Hasan Ali was in the judicial custody now and such an action needed prior permission of the court, his lawyer I A Bagadia argued in the sessions court here.
"Khan has refused to accept the show-cause notice issued by the adjudicating authority of New Delhi," Bagadia told PTI.
The adjudicating authority -- which comes under the Union Finance Ministry -- had issued a notice to Khan asking him to show cause as to why property seized (during the searches) should not be retained.
Meanwhile, Bagadia also told the court that ED was seeking adjournments in the case saying there were no lawyers available, "though there are five counsels with ED in Mumbai".
Khan is facing the charge of stashing away billions of dollars in foreign banks with the help of his associate Tapuriah. He is also facing close to Rs 70,000-crore tax demand notice from the Income Tax department.
The court will hear Khan's bail plea on June 7. It extended his judicial custody till June 2 today.
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