Black money probe: SIT traces Rs 4,479 crore in Swiss banks, Rs 14,958 crore in India

December 13, 2014

Money-funds
New Delhi, Dec 13: In the first major disclosure on black money, 339 Indians have been found to have stashed Rs.4,479 crore in Swiss banks, while domestic unaccounted wealth to the tune of Rs.14,958 crore has been traced, even as the SIT recommended stringent measures to check the menace.

The Supreme Court-constituted SIT has recommended amendments to laws to provide for confiscation of domestic properties of those with illicit assets abroad and making tax evasion of over Rs.50 lakh a 'predicate offence' or a serious crime to facilitate necessary action under the Prevention of Money Laundering Act (PMLA).

The 13 recommendations made by the SIT also include imposing a threshold of Rs.10-15 lakh on holding and transporting cash to check the black money menace.

After probing into a list of 628 Indians, who figured on a list of account holders in HSBC's Geneva branch that India got from the French government, the Special Investigation Team (SIT) has said that prosecution has begun against 79 entities.

Out of these, no balance has been found in case of 289 accounts, according to a report of the SIT submitted to the court, portions of which were released by government on Friday.

"Out of the 628 persons, 201 are either non-residents or non-traceable, leaving 427 persons cases as actionable cases," an official statement said.

While the total amount involved in these cases is about Rs.4,479 crore, the Income Tax Department has finalised assessment for 79 entities involving 339 cases.

"An amount of Rs.2,926 crore has been brought to tax towards the undisclosed balances in the accounts relating to these persons," the statement said, adding that taxes along with interest at applicable rates have been levied.

While suggesting steps like curbs on cash transportation beyond a level and mandatory quoting of PAN for cash and cheque payments over Rs.one lakh, the SIT has flagged off mining, ponzi schemes, iron ore exports, misuse of export- import route as major areas prone to black money transactions.

The issue of black money has been a major political issue in India, including in the last Lok Sabha polls.

Incidentally, today's disclosure comes at a time when Switzerland has indicted Herve Falciani, a former HSBC employee, who had leaked information related to thousands of bank account holders at its Geneva branch. He was charged yesterday by the Swiss authorities for 'industrial espionage, breach of trade and banking secrecy'.

The SIT also pointed out that 'Angadias', persons carry large amounts of cash while acting as 'money couriers' in Gujarat and Maharashtra especially, were playing a key role in transfer of unaccounted money.

The SIT said that the proposed curbs "would control holding of unaccounted money to a large extent".

"This would also control transfer of unaccounted cash from one destination to other, which at present is rampant, may be Angadias or by other means," it said.

The SIT has also suggested setting up of an institutional mechanism to examine mismatch between export/import data with corresponding data of other countries on a quarterly basis to unearth black money.

In case it is found that an individual or entity owns a property abroad in violation of the law, a provision should be made in the FEMA to provide for seizure and confiscation of property of equivalent value within the country.

It also recommended establishment of a central KYC (Know Your Customer) registry to deal with the problem of multiple identities of an individual in financial transactions.

The SIT, which comprises of former Supreme Court judges M B Shah and Arjit Pasayat, as also representatives from various investigative and enforcement agencies, cited the examples of European countries to say that there should be a limit on transportation and holding of cash, as per portions of the report released by the government today.

Also, the shipping bills should include the international market price of goods and machinery sought to be exported.

"This suggestion is under consideration and is likely to be implemented within short time," the SIT said.

Besides, there should be a dynamic interaction between different stakeholders like reporting entities, Financial Intelligence Unit and law enforcement authorities.

In cases where ED has attached a property and there are income tax dues to be collected, the SIT said that the former should be open to recovering dues from the attached property.

SIT said that at least five additional chief judicial magistrates courts should be set up in Mumbai to deal with 5000 pending IT prosecution cases.

Giving update on various cases of black money, the SIT said that Directorate of Revenue Intelligence (DRI) has furnished information in 31 cases of iron ore export, of which 11 parties have admitted to undervaluation and paid Rs.116.73 crore.

In other cases, show cause notices have been issued and action will be taken in accordance with law.

Besides, the Directorate of Enforcement is attaching property worth Rs.400 crore and has arrested a person in a case relating to mining in Odisha.

In Karnataka, three attachment orders have been passed for assets worth a total of Rs.995.97 crore.

In several cases in Goa and Jharkhand, preliminary scrutiny and investigation is in progress in connection with illegal mining.

The report also pointed out that the ED is facing difficulties in taking coercive action in ponzi chit-fund cases due to a stay order by Kolkata High Court.

In one case in Jharkhand, provisional attachment orders for properties worth Rs.452.43 crore were passed while Rs.884.13 crore worth of assets have been attached in another mining case in Karnataka.

In a similar case in Andhra Pradesh, Rs.1093.10 crore worth assets have been attached.

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News Network
September 19,2024

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Narendra Modi-led government of India has abstained in the UN General Assembly on a resolution that demanded that Israel bring an end, “without delay”, to its unlawful presence in the Occupied Palestinian Territory within 12 months.

The 193-member General Assembly adopted the resolution, with 124 nations voting in favour, 14 against and 43 abstentions, including that by India.

Those abstaining included Australia, Canada, Germany, Italy, Nepal, Ukraine and the United Kingdom.

Israel and the US were among the nations who voted against the resolution titled ‘Advisory opinion of the International Court of Justice on the legal consequences arising from Israel’s policies and practices in the Occupied Palestinian Territory, including East Jerusalem, and from the illegality of Israel’s continued presence in the Occupied Palestinian Territory’.

The resolution adopted Wednesday demanded that “Israel brings to an end without delay its unlawful presence in the Occupied Palestinian Territory, which constitutes a wrongful act of a continuing character entailing its international responsibility, and do so no later than 12 months from the adoption of the present resolution.” 

The Palestinian-drafted resolution also strongly deplored the continued and total disregard and breaches by the Government of Israel of its obligations under the Charter of the United Nations, international law and the relevant United Nations resolutions, and stressed that such breaches seriously threaten regional and international peace and security.

It recognised that Israel must be held to account for any violations of international law in the Occupied Palestinian Territory, including any violations of international humanitarian law and international human rights law, and that it “must bear the legal consequences of all its internationally wrongful acts, including by making reparation for the injury, including any damage, caused by such acts.”

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News Network
September 17,2024

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As the Modi-led NDA government completes the first 100 days of its third term, the Congress party has launched a scathing attack, dubbing it as the "U-Turn Sarkar" for its failures and policy reversals.

At a press conference in Delhi, Congress spokesperson Supriya Shrinate highlighted what she called "100 days of instability, indecisiveness, and immaturity," accusing the Modi government of damaging critical sectors of the economy and public infrastructure.

Shrinate criticised the government's handling of the economy, which she described as being in "dire straits".

She argued that under Modi's leadership, sectors such as agriculture, youth employment, and infrastructure have been neglected. "These 100 days have been very heavy on the country's economy, farmers, youth, women, infrastructure, railways, and institutions," she said, adding "It has become clear that Narendra Modi has no vision to deal with the country's problems."

She went on to debunk the government's claims of progress in infrastructure development, citing multiple instances of structural failures in key projects.

“The airports inaugurated by Narendra Modi--from Jabalpur to Delhi and Rajkot--could not even withstand a single monsoon,” Shrinate pointed out. She also referenced failures such as:

•    Atal setu: Constructed at a cost of Rs18,000 crore, the bridge developed cracks soon after its inauguration.

•    Sudarshan setu in Gujarat: Opened in February 2024, it also developed cracks within months.

•    Shivaji statue collapse: The iconic statue of Chhatrapati Shivaji Maharaj was destroyed within eight months of being unveiled, an event Shrinate described as an "insult to Shivaji Maharaj."

•    Ram mandir water leakage: The sanctum sanctorum of the Ram Mandir, a symbol of faith for millions, was found to be leaking during the monsoon.

•    "Who will take accountability for these incidents?" Shrinate asked, questioning the government's competency in executing large-scale projects.

•    On railway safety, Shrinate accused the government of overseeing a period marked by frequent accidents and derailments.

•    "There have been 38 railway accidents in 100 days, resulting in 21 deaths," she stated. Despite the public outrage following the tragic Balasore accident, which killed nearly 300 people earlier this year, the Congress spokesperson said that the government has failed to take effective measures to improve rail safety.

•    She criticised the slow implementation of Kavach, an anti-collision device, stating, “The reality is that even after 21 deaths, Kavach is being installed at a pace of 2 km per year, while the Railway Minister shamelessly calls these 'minor' incidents.” Shrinate’s remarks come amidst mounting public concern over the Modi government’s inability to secure rail travel in one of the world’s largest railway networks.

In addition to infrastructure and safety concerns, Shrinate accused the Modi government of making hasty policy decisions, only to later backtrack under public pressure. "If any of your decisions affect the country negatively, it won’t become law because the government will take a U-turn on it," she said. Among the key policy reversals Shrinate cited were:

•    Lateral entry: A controversial policy of hiring private-sector professionals for bureaucratic roles, which was quietly shelved.

•    Broadcast Bill: Withdrawn after fierce opposition, highlighting the government's poor handling of policy legislation.

•    Waqf Board Bill: Another example of the government's failure to gauge the impact of its decisions.

•    NPS to UPS: Indexation policy changes that were hastily reversed after protests from key stakeholders.

"Narendra Modi's first 100 days symbolise not just U-turns, but a government that is fundamentally unsure of its direction," Shrinate remarked.

"In 100 days, 104 heinous crimes have been committed against women, in which there are 157 victims. Women are raped publicly in BJP ruled states but Narendra Modi doesn't say a word on this. But how will you speak, because you are the one who stood with those who sexually exploited the daughters of the country," she added.

The Congress's sharp critique of the Modi government's first 100 days has set the tone for the coming months, as the opposition gears up for a series of state elections and prepares for the 2024 general election.

"The country cannot afford this level of instability, immaturity, and incompetence," Shrinate concluded, calling on citizens to hold the Modi government accountable for what she described as its "endless U-turns and policy failures."

In these 100 days, Congress has made clear that it will focus on highlighting the government’s missteps in the economy, public safety, and governance, presenting itself as a viable alternative in the face of what it calls "a government in retreat."

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