Brouhaha over black money list may now end in just a whimper
8 Nov 2014 5:19 AM IST
According to sources, the list given to SIT, which is probing the illegal trail of money in foreign countries, has over 300 accounts which have no money in them. The list in all contains 628 accounts.
Add to this the fact that more than hundred names have been repeated and nearly 20 per cent of the total entries, which comes to around 122 cases, are of joint account-holders. With the startling revelation pouring in, the SIT is left with just about 217 odd accounts in the list which they can probe further.
It is learnt that the no amount is shown in almost 289 HSBC Geneva entries out of 628 furnished by HSBC. However, 319 account holders admitted to having accounts with HSBC. The Switzerland government was yet to hand over any information about the total 628 accounts, despite efforts by the SIT and the CBDT.
The SIT report said a consent waiver exercise was necessitated after Swiss authorities refused to share information and consent to secure account details was obtained in 174 cases and sent to HSBC. The CBD has completed tax assessment in 65 of these cases. The SIT, headed by retired Supreme Court Judge M B Shah with Justice (retd) Arijit Pasayat as its vice-chairman, was constituted by PM Narendra Modi in its first cabinet meeting on 27 May on the direction of the apex court. Recently, Shah had expressed dissatisfaction with the list provided by the Centre and claimed that there is nothing new in the list.
Many feel that fearing NDA government’s firm stand to weed out corruption from the country, most of the account holders have already dried up their foreign accounts, while some are in the process of laundering their money – making it difficult for the SIT and Central Board of Direct Taxes (CBDT) to get access to their respective account statements. Not the least, the SIT has also pointed out that the list does not have any details of a section of account holders. ‘It was not reflected in the list as to when these accounts were opened and about their transactions history,’ the sources said.
As per SIT’s ongoing probe, the I-T department had undertaken 150 search or survey operations against those named in the list but prosecution proceedings are yet to be done.‘Despite these issues, cases are nearing time deadline, therefore the department is mulling prosecution in close to 300 cases,’ SIT had reportedly mentioned in its ongoing probe. ‘Search and seizure operations have been carried out in 142 cases, survey in eight cases and suo moto action in 17 cases has been taken place,’ it says.
The SIT has also sought ‘renegotiation’ of various tax information exchange treaties which India has with various countries and tax haven nations in order to effectively curb the menace of illegal funds stashed abroad. Apart from the HSBC list, the SIT report provides status reports on the alleged black money cases being investigated by the CBI. In the STC export-import case, the CBI has found that Rajat Pharmachem Pvt. Ltd. in collusion with STC remitted Rs 259 crore to Singapore. But the investigation showed import and export had not taken place.
In the NAFED case, export of commodities to different countries was carried out between Renfrew Security Bank and Trust through NAFED. CBI investigation shows that the sellers and buyers were bogus companies. It is suspected that Rs 233 crore was laundered here.
The highest amount being investigated by the CBI is in a ponzi scheme. In this scheme, PACL Limited allegedly defrauded investors across the country of Rs 650 crore in the sale and development of agricultural land. This money was routed to two Australian companies - Pearl Australasia and Pearl Australasia Miraj, owned by Nirmal Bhangoo.
As per Global Financial Integrity Foundation (GFIF) India stands at number five among 142 countries in illicit financial flows and pegged the average flow of illegal funds in India at US $ 34,393 million.
Add to this the fact that more than hundred names have been repeated and nearly 20 per cent of the total entries, which comes to around 122 cases, are of joint account-holders. With the startling revelation pouring in, the SIT is left with just about 217 odd accounts in the list which they can probe further.
It is learnt that the no amount is shown in almost 289 HSBC Geneva entries out of 628 furnished by HSBC. However, 319 account holders admitted to having accounts with HSBC. The Switzerland government was yet to hand over any information about the total 628 accounts, despite efforts by the SIT and the CBDT.
The SIT report said a consent waiver exercise was necessitated after Swiss authorities refused to share information and consent to secure account details was obtained in 174 cases and sent to HSBC. The CBD has completed tax assessment in 65 of these cases. The SIT, headed by retired Supreme Court Judge M B Shah with Justice (retd) Arijit Pasayat as its vice-chairman, was constituted by PM Narendra Modi in its first cabinet meeting on 27 May on the direction of the apex court. Recently, Shah had expressed dissatisfaction with the list provided by the Centre and claimed that there is nothing new in the list.
Many feel that fearing NDA government’s firm stand to weed out corruption from the country, most of the account holders have already dried up their foreign accounts, while some are in the process of laundering their money – making it difficult for the SIT and Central Board of Direct Taxes (CBDT) to get access to their respective account statements. Not the least, the SIT has also pointed out that the list does not have any details of a section of account holders. ‘It was not reflected in the list as to when these accounts were opened and about their transactions history,’ the sources said.
As per SIT’s ongoing probe, the I-T department had undertaken 150 search or survey operations against those named in the list but prosecution proceedings are yet to be done.‘Despite these issues, cases are nearing time deadline, therefore the department is mulling prosecution in close to 300 cases,’ SIT had reportedly mentioned in its ongoing probe. ‘Search and seizure operations have been carried out in 142 cases, survey in eight cases and suo moto action in 17 cases has been taken place,’ it says.
The SIT has also sought ‘renegotiation’ of various tax information exchange treaties which India has with various countries and tax haven nations in order to effectively curb the menace of illegal funds stashed abroad. Apart from the HSBC list, the SIT report provides status reports on the alleged black money cases being investigated by the CBI. In the STC export-import case, the CBI has found that Rajat Pharmachem Pvt. Ltd. in collusion with STC remitted Rs 259 crore to Singapore. But the investigation showed import and export had not taken place.
In the NAFED case, export of commodities to different countries was carried out between Renfrew Security Bank and Trust through NAFED. CBI investigation shows that the sellers and buyers were bogus companies. It is suspected that Rs 233 crore was laundered here.
The highest amount being investigated by the CBI is in a ponzi scheme. In this scheme, PACL Limited allegedly defrauded investors across the country of Rs 650 crore in the sale and development of agricultural land. This money was routed to two Australian companies - Pearl Australasia and Pearl Australasia Miraj, owned by Nirmal Bhangoo.
As per Global Financial Integrity Foundation (GFIF) India stands at number five among 142 countries in illicit financial flows and pegged the average flow of illegal funds in India at US $ 34,393 million.
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