Identify people with black money abroad: SC

Identify people with black money abroad: SC


The Supreme Court on Friday demanded the identity of 18 Indians who had allegedly parked Rs 43.83 crores illegally in a German bank and criticized the government's reluctance do so, saying the seriousness in tackling the black money issue went beyond income tax demands slapped on defaulters.
Solicitor general Gopal Subramaniam's stand — the government is not ready to divulge the names — forced a bench of Justices B Sudershan Reddy and S S Nijjar to counter: "Can you (government) claim privilege? What is the difficulty in disclosing the information."
Faced with the court's readiness to debate the validity of the government's stand, Subramaniam sought time to consult the government on the issue. But, he said, government was willing to show the status of the probe against individuals under black money scanner.
The solicitor general's attempt to brand the illegal deposits as a mere tax issue evoked a sharp response. The court said: "Issues involved in the case are serious and of larger dimension. It's not only about tax-avoidance."
Petitioner and former law minister Ram Jethmalani had requested the highest court to direct the government to recover an estimated Rs 70 lakh crores stashed illegally by Indians in foreign banks, especially in tax heavens.
Jethmalani's counsel, senior advocate Anil Divan, accused the government of doing little on the alleged illegal transfer of huge sums from UBS Bank by Pune-based Hasan Ali Khan and his associate Kashinath Tapuria.
The Enforcement Directorate and the I-T department are investigating an alleged transaction of $8 billion in the name of Rheema Khan, wife of Hasan Ali Khan.
The court asked Subramaniam to take instructions on Hasan Ali Khan and other individuals accused of dealing in black money being joined as parties to the pending parties.
The Central Board of Direct Taxes had told the court that the data received from Germany revealed deposits of Rs 43.83 crores by 18 Indians. They have been asked to pay Rs 24.26 crore as tax in proceedings initiated in Delhi, Mumbai, Kolkata and Chennai.
The government informed the court that more information on black money could reach it with amendments to the Double Taxation Avoidance Agreement (DTAA) signed between India and the Swiss Federal Council on August 30 last year.