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A bench of justices B Sudershan Reddy and S S Nijjar also asked the Union government to examine if the case registered against him for possessing fake passports could be probed by the CBI.
The bench contemplated invoking terror charges under anti-terror law Unlawful Activities Prevention Act and other stringent provisions of the Indian Penal Code owing to Khan`s alleged links with various arms dealers and those involved with terror-related activities, threatening the country`s security.
The bench expressed displeasure that the probe against Khan in the fake passport case had not proceeded in the right direction with right speed "as nothing is moving despite the magnitude of the issue."
The court made the observations and issued directions while hearing a public interest litigation filed by eminent jurist Ram Jethmalani, seeking repatriation of huge corpus of black money stashed in banks abroad by unscrupulous Indian citizens.
Khan was arrested last night by the Enforcement Directorate which carried out searches at his Pune home and that of his associates` premises in several cities, cracking the whip to meet today`s Supreme Court deadline.
53-year-old Ali, who was detained in Pune, was brought to Mumbai later and was grilled by the ED for nearly six hours before being put under arrest.
