The notices to Singh and his wife Saroj who are joint owners of the residential Kerva Dam farmhouse located near Bhopal were issued by a division bench comprising Justices Sujatha V Manohar and AP Misra.

The special leave petition moved by the assistant director of Income Tax, New Delhi, stated that pursuant to the directions of the apex court in the Jain hawala case, investigations were initiated against Singh and his family members in order to examine sources of acquisition of assets and other investments and whether they were commensurate with known sources of income.

``In addition to allegation as per Jain diaries that Singh had received a sum of Rs 10.5 lakh from Jain brothers, reliable information was alsoreceived by the department that total investment made in the farm land and property at Kerva Dam was around Rs 1.5 crore and not Rs 18.17 lakh as declared by him. It was also alleged that there were subsequent additions, alterations to the property,'' the petition contended.

The notices are returnable in July after the court vacations.

On July 22, 1997 the high court asked the department not to proceed with the valuation of the property and that if the department undertakes not to proceed, then the petition would be decided at the earliest.

On this advice the authorities assured the court that they would not proceed with the matter till the pendency of the writ petition of Singh.

On February 10 this year, an interim order was passed by the high court revoking the departmental undertaking and staying the valuation proceedings and when the department sought clarification, the court passed another order on February 19.

Singh and other respondents sought long adjournment which was granted by the court.