conducted raids on the premises of Surrender Kumar Jain, his brothers, relatives and businesses.
[3] On 4 October 1993, writ petitions were filed in the Supreme court of India, on public interest under Article 32 of the Indian Constitution.
They contained allegations that Government agencies like the CBI and the revenue authorities had failed to perform their duties and legal obligations as they had "failed to investigate matters arising out of the seizure of the "Jain diaries"; that the apprehension of terrorists had led to the discovery of financial support to them by clandestine and illegal means using tainted funds obtained through 'hawala' transactions; that this had also disclosed a nexus between politicians, bureaucrats and criminals, who were recipients of money from unlawful sources, given for unlawful consideration that the CBI and other Government agencies had failed to investigate the matter, take it to its logical conclusion and prosecute all persons who were found to have committed an offence; that this was done with a view to protect the persons involved, who were very influential and powerful; that the matter disclosed a nexus between crime and corruption at high places in public life and it posed a serious threat to the integrity, security and economy of the nation; that probity in public life, the rule of law and the preservation of democracy required that the Government agencies compelled to duly perform their legal obligations and to proceed in accordance with law against every person involved, irrespective of where he was placed in the political hierarchy."
[7] and an entrepreneur from Hyderabad Anwar Alvi.The list contained politicians from multiple political parties including BJP, INC, SJP and Janata Dal, and one independent, with amounts varying between Rs.
[8] The prosecution that followed was partly prompted by a public interest petition (see Vineet Narain), but the court cases of the Hawala scandal eventually all collapsed without convictions.
In concluding the Vineet Narain case, the Supreme Court of India directed that the Central Vigilance Commission should be given a supervisory role over the CBI.