We have no third alternative to save our democracy, alas!Kejriwal said HSBC's Geneva branch has accounts of 700 Indians. He said France had given this list to the central government five years ago.Black money bowl boils too hot.As expected the ruling hegemony is quite safe as the latest exposure is subjected to proper investigation and the agencies have no freedom! BJP, the main opposition is screaming loud demanding full investigation as far as UPA interests are involved. But it is protecting its president dented earlier. While UPA is gearing to counter the false propaganda.

We have no third alternative to save our democracy, alas!Kejriwal said HSBC's Geneva branch has accounts of 700 Indians. He said France had given this list to the central government five years ago.Black money bowl boils too hot.As expected the ruling hegemony is quite safe as the latest exposure is subjected to proper investigation and the agencies have no freedom! BJP, the main opposition is screaming loud demanding full investigation as far as UPA interests are involved. But it is protecting its president dented earlier. While UPA is gearing to counter the false propaganda.

Indian Holocaust My Father`s Life and Time, Chapter: Nine Hundred Twenty Two

Palash Biswas

Mobile: 919903717833

Skype ID: palash.biswas44

Email: palashbiswaskl@gmail.com

Kejriwal's latest expose: Swiss banks

https://www.youtube.com/watch?v=UzDHinXToYA&feature=player_embedded

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http://youtu.be/UzDHinXToYA

Indian black money - swiss bank

http://www.youtube.com/watch?v=JbwMQiXfwJY
<iframe width="420" height="315" src="http://www.youtube.com/embed/JbwMQiXfwJY" frameborder="0" allowfullscreen></iframe>

http://youtu.be/JbwMQiXfwJY

TV5 - Black Money in Swiss Bank mainly from India

<iframe width="420" height="315" src="http://www.youtube.com/embed/hwuDPfRxL2E" frameborder="0" allowfullscreen></iframe>
http://youtu.be/hwuDPfRxL2E

We have no third alternative to save our democracy, alas!Black money bowl boils too hot.As expected the ruling hegemony is quite safe as the latest exposure is subjected to proper investigation and the agencies have no freedom! BJP, the main opposition is screaming loud demanding full investigation as far as UPA interests are involved. But it is protecting its president dented earlier. While UPA is gearing to counter the false propaganda.Kejriwal gave details of Swiss bank account holders which included top corporate honchos. The IAC activist said the government had details of 700 Swiss bank account holders in the HSBC Bank in Geneva.He said his information was based on a list of 10 account holders in HSBC bank in Geneva that was passed on to him by a senior Congress leader that was later cross-checked by a team of his India Against Corruption (IAC) organisation.Kejriwal claimed that only 100 people of those in the list of 700 people having Swiss bank accounts have been raided. "Why did the government not raid the Ambanis and the Daburs? Small fish were raided by ED, I-T Department, but the big guys were let off," Kejriwal said.

Demanding the immediate arrest of some of the most prominent business tycoons, including Mukesh Ambani, Anil Ambani, Naresh Goyal of Jet Airways and members of the Dabur Group, activists of India Against Corruption (IAC) led by Arvind Kejriwal have charged them with amassing more than Rs 3,100 crore in Swiss banks through money laundering and hawala.Kejriwal's list also included Anu Tandon, MP from Unnao whose husband Sandeep worked with RIL and whose sons are also employed by RIL.

Kejriwal said the names include:

1. Mukesh Ambani – Rs 100 crore.

2. Anil Ambani – Rs 100 crore

3. Botex Software Pvt Ltd (Company has shareholding by Reliance) – Rs 2100 crore

4. Reliance Industries – Rs 500 crore

5. Late Sandeep Tandon (former IRS officer)– Rs 125 crore. (Kejriwal said Tandon was close to Mukesh Ambani. His two sons are also in the reliance. His wife Anu Tandon has Rs 125 crores too, Kejriwal said. She is the Congress MP from Congress. Kejriwal also said she is a core group member of Rahul Gandhi)

6. Kokila Dhirubhai Ambani has no money but has an account.

7. Naresh Goyal - Rs 80 crore

As per Kejriwal, Mukesh Ambani had Rs 100 crore, Reliance Industries - Rs 500 crore, Anil Ambani - Rs 100 crore, Kokilaben Ambani also had an account but the balance was zero as on December 2006, software company Motek in which Ambanis had shares - Rs 2,100 crore.

Sandip Tandon, the director of Motek was formerly an Enforcement directorate official, had Rs 125 crore and his wife Anu Tandon Rs 125 crore.

Kejriwal claimed that Sandip Tandon, while he was in the ED, had conducted raids at Reliance Industries but later he grew very close to Mukesh Ambani and now his two sons hold senior positions in RIL. Anu Tandon is the Congress MP from Unnao and is known to be in Rahul Gandhi's team, Kejriwal claimed.

Stating that it was the first to demand that black money stashed away abroad be brought back, the BJP Friday asked the government to investigate the operationss of HSBC bank in India.Speaking shortly after activist-turn-politician Arvind Kejriwal blamed the Congress- led government for protecting those who had black money abroad, Bharatiya Janata Party spokesperson Nirmala Sitharaman also asked government what it has done so far to control black money.

Ahead of the Parliament session beginning November 22, Prime Minister Manmohan Singh is meeting leaders of UPA constituents and outside supporters to firm up a strategy to unitedly face any Opposition onslaught on issues like FDI in retail and price hike.

Singh is hosting dinner for the leaders of allied parties during which the strategy would be discussed for the upcoming Winter Session, sources said. Samajwadi Party leader Mulayam Singh Yadav and his son Akhilesh Yadav, Chief Minister of Uttar Pradesh, and National Conference leader Farooq Abdullah were invited for dinner tonight, the sources said.

Leaders of other allies like NCP, BSP, DMK and RLD have been called for dinner on Sunday, they said.

Anti-corruption activist Anna Hazare on Friday backed ex-colleague Arvind Kejriwal's allegations on black money, and sought a judicial probe against those who faced charges of having stashed black money in banks abroad.

"It is bad that the government targets small people but does nothing against prominent people," Anna Hazare said.

"Not just a government probe, but a judicial probe should be carried on in the matter," he said.

Anna Hazare was in Delhi, after visiting Guwahati.

In his fresh expose against the 'corrupt' in the Indian system, activist-turned-politician Arvind Kejriwal raked up the issue of blackmoney at a press meet in New Delhi on Friday afternoon.In his latest round of allegations, Arvind Kejriwal today targeted multinational HSBC Bank accusing it of indulging in money laundering and claimed Ambani brothers, Naresh Goyal and Congress MP Annu Tandon had parked their blackmoney in its Geneva branch.Kejriwal had earlier targetted Congress president Sonia Gandhi's son-in-law Robert Vadra's land deals, the then Law Minister and present External Affairs Minister Salman Khurshid of allegedly misusing funds allotted to his NGO and BJP president Nitin Gadkari.

"Our sources told us Mukhesh Ambani had come to the finance ministry when the list of 700 Swiss account holders were provided to India. He told the finance ministry 'we are prepared to pay the tax to buy peace and no raids should be conducted'," said Kejriwal.

According to Kejriwal, the present CBI director once said more than Rs 25 lakh crore of ill-gotten Indian money was stashed abroad while the Indian government said that an amount of Rs 6,000 crore is deposited in Swiss banks.

Interestingly, Kejriwal also claimed that one new minister SMSed me to keep up his team's efforts against Robert Vadra's land deals. "I was surprised, Sonia made him minister," he said.

He said that out of the 700 people, only around 150 people faced I-T raids. "All were small fishes with savings of Rs 5-7cr," he said.

Kejriwal alleged that the govt is not seeking account details from the Ambanis, Burman brothers, Naresh Goyal and Yashovardhan Birla and went on to demand that the government initiate a probe by the Income Tax department or the Enforcement Directorate against the Ambanis and others named in the list.

The anti-corruption activist also targeted President Pranab Mukherjee. He said, "Pranab Mukherjee made a scheme to protect these people…. planned amnesty for all the 700 Swiss account holders. When all these happened Pranab Mukherjee was finance minister. He is the President now but the country demands answers."

Making serious charges against HSBC bank, Kejriwal said the bank is involved in money laundering in the country and hence all its operations be suspended. "The way they (HSBC) made India vulnerable to corruption, terror and drugs and senior officials of the ban should be booked and tried for waging war against the country."

"Even Ambani and Burman brothers and Naresh Goyal should be arrested," he added.

Interestingly, he quoted Economic Times report dated January 04, 2012 that HSBC Plc had apologised to Mukesh Ambani for wrongly embroiling him in an investigation by IT. "So is HSBC's just saying sorry to Mukesh Ambani enough? This is a criminal case and should be thoroughly investigated," he stressed.

He further claimed that a lot of money coming through foreign institutional investors is not foreign investment but black money rerouted into the country and that HSBC operates through the FII mode.

Attacking the government over the issue, he said the government can actually stop these Swiss banks from functioning in India but they won't do so because many in government have Swiss accounts.

Kejriwal also appealed to the 32,000 Indians who work in HSBC to quit their jobs in national interest. "I appeal to them to quit their jobs. India is their country. They will get jobs in Indian banks," he said.

He said even as black money was a big threat to India's economic sovereignty, the union government was trying to shield its perpetrators. "Indian government seems to be more interested in helping the guilty rather than punishing them."

Kejriwal said the then finance minister Pranab Mukherjee had even planned an amnesty for all the 700 Swiss account holders. He also demanded strict action against HSBC bank for encouraging kidnapping, corruption and terrorism in the country.

"Like America, we should enact a law that makes it mandatory for foreign banks operating in the country to furnish a list of all account holders to the income tax department," he said, asking the thousands of HSBC bank employees to quit their jobs.

The expose-press conference — that has now become an almost weekly affair — has already served judgment on two political figures, Robert Vadra and Nitin Gadkari, and a corporate czar, Mukesh Ambani.

Addressing a press conference, Kejriwal and lawyer Prashant Bhushan alleged around Rs 6,000 crore blackmoney was lying in 700 accounts of the Geneva branch of the bank.

Kejriwal said HSBC's Geneva branch has accounts of 700 Indians. He said France had given this list to the central government five years ago. The figures are till 2006.



In his last expose on October 31, Kejriwal had termed RIL's D-6 block in the Krishna Godavari (KG) basin deal as a "classic case of crony capitalism" and said both the BJP-led National Democratic Alliance (NDA) and Congress-led UPA governments were responsible.

Asserting that the government is succumbing to illegitimate demands of Reliance Industries, Kejriwal had said Mukesh Ambani is running the country and not Prime Minister Manmohan Singh.

"Who is running the country? It seems that Ambani is running the country," said Kejriwal, pointing out the silence of Singh.

He had demanded that Reliance should be stopped from exploiting national wealth and an end should be put to "crony capitalism".

They claimed that people who had deposited "small amounts of money" in the bank were raided but "big fish" like Mukesh and Anil Ambani, Naresh Goyal ( Jet Airways), Tandon and Burmans (Anand, Pradeep and Ratan) of Dabur were "let off" at the behest of the government.

The activists claimed that the Ambani brothers had Rs 100 crore each, Reliance Group's Motech Software Rs 2,100 crore, late Sandeep and Annu Tandon Rs 125 crore each, Naresh Goyal Rs 80 crore and Dabur's Burman brothers Rs 25 crore in the list of around 700 people having accounts in HSBC as of 2006.

Spokesmen for HSBC and Burman brothers declined to comment while Tandon called the allegations "utterly baseless and motivated".

Rejecting the allegations, Mukesh Ambani-headed Reliance Industries Ltd said neither RIL or Mukesh have or had any "illegitimate" accounts anywhere in the world.

"As part of normal business, international subsidiaries of RIL deal with several global banks including HSBC. These accounts are fully complain with all regulations and are disclosed in their appropriate jurisdictions and in India.

"The continued tirade of baseless allegations being made by IAC against us appears to be instigated by vested interests," an RIL statement said.

RIL sources referred to an HSBC statement of January this year in which the Bank had apologised to Mukesh Ambani for putting the name in the list of beneficiary account holders.

The two activists of India Against Corruption (IAC) also alleged that the UPA government under Manmohan Singh was "sold out" and it is the "biggest danger" as it is surrendering economic sovereignty of the country.

They expressed fears that terrorists in Pakistan or criminals can exploit the method of money transfer in HSBC for their activities in India.

Though they do not have "official documents" with regard to the businessmen holding accounts, Kejriwal claimed they checked with several sources after receiving an input from a Congress leader, who was inducted into the government in the recent cabinet reshuffle.

He also provided statements of three persons, whose names appeared in the list and questioned by Income Tax officials, in which they have told interrogators that HSBC facilitated them opening accounts without them going to Geneva.

The money was handed to over to an agent here and whenever, they wanted to withdraw they used to contact a person in Geneva and the amount was delivered in India, he alleged.

"There is no physical transfer of money. This is money laundering. The statements by the three persons reveal that HSBCis openly and brazenly running a hawala racket in India.

"These statements are enough to arrest HSBC officials. Their operations should be immediately suspended as it is a fit case for charging them under sedition and waging war against India," Kejriwal said.

Alleging that only about 125 of the 700 persons named in the list were raided, Kejriwal sought to question the rationale behind the pick and choose policy of the government in excluding the big fish from the raids.

Denying the allegations, Tandon, who was the Managing Director of Motech Software, said "you go and ask him on what he is making such allegations. I don't think he has anything to prove this."

Ambanis deny allegations

The Ambani brothers today rejected allegations by Arvind Kejriwal that they had parked blackmoney in HSBC Bank in Geneva and denied that they had any accounts there.

Strongly denying the allegations, Mukesh Ambani-headed Reliance Industries Ltd said neither RIL or Mukesh have or had any "illegitimate" accounts anywhere in the world.

"As part of normal business, international subsidiaries of RIL deal with several global banks including HSBC. These accounts are fully complain with all regulations and are disclosed in their appropriate jurisdictions and in India.

"The continued tirade of baseless allegations being made by IAC against us appears to be instigated by vested interests," an RIL statement said.

In a separate statement, the Anil Ambani-headed Reliance Group categorically denied all allegations made by Kejriwal against him. "Mr Anil D Ambani had no bank accounts with HSBC in Geneva," it said.

The Reliance Group statement said it is "regrettable that such baseless allegations are being made by IAC at the behest of vested interests".

Targeting the Ambani brothers, Kejriwal claimed that Reliance ADAG Chairman Anil Ambani and Reliance Industries Limited Chairman Mukesh Ambani had Rs 100 crore each in banks in Switzerland. "Anil Ambani has Rs 100 crore in HSBC Bank in Geneva. Mukesh Ambani also has Rs 100 crore in HSBC Bank in Geneva," Kejriwal said, claiming he has got a few names from the list of Swiss account holders from sources. However, the HSBC Bank had in a statement in January 2012 apologised to Mukesh Ambani for putting his name on a list of alleged Swiss bank account holders.

Kejriwal also targeted Congress MP Annu Tandon, alleging she had Rs 125 crore in Swiss accounts. He alleged that a total of Rs 6,000 crore was stashed abroad. Annu Tandon reacted saying Kejriwal's allegations were baseless.

Accounts in foreign banks as per law: Dabur's Burmans

The Burman brothers of Dabur group on Friday said that they had opened accounts in foreign banks when they were NRIs and were legally allowed to do so.

Rejecting allegations made by Arvind Kejriwal at a press conference in which he had accused HSBC Geneva of money laundering and that Burman brothers had accounts there, a statement issued by Dabur India said: "It was unfortunate that every person having a foreign bank account is being painted with the same brush."

"We wish to state that these accounts were opened by the Burman family members when they were NRIs, and were legally allowed to open such accounts," it added.

Claiming that the monies have been sent out of the declared and tax-assessed incomes received in India, the statement said the amounts have been officially remitted from India through official banking channels and as per applicable FEMA guidelines.

"The complete details regarding the remittances have been voluntarily, and as per law, filed with the Income Tax Department, and appropriate taxes paid as applicable," the statement said.

Naresh Goyal has no account in HSBC Bank Geneva: Jet Airways

Rejecting allegations of stashing away unaccounted money in Swiss accounts, Jet Airways on Friday said there is no account in the name of its Chairman Naresh Goyal in HSBC Bank, Geneva, though he is entitled to have bank accounts outside India as he is an NRI.

"There is no account in the name Mr Naresh Goyal in the Swiss bank as has been alleged. Besides, Mr Naresh Goyal has been an NRI since January 1991. He is entitled to have bank accounts outside India.

"The suggestion that there has been any unaccounted money stashed away in Swiss accounts is entirely false," a statement issued by Jet Airways said.

The carrier said Goyal is an NRI and had received a routine enquiry letter from the Income Tax Department regarding a bank account at HSBC Geneva of M/S Tailwinds Ltd, a company based in the Isle of Man.

"The existence of the company M/S Tailwinds is fully disclosed to various departments of the government of India. All questions have been satisfactorily replied to the Income Tax Department," it said.

BJP rakes up black money issue again

Activist-turned-politician Arvind Kejriwal's allegations about some Indians having accounts in tax havens abroad gave BJP an opportunity to flag the issue of black money again as the party asked the government make public all details of such individuals and entities.

BJP claimed it been raising the issue of black money since the 2009 general elections when its prime ministerial candidate LK Advani had demanded that names of all individuals and entities who have stashed Indian money abroad illegally should be made public.

"BJP believes that it is a very serious which the government has to tackle. When Advani had raised it, Congress had mocked and laughed at it. Having won the elections and gauging the mood of the people, the UPA government said in 2009 that it will act on this within 100 days. But nothing has moved since then," party spokesperson Nirmala Sitharaman said.

Striking a sarcastic note, the BJP leader insisted that this was expected from Congress which "fails" to keep its promise.

Recalling the sequence of events, BJP claimed that initially 22 names were revealed by Liechtenstein but the government did not make all the data public.

Sitharaman said the then finance minister Pranab Mukherjee had announced some measures on the issue in Parliament. This included formation of a committee to look into the matter but till today the government has not shared any details on the progress.

"Government should tell what has been done by the committee. It should also now make public all the 700 names of account holders given to the government by the French government. You cannot pick and choose some names," Sitharaman said.

BJP alleged the government has hidden behind excuses like double taxation and pressure created by PILs in courts and smaller countries acting on similar information made available to them about their citizens.

The opposition party demanded a thorough investigations into the entire HSBC affair after Kejriwal's allegations that HSBC Bank has been indulging in money laundering. Kejriwal claimed that the Ambani brothers, Naresh Goyal and Congress MP Annu Tandon had parked black money in its Geneva branch, even as the bank and all the named individuals denied holding the bank accounts.

BJP said Congress appears to be revising its manifesto at its "Chintan Shivir" in Surajkund but should first look at those issues which it has "failed" to implement from the last election's manifesto.

"They had said they will act on the black money issue within 100 days of coming to power but have not done anything till date. Instead, Congress has worked for those things which were not mentioned in its manifesto like 'a-scandal-a-day' and corruption to the hilt," Sitharaman said.

BJP said it will raise this issue in the forthcoming winter session of parliament.

Asked about Congress MP Annu Tandon having a Swiss account, BJP leaders said their MPs had submitted affidavits to their respective heads (speaker and chairman) in Parliament and challenged the ruling party legislators to do the same.

1. Black money list revealed, 15 Indians named Video The Times of ...

2. www.youtube.com/watch?v=BKA4n7q-nVQ
3. 4 Feb 2011 – Black money list revealed, 15 Indians named Video The Times of India. Shashank Kumar ... BLACK MONEY OF INDIA IN SWISS BANKby ...

4. Black money in Swiss banks mainly from India: Julian Assange ...

5. articles.economictimes.indiatimes.com › Collections › Julian Assange
6. 27 Apr 2011 – Black money in Swiss banks mainly from India: Julian Assange ... He revealed this when asked when the information will come out as peopple ...

7. Black money probe: Govt may soon reveal names of those with ...

8. articles.timesofindia.indiatimes.com › Collections › Lgt Bank

   *

   by pradeep thakur 28 Nov 2011 – ... of persons who had stashed black money in LGT Bank, Liechtenstein. ... of people who figured in the list of Indians having Swiss accounts.

9. India's BLACK MONEY in swiss banks revealed.. at Wikileaks ...

10. santoshbhatt.wordpress.com/2011/08/12/1054/
11. 12 Aug 2011 – Hindu, Humanity, Islam Critic, Veda, Vedic, Sanatan Dharma, Cult (by Sam Hindu's Blog.)

12. Swiss treaty on black money by September

13. www.telegraphindia.com/1110722/jsp/business/story_14272597.jsp
14. 22 Jul 2011 – New Delhi, July 21: Switzerland will share information on money ... Indians were among the biggest depositors of black money in banks ... A note prepared by the finance ministry revealed that in the last 24 months, the Indian ...

15. How Indian black money in Swiss banks can be brought back ...

16. www.rediff.com › Business
17. 27 Jun 2011 – Swiss banks, thanks to their legal mandate for maintaining secrecy, have gained a notorious reputation over the years in favouring politically ...

18. Waiting for India's request on black money: Swiss govt - Indian ...

19. www.indianexpress.com/news/...indias...black-money-swiss.../74407...
20. 31 Jan 2011 – Tags: Indian black money, Swiss bank, Hasan Ali, illicit wealth ... them have black money there as well------and, do you think they want to reveal ...

21. Black money: Switzerland ready to reveal list of Indians, awaits ...

22. indiatoday.intoday.in/.../black-money-switzerland...reveal...indians/...
23. 21 Sep 2011 – Black money: Swiss ambassador Phillip Welti says his country is ready to reveal the names of Indians whose assets are parked in various ...

24. Images for swiss bank revealed indian black money

25. - Report images

26. More trouble for Indians, $500 bn black money stashed abroad ...

27. news.oneindia.in/.../indians-500-bn-dollars-black-money-st...

    *

    by Nairita Das 13 Feb 2012 – However, many started criticising the CBI and Central government as the list containing the names of Indians holding black money Swiss Bank, ...

Complete coverage: Kejriwal targets Ambanis, Daburs over black money

Published: Friday, Nov 9, 2012, 13:38 IST
Agency: DNA
Friday, Nov 9, 2012 13:36 IST
    Also, many have come forward to suggest the names of scamsters. "Today's expose relates to the return of all the black money from Swiss banks. According to the statement of a former CBI official, there is 25,000 lakh crores in black money stashed away in Swiss banks," said Kejriwal.
Friday, Nov 9, 2012 13:38 IST
    According to a CD provided by the French government earlier in the year, there are 700-odd account holders of hawala or black money accounts in HSBC Bank on December 2006. While Mukesh and Anil Ambani both had Rs100 crore stashed in the HSBC bank back in December 2006.
Friday, Nov 9, 2012 13:41 IST
    One name that keeps cropping along side the Ambanis is that of Sandeep Tandon. An official in the Enforcement Directorate, who had quit to join the Reliance industries, Sandeep Tandon became close to the Reliance group. In fact, his two sons are office-bearers in Reliance.
    Incidentally, his wife Anu Tandon also has stashed Rs125 crore in her HSBC branch.
   
       
            She is also a member of Rahul Gandhi's core group.
   
Friday, Nov 9, 2012 13:43 IST
    Stating that the total amount of black money in HSBC branch is Rs6000 crore, Kejriwal said, "Naresh Goyal has Rs100crore in his Swiss bank account."
   
    As for the modus operandi used to deposit black money in their accounts, Kejriwal said, "There is no need to go to a teller machine in the State Bank of India. Rather, a person comes to your house only after a phone call. One phone call to the  HSBC Geneva would trigger the delivery process, all telephonically."
Friday, Nov 9, 2012 13:51 IST
    The activist also provided a detailed questionnaire answered by three account holders, including one Parminder Kalra, whose premises were raided earlier in the year.
    Kejriwal said, "The money transfer would be done by an agent in Delhi. Similarly, if one wants to withdraw the money, all one had to do was call the HSBC in Geneva and the amount would be delivered to you."
Friday, Nov 9, 2012 13:54 IST
    Here is the list of people Arvind Kejriwal named:
    Mukesh Dhirubhai Ambani – Rs 100 crores
    Anil Dhirubhai Ambani – Rs 100 crores
    Motech Software Private Ltd (Reliance Group company) – Rs 2,100 crores
    Reliance Industries Ltd – Rs 500 crores
    Sandeep Tandon – Rs 125 crores
    Anu Tandon – Rs 125 crores
    Kokila Dhirubhai Ambani – She has an account but there was no balance on that date
    Naresh Kumar Goyal – Rs 80 crores Burmans (3 family members) – Rs 25 crores
    Yashovardhan Birla – No balance
Friday, Nov 9, 2012 14:00 IST
    The three whose premises were raided had promised to pay their taxes on the black money they have deposited in HSBC, Geneva. "But the big question is why only a few of the 700-odd names in the list were searched," asked Kejriwal.
   
    Accusing the Indian government of dragging its feet on the issue of getting the black money stashed away in Swiss banks back to the country, Kejriwal said, "Every company or individual named in the list of HSBC account holders should be probed. Then honest officials should be put deployed to explain every suspect entry in their books."
Friday, Nov 9, 2012 14:03 IST
    Raid the Ambanis, Dabur's Burman, Jet's Goyal and Yash Birla for black money: Kejriwal
Friday, Nov 9, 2012 14:13 IST
    Stating that the information on black money was sourced from government records, Kejriwal said, "What we cannot understand why India, unlike the USA, is not able to act against banks like HSBC and UBS, which openly operate in the most brazen fashion in both India and the US."
Friday, Nov 9, 2012 14:15 IST
    Demand put forward by the IAC activists:
   
    Arrest HSBC bank's top officers and book them under the Prevention and Corruption Act. Seeking that the bank's officials be booked for sedition, Kejriwal said, "Laundering black money is only making the country vulnerable to terror and drugs."
   
    "Like America, we should enact a law that makes it mandatory for foreign banks operating in the country to furnish a list of all account holders to the income tax department," the activist said.
    Appealing the 25,000 workers in HSBC to quit their jobs, for the sake of the country, Kejriwal said, "It is this black money stashed away in foreign banks that is routed back into the markets in the name of foreign direct investments (FDI)."
    * It may be recalled that earlier in the year, HSBC had issued an apology for naming him in its list of account holders.
Friday, Nov 9, 2012 14:18 IST

Rs 70,00,000 crore rupees in swiss bank. Let us start a Mass movement to bring back our Money

Dear Friends what is our role towards society in this, can we make it possible to bring back this amount

Latest update after Swiss Bank has agreed to disclose the funds& Our Indians' Money - 70, 00,000 Crores Rupees In Swiss Bank
1) Yes, 70 lakhs crores rupees of India are lying in Switzerland banks. This is the highest amount lying outside any country, from amongst 180 countries of the world, as if India is the champion of Black Money.

2) Swiss Government has officially written to Indian Government that they are willing to inform the details of holders of 70 lakh crore rupees in their Banks, if Indian Government officially asks them.

3) On 22-5-08, this news has already been published in The Times of India and other Newspapers based on Swiss Government's official letter to Indian Government.

4) But the Indian Government has not sent any official enquiry to Switzerland for details of money which has been sent outside India between 1947 to 2008.. The opposition party is also equally not interested in doing so because most of the amount is owned by politicians and it is every Indian's money.

5) This money belongs to our country. From these funds we can repay 13 times of our country's foreign debt. The interest alone can take care of the Center s yearly budget. People need not pay any taxes and we can pay Rs. 1 lakh to each of 45 crore poor families.

6) Let us imagine, if Swiss Bank is holding Rs. 70 lakh Crores, then how much money is lying in other 69 Banks? How much they have deprived the Indian people? Just think, if the Account holder dies, the bank becomes the owner of the funds in his account.

7) Are these people totally ignorant about the philosophy of Karma? What will this ill-gotten wealth do to them and their families when they own/use such money, generated out of corruption and exploitation?

8) Indian people have read and have known about these facts. But the helpless people have neither time nor inclination to do anything in the matter. This is like "a new freedom struggle" and we will have to fight this.

9) This money is the result of our sweat and blood.. The wealth generated and earned after putting in lots of mental and physical efforts by Indian people must be brought back to our country.

As a service to our motherland and your contribution to this struggle, please circulate this note amongst your friends and relatives and convert it into a mass movement.

Petition Letter

Respected Sir/Madam,

On receipt of this information, I am indepted to start a Campaign for our dear MOTHERLAND INDIA..... Kindly do your part to make our Country what is ought to be.....

_____________________________________________________________________

Dear Friends what is our role towards society in this, can we make it possible to bring back this amount

Latest update after Swiss Bank...
[Your name]

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http://www.change.org/en-IN/petitions/70-00-000-crore-indian-black-money-in-one-swiss-bank-lets-bring-back-our-money

INDIA`S BLACK MONEY IN SWISS BANK

This is not so surprising .India is the world`s most corrupt country.Corruption is not new in India.Recently due to international pressure, Swiss government agreed to disclose the names of the account holders only if the respective government formally asked for it.
Black money in Swiss banks — Swiss Banking Association report, 2006 details bank deposits in the territory of Switzerland by nationals of following countries:
Top five
India—- $1,456 billion
Russia —$ 470 billion
UK  ——-$390 billion
Ukraine – $100 billion
China —–$ 96 billion
India has more money in Swiss bank than all the other countries combined.Second best Russia has 4 times lesser deposit. US is not even there in the counting in top five.
609 people in India having legal property more than Rs- 100 crores (Rs- 10 Million). Indian President one day living cost is Rs-8 crore, living in a place where 350 flats.One day Indian Parliament running cost is around 9 crore Rupees.Britishers looted 350 Lakh Crore in 250 years whereas Indian himself looted 330 crore. 70 Lakh crore only deposited in swiss bank. 84000 corrupt people in India.India has around 450 Billion dollar of coal deposit & 170 billion of iron ore deposit,looted by state politicians .According to Indian Government around 1 Lakh place in India where people doing illegal mining.
Dishonest persons, scandalous politicians and corrupt IAS, IPS officers have deposited in foreign banks in their illegal personal accounts a sum of about $ 1500 billion, which have been misappropriated by them. From 2003 to 2010 out of 5,635 IPS officers fifty(50) IPS officers were resigned and joined private company.
This amount is about 13 times larger than the country's foreign debt. With this amount 45 crore poor people can get Rs 1,00,000 each. This huge amount has been appropriated from the people of India by exploiting and betraying them.
Some 80,000 people travel to Switzerland every year, of whom 25,000 travel very frequently."Obviously, these people won't be  tourists.

Why our Indian Government is not asking to swiss Bank? Well the answer is simple , our Government is working under the influence of those politicians & industrialists who have huge deposit in Swiss bank.They cann`t expose their own people.
USA have settled their Swiss bank Account & their top Billionares in their countries paid to their country 50% of their Money which includes Gates & Bloomberg.Italy got 6.4 Billion dollar from swiss Bank,Germany got 5.7 Billion dollar from swiss Bank & France got 1.7 Billion dollar from swiss Bank.
Schweitzer Illustrierte, a Swiss news magazine,published on 19th November 1991, has alleged in an old issue that the Soviet intelligence agency KGB had deposited US $2.2 billion in a Swiss bank account in 1985 in the "minor" account of Rahul Gandhi managed by his mother Sonia Gandhi . Janata Party President Dr Subramanian Swamy, who had secured an order from the Delhi High Court to the CBI to investigate alleged receipt of slush money by late former Prime Minister Rajiv Gandhi's family, has cited a November 1991 issue of the Swiss magazine in support of his charge.He has further claimed that the payments were authorized by CPSU by a resolution CPSU/CC/No 11228/3 dated 20/12/1985 and the same was also endorsed by the USSR Council of Ministers in Directive No 2633/Rs dated 20/12/1985. He also claimed that these payments had been coming since 1971 as the payments received by Sonia Gandhi's family "have been audited in CPSU/CC resolution No 11187/22 OP dated 10/12/1984.   Reference:– http://swissprivacy.tripod.com/id8.html
Why Government is not taking action on corrupt peoples ? Why CBI is not independently working? well answer is simple ,Government is taking lots of money in the name of party fund and also taking help from those politicians who are involved in
criminal charges.Whole police in India is working under politicians.  According to RBI(Reserve Bank Of India) Rupees 17,18,826 crore notes print in India between  year 2000-2010. Rupees 10 Lakh Crore money incirculation in India. Generally 2-3 % of  GDP money circulation in other countries. But Indian Government has allowed  four Swiss bank  &  Eight Bank of Italy in India.
Sources says that NGO is also engaged in converting black money into white Money.
swiss bank(ubs) revealed 6000 USA people names . In may 2008 Germany bank revealed 28 people names but government is still hiding their names. Even the Supreme court of India asked for names three times. But Government only make deal with 23 countries of Double Taxation.
                                USA got his money, France , Italy , countries like Singapore fought and get their money.India has more than 3.5 crore taxpayers. Black Money can be used by terrorists. Probably they are trying to move money to other countries or will invest in real-estate like in dubai or arab countries.After huge pressure from media & civil society Government has joined FATA (Financial Action Task Force) group only to delay issue.
http://indiatoday.intoday.in/site/Story/126998/LATEST%20HEADLINES/indian-link-to-swiss-money-trail-revealed.html
In the data shared by Ex-Swiss banker Rudolf Elmer, there are at least three companies that go by the name of Annapurna. These accounts have been opened in the New York branch of the Swiss Bank Julius Baer.These accounts are Annapurna Convertible Ltd, account number 420331. Annapurna Leverage Ltd, account number 427039 .Annapurna Convertible USD, account number 431916.Money running into crores of rupees has been stashed away in these accounts.57 million dollars or Rs 259 crore have been stashed away in Annapurna Convertible ltd. 18.6 million dollars or Rs 84 crore are lying in Annapurna Leverage Limited.And 10.3 million dollars or Rs 45 crore are hidden away in the account of Annapurna Convertible.Interestingly, the documents list the same company and same person as managing all the Annapurna accounts.Annapurna Convertible, Annapurna Leverage and Annapurna Convertible USD are all managed by Pius Fisch of Fisch Asset Management.The other name to come out was that of Asad Ali Khan and his wife Zahida, who was a co-account holder.   Headlines Today scoured through the records sent to us by Rudolf Elmer and found out how Asad Ali Khan had siphoned off a huge amount of money to the Julius Baer Bank in Cayman Islands.A company in the name of Unicorp Services was incorporated in Cayman Islands.Its registered address is Post Box 1100, Kirk House, Grand Cayman Island, BWI.According to Elmer's documents, the registration number of the company is 00233755.In the year 1999, Asad Ali Khan and Zahida were present for the dissolution of this company as directors of Unicorp Services in Cayman Islands.Elmer's data also shows that the account was being managed by J.M.I. Gillani.The official address is: Banque Julius Baer, 2 Boulevard du Theatre, Case Postale, CH 1211, Geneva 11, Switzerland.
Where Black money is being used? Election, Air  travel , Tour, Restaurants, Land, Jewelery.
Who is involved in Black Money? Senior bureaucrats (IAS,IPS officers), Ministers of Export-Import,Comerce, Chief Ministers, Top Industrialists , Horse Trader, Liquor Trader.
4000 kg gold sold in year 2010 in India.
144 nations signed UNCAC (United Nation Convention Against Corruption) but India is not signing because Indian Government is engaged in corruption. UNCAC Opened for signature from 9 December 2003 by the UN General Assembly & last date was  14 December 2005.
Highly placed sources in New Delhi and Mumbai say much of the money held in Swiss banks, and other tax havens like the Bahamas, have been routed into the Indian stock exchanges through Participatory Note (PN) bought in Mauritius through front companies. Since these instruments are not registered to trade in Indian domestic capital markets, the investors' names remain undisclosed. "The route to take out the money is hawala and to bring it back is Participatory Note ," says Hemen Kapadia, one of Mumbai's top stock market analysts. Roughly 50-60 percent of FII investments, aggregating $85 billion till late 2009, were made through the Participatory Note route. And according to Kapadia, this route saw 75 percent traffic in the last few months. A worried market regulator, the Securities and Exchange Board of India (SEBI) is now learnt to have asked several FIIs to furnish details of the Participatory Note issued to their clients, but it has been consistently stonewalled. "They will always win by citing client confidentiality agreements, and I doubt whether SEBI has the necessary legal teeth to probe further," Kapadia points out.
India`s economic debt—http://www.indiabudget.nic.in/es2009-10/chapt2010/tab84.pdf
FII investment in Indian stocks this year touched a record $18.13 billion ( Rs.82,360 crore), according to the SEBI website. In dollar terms the previous high was in 2007 ($17.65 billion) and in rupee terms in 2009. Stock market analysts say FII investment in rupee terms is lower because of appreciation in the Indian currency against the dollar. The Sensex last year gained over 80 percent — a figure it is likely to surpass this year.
Not taking into account the recently concluded Coal India IPO, the FII bids amounted to Rs. 1.20 lakh crore. Some foreign entities that have placed large bids for Coal India through PNs include Citibank ($1 billion), Merrill Lynch ($2 billion) and Deutsche Bank ($3 billion). The Qualified Institutional Buyer (QIB) quota in the Coal India IPO that was oversubscribed 24 times was primarily due to intense FII interest.
In fact, in 2007, when the then National Security Adviser MK Narayanan had spoken of terror funds routinely penetrating and manipulating the markets, he was hinting at PNs. Earlier, the RBI too had come out with a report expressing concern over the illegal traffic. At that time 89 percent of the funds invested by FIIs had come through the PN route, RBI data showed.According to recent estimates, roughly $200 billion — four times the external debt of Pakistan — is stashed away in Swiss banks and is now being withdrawn.
"A major area of vulnerability for us is the high consolidated public-debt to GDP ratio of over 70 percent … (and) consolidated fiscal deficit," says the Governor of Reserve Bank of India (RBI), Mr. Yaga Venugopal Reddy.
According to CIA world fact book, the Current account balance of India is MINUS -37,510,000,000 (minus) while China is the wealthiest country in the world with $ 426,100,000,000 (Plus) . India listed as 182 and China as no.1 . Money inflow in India is currently Rs 7,000 crore.
Total number of registered corruption cases was 64,00,000 in 1989 , now in year 2010 is 1,64,00,000 .
Hasan Ali 6 Billion Dollar swiss Bank account—-
http://timesofindia.indiatimes.com/india/Hasan-Alis-6bn-in-Swiss-accounts-missing/articleshow/7365076.cms
Surely it`s time to Ban 1000 rupee note—-
http://www.governancenow.com/news/regular-story/check-corruption-ban-rs-1000-note
Sources say that NGO is the main source of Black Money in India.
http://www.hindustantimes.com/833-NGOs-blacklisted-for-misappropriation-of-funds/H1-Article1-488589.aspx
The GFI report says, "From 1948 through 2008, India lost a total of $213 billion in illicit financial flows (or illegal capital flight). These illicit financial flows were generally the product of corruption, bribery and kickbacks, and criminal activities." The total of $213 billion is a misleading figure because "the present value of India's illicit financial flows is at least $462 billion," the GFI report explains, adding, "This is based on the short-term US Treasury bill rate as a proxy for the rate of return on assets." The GFI (Global Financial Integrity) report points out that the "total capital flight represents approximately 16.6 percent of India's GDP as of year-end 2008"; that "illicit financial flows out of India grew at 11.5 per cent per year"; and, that "India lost $16 billion per year between 2002-2006".The present value of illicit assets held abroad ($462 billion) "accounts for approximately 72 per cent of India's underground economy — which has been estimated to account for 50 per cent of India's GDP ($640 billion at the end of 2008)". Just above a quarter of illicit assets are held domestically.The fact that deposits in tax havens have increased from 36.4 per cent of illicit financial flows in 1995 to 54.2 per cent in 2009 tells its own story.
Well if Swiss Bank cann`t give information to India then why Indian Government is not stopping money that they are coming from outside India. But how can a corrupt system do?
We need to start a movement to pressurize the government to do so !! this is perhaps the only way, and a golden opportunity, to expose the high and mighty and weed out corruption !!
Is India poor, who says? Ask Swiss banks With personal account deposit bank of $1500 billion in foreign reserve which have been misappropriated, an amount 13 times larger than the country's foreign debt, one needs to rethink if India is a poor  country?.
http://myeconomist.wordpress.com/indias-black-money-in-swiss-bank/

Indian black money

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In India, Black money refers to funds earned on the black market, on which income and other taxes has not been paid. The total amount of black money deposited in foreign banks by Indians is unknown. Some reports claim a total exceeding US$1.4 trillion are stashed in Switzerland.^[1] Other reports, including those reported by Swiss Bankers Association and the Government of Switzerland, claim that these reports are false and fabricated, and the total amount held in all Swiss banks by citizens of India is about US$2 billion.^[2][3]

In February 2012, the director of the Central Bureau of Investigation said that Indians have $500 billion of illegal funds in foreign tax havens, more than any other country.^[4][5] In March 2012, the Government of India clarified in its parliament that the CBI Director's statement on $500 billion of illegal money was an estimate based on a statement made to India's Supreme Court in July 2011.^[6]

Contents 1 Black money in Swiss banks 2 Court cases 2.1 Supreme Court on black money 2.2 Hasan Ali case 3 Public protests and government's response 3.1 MC Joshi committee on black money 3.2 Tax Information Exchange Agreements 4 Proposals to prevent Indian black money 4.1 Reducing disincentives against voluntary compliance 4.2 Economic liberalization 4.3 Reforms in vulnerable sectors of the economy 4.4 Creating effective credible deterrence 4.5 Supportive measures 4.6 Amnesty 4.7 International enforcement 5 Global perspective 6 See also 7 References

Black money in Swiss banks

Allegations of over $1.4 trillion black money deposits in Switzerland by citizens of India have been widespread.^[7]Above image shows a political rally on black money. However, authorities from Switzerland later declared these reports as fabrication.^[8] Citizens of India, reports the central bank of Switzerland, hold about US$2 billion which is less than 0.13% of total deposits in Switzerland from citizens worldwide.^[9]

In early 2011, several reports in Indian media alleged Swiss Bankers Association officials to have said that the largest depositors of illegal foreign money in Switzerland are Indian.^[1][7] These allegations were later denied by Swiss Bankers Association as well as the central bank of Switzerland that tracks total deposits held in Switzerland by Swiss and non-Swiss citizens, and by wealth managers as fudiciaries of non-Swiss citizens.^[2][8][10]

James Nason of Swiss Bankers Association in an interview about alleged black money from India, suggests "The (black money) figures were rapidly picked up in the Indian media and in Indian opposition circles, and circulated as gospel truth. However, this story was a complete fabrication. The Swiss Bankers Association never said or published such a report. Anyone claiming to have such figures (for India) should be forced to identify their source and explain the methodology used to produce them."^[11][8]

In August 2010, the government revised the Double Taxation Avoidance Agreement to provide means for investigations of black money in Swiss banks. This revision, expected to become active by January 2012, will allow the government to make inquiries of Swiss banks in cases where they have specific information about possible black money being stored in Switzerland.^[12]

In 2011, the Indian government received the names of 782 Indians who had accounts with HSBC. As of December, 2011, the Finance Ministry has refused to reveal the names, for privacy reasons, though they did confirm that no current Members of Parliament are on the list. In response to demands from the Bharatiya Janata Party (BJP) opposition party for the release of the information, the government announced on 15 December that, while it would not publish the names, it would publish a white paper about the HSBC information.^[13]

According to White Paper on Black Money in India report, published in May 2012, Swiss National Bank estimates that the total amount of deposits in all Swiss banks, at the end of 2010, by citizens of India were CHF 1.95 billion (INR 9,295 crore, US$ 2.1 billion). The Swiss Ministry of External Affairs has confirmed these figures upon request for information by the Indian Ministry of External Affairs. This amount is about 700 fold less than the alleged $1.4 trillion in some media reports.^[2]

In February 2012, Central Bureau of Investigation (CBI) director A P Singh speaking at the inauguration of first Interpol global programme on anti-corruption and asset recovery said: "It is estimated that around 500 billion dollars of illegal money belonging to Indians is deposited in tax havens abroad. Largest depositors in Swiss Banks are also reported to be Indians". In a hint at scams involving ministers, Singh said: "I am prompted to recall a famous verse from ancient Indian scriptures, which says – यथा राजा तथा प्रजा. In other words, if the King is immoral so would be his subjects"^[4][14] The CBI Director later clarified in India's parliament that the $500 billion of illegal money was an estimate based on a statement made to India's Supreme Court in July 2011.^[6]

After formal inquiries and tallying data provided by banking officials outside India, the Government of India claimed in May 2012 that the deposits of Indians in Swiss banks constitute only 0.13 per cent of the total bank deposits of citizens of all countries. Further, the share of Indians in the total bank deposits of citizens of all countries in Swiss banks has reduced from 0.29 per cent in 2006 to 0.13 per cent in 2010.^[2]

The Ministry of Finance through the Central Board of Direct Taxes released a White Paper on Black Money giving the Income Tax Department increased powers.^[9]

Court cases

Supreme Court on black money

Noted jurist and former law minister Ram Jethmalani along with many other well known citizens filed a Writ Petition (Civil) No. 176 of 2009 in the Supreme Court of India seeking the court's directions to help bring back black money stashed in tax havens abroad and initiate efforts to strengthen the governance framework to prevent further creation of black money.^[15]

In January 2011, the (SC) asked why the names of those who have stashed money in the Liechtenstein Bank have not been disclosed.^[16] The court argued that the government should be more forthcoming in releasing all available information on what it called a "mind-boggling" amount of money that is believed to be held illegally in foreign banks.^[17]

The SC on 4 July 2011, ordered the appointment of a Special Investigating Team (SIT) headed by former SC judge BP Jeevan Reddy to act as a watch dog and monitor investigations dealing with the black money. This body would report to the SC directly and no other agency will be involved in this. The two judge bench observed that the failure of the government to control the phenomenon of black money is an indication of weakness and softness of the government.^[18]

The issue of unaccounted monies held by nationals, and other legal entities, in foreign banks, is of primordial importance to the welfare of the citizens. The quantum of such monies may be rough indicators of the weakness of the State, in terms of both crime prevention, and also of tax collection. Depending on the volume of such monies, and the number of incidents through which such monies are generated and secreted away, it may very well reveal the degree of "softness of the State."

— Justice B Sudershan Reddy and Justice S S Nijjar, Supreme Court of India, Source: ^[15]

The government subsequently challenged this order through Interlocutory Application No. 8 of 2011. The bench (consisting of Justice Altamas Kabir in place of Justice B Sudershan Reddy, since Justice Reddy retired) on September 23, 2011 pronounced a split verdict on whether government plea is maintainable. Justice Kabir said that the plea is maintainable while Justice Nijjar said it is not. Due to this split verdict, the matter will be referred to a third judge.^[19][20]

Hasan Ali case

Hasan Ali Khan was arrested by Enforcement Directorate and the Income Tax Department on charges of stashing over 36,000 crore in foreign banks.^[21] ED lawyers said Khan had financed international arms dealer Adnan Khashoggi on several occasions.^[22]

However, media sources claimed this case is becoming yet another perfect instance of how investigative agencies like Income Tax Department go soft on high-profile offenders.^{[23][24][25][26]} Ali's premises were raided by ED as far back as 2007. According several news reports, the probe against him has proceeded at an extremely slow pace and seems to have hit a dead end.^{[24][27][28][29][30][31]}

India Today claimed that it had verified a letter confirming the $8 billion in black money was in a Swiss bank UBS account, and the government of India too has verified this with UBS.^[32]

The Swiss bank UBS has denied Indian media reports alleging that it maintained a business relationship with or had any assets or accounts for Hasan Ali Khan accused in the US$ 8 billion black money case. Upon formal request by Indian and Swiss government authorities, the bank announced that the documentation supposedly corroborating such allegations were forged, and numerous media reports claiming US$ 8 billion in stashed black money were false.^[33][34] India Today, in a later article, wrote, "Hasan Ali Khan stands accused of massive tax evasion and stashing money in secret bank accounts abroad. But the problem is that the law enforcement agencies have precious little evidence to back their claims. For one, UBS Zurich has already denied having any dealings with Khan."^[35]

Public protests and government's response

Further information: 2011 Indian anti-corruption movement and Corruption in India

In May 2012, the Government of India published a white paper on black money. It disclosed India's effort at addressing black money and guidelines to prevent black money in the future.^[2]

India has following institutions already preventing, finding and investigating underground economy and black money.^[2]

Central Board of Direct Taxes: is a statutory authority functioning across India under the Central Board of Revenue Act of 1963. This organization has Investigation Wings, spread all across India, which are headed by the Director General of Income Tax (Investigation) to find and stop black money. The Director General of Income Tax (International Taxation) is in charge of taxation issues arising from cross-border transactions and transfer pricing. This organization has been in operation for nearly 50 years, is primarily responsible for combating the menace of black money, has offices in more than 740 buildings spread over 510 cities and towns across India and has over 55,000 employees.

Enforcement Directorate: was established in 1956. It administers the provisions of the Foreign Exchange Regulation Act of 1973 (FERA), later updated to Foreign Exchange Management Act of 1999 (FEMA). It is entrusted with the investigation and prosecution of money-laundering offences, confiscation of the proceeds of such crime, matters related to foreign exchange market and international hawala transactions. This India-wide directorate, with focus on major financial centers in India, has 39 offices and 2000 employees.

Financial Intelligence Unit: has been operating at a separate investigative entity since 2004. This government organization for receiving, processing, analysing, and disseminating information relating to suspect financial transactions. It shares this information with other ministries, enforcement and financial investigative agencies of state and central government of India. Every month, it routinely examines about 700,000 investigative reports and over 1,000 suspect financial transaction trails to help identify and stop black money and money laundering.

Central Board of Excise and Customs and Directorate of Revenue Intelligence: is the apex intelligence organization responsible for detecting cases of evasion of central excise and service tax. The Directorate develops intelligence, especially in new areas of tax evasion through its intelligence network across the country and disseminates information across Indian government organizations by issuing Modus Operandi Circulars and Alert Circulars to apprise field formations of the latest trends in tax evasion. It routinely organizes enforcement operations to unearth evasion of duty and taxes. The Directorate of Revenue Intelligence functions under the CBEC. It is entrusted with the responsibility of collection of data and information and its analysis, collation, interpretation and dissemination on matters relating to violations of taxation and customs law. The organization has thousands of employees and is divided into seven zones all over India. It maintains close liaison with the World Customs Organisation, Brussels, the Regional Intelligence Liaison Office at Tokyo, INTERPOL, and foreign customs administrations.

Central Economic Intelligence Bureau: functions under India's Ministry of Finance. It is responsible for coordination, intelligence sharing, and investigations at national as well as regional levels amongst various law enforcement agencies to prevent financial crimes, generation and parking of black money and illegal transfers. This organization maintains constant interaction with its Customs Overseas Investigation Network (COIN) offices to share intelligence and information on suspected international financial transactions. The COIN offices gather evidence through diplomatic channels from the foreign custom offices and other foreign establishments to establish cases of mis-declaration to help identify and stop tax evasion and money laundering.

In addition to the above primary organizations, India has 10 additional separate departments operating under the central government of India - such as National Investigation Agency and National Crimes Record Bureau - to help locate, investigate and prosecute black money cases. Discovery and enforcement is also assisted by India's Central Bureau of Investigation and state police.^[2]

In addition to direct efforts, the Indian central government coordinates its efforts with state governments with dedicated departments to monitor and stop corporate frauds, bank frauds, frauds by non-banking financial companies, sales tax frauds and income tax-related frauds.

MC Joshi committee on black money

After a series of ongoing demonstrations and protests across India, the government appointed a high-level committee headed by MC Joshi (the then Chairman, CBDT^[36]) in June 2011 to study the generation and curbing of black money. The committee finalised its draft report on 30 January 2012. Its key observation and recommendations were:^[37]

1. The two major national parties (an apparent reference to Indian National Congress, BJP) claim to have incomes of merely 500 crore (US$94.5 million) and 200 crore (US$37.8 million). But this isn't "even a fraction" of their expenses. These parties spend between 10,000 crore (US$1.89 billion) and 15,000 crore (US$2.84 billion) annually on election expenses alone.^[37]
2. Change maximum punishment under Prevention of Corruption Act from the present 3, 5 and 7 years to 2, 7 and 10 years rigorous imprisonment and also changes in the years of punishment in the Income Tax Act.^[37]
3. Taxation is a highly specialised subject. Based on domain knowledge, set up all-India judicial service and a National Tax Tribunal.^[37]
4. Just as the USA Patriot Act under which global financial transactions above a threshold limit (by or with Americans) get reported to law enforcement agencies, India should insist on entities operating in India to report all global financial transactions above a threshold limit.^[37]
5. Consider introducing an amnesty scheme with reduced penalties and immunity from prosecution to the people who bring back black money from abroad.^[37]

Tax Information Exchange Agreements

To curb black money, India has signed TIEA with 10 countries - Bahamas, Bermuda, the British Virgin Islands, the Isle of Man, the Cayman Islands, Jersey, Monaco, St. Kitts and Nevis, Argentina and the Marshall Islands - where money is believed to have been stashed away. India and Switzerland, claims a report, have agreed to allow India to routinely obtain banking information about Indians in Switzerland from April 1, 2011.^[38]

Proposals to prevent Indian black money

History

Even in colonial India, numerous committees and efforts were initiated to identify and stop underground economy and black money with the goal of increasing the tax collection by the British Crown government. For example, in 1936 Ayers Committee investigated black money from the Indian colony. It suggested major amendments to protect and encourage the honest taxpayer and effectively deal with fraudulent evasion.^[39]

Current Proposals

In its white paper on black money, India has made the following proposals to tackle its underground economy and black money.^[2]

Reducing disincentives against voluntary compliance

Excessive tax rates increase black money and tax evasion. When tax rates approach 100 per cent, tax revenues approach zero, because higher is the incentive for tax evasion and greater the propensity to generate black money. The report finds that punitive taxes create an economic environment where economic agents are not left with any incentive to produce.

Another cause of black money, the report finds is the high transaction costs associated with compliance with the law. Opaque and complicated regulations are other major disincentive that hinders compliance and pushes people towards underground economy and creation of black money. Compliance burden includes excessive need for compliance time, as well as excessive resources to comply.

Lower taxes and simpler compliance process reduces black money, suggests the white paper.^[2]

Economic liberalization

The report suggests that non-tariff barriers to economic activity such as permits and licenses, long delays in getting approvals from government agencies are an incentive to proceed with underground economy and hide black money. Where one cannot get a permit to undertake a legitimate activity, the transaction costs approach infinity, and create insurmountable incentives for unreported and unaccounted activities that will inevitably generate black money. The successive waves of economic liberalization in India since 1990s have encouraged compliance and taxes collected by the government of India have dramatically increased over this period. The process of economic liberalization must be relentlessly continued to further remove underground economy and black money, suggests the report.^[2]

Reforms in vulnerable sectors of the economy

Certain vulnerable sectors of Indian economy are more prone to underground economy and black money than others. These sectors need systematic reforms. As example, the report offers gold trading, which was one of the major sources of black money generation and even crime prior to the reforms induced in that sector. While gold inflows into India have remained high after reforms, gold smuggling is no longer the menace as it used to be. Similar effective reforms of other vulnerable sectors like real estate, the report suggests can yield a significant dividend in the form of reducing generation of black money in the long term.

The real estate sector in India constitutes about 11 per cent of its GDP. Investment in property is a common means of parking unaccounted money and a large number of transactions in real estate are not reported or are under-reported. This is mainly on account of very high levels of property transaction taxes, commonly in the form of stamp duty. High transaction taxes in property are one of the biggest impediments to the development of an efficient property market. Real estate transactions also involve complicated compliance and high transactions costs in terms of search, advertising, commissions, registration, and contingent costs related to title disputes and litigation. People of India find it easier to deal with real estate transactions and opaque paperwork by paying bribes and through cash payments and under-declaration of value. Unless the real estate transaction process and tax structure is simplified, the report suggests this source of black money will be difficult to prevent. Old and complicated laws such as the Urban Land Ceiling Regulation Act and Rent Control Act need to be repealed, property value limits and high tax rates eliminated, while Property Title Certification system dramatically simplified.^[2]

Other sectors of Indian economy needing reform, as identified by the report, include equity trading market, mining permits, bullion and non profit organizations.

Creating effective credible deterrence

Effective and credible deterrence is necessary in combination with reforms, transparency, simple processes, elimination of bureaucracy and discretionary regulations. Credible deterrence needs to be cost effective, claims the report.^[2] Such deterrence to black money can be achieved by information technology (integration of databases), integration of systems and compliance departments of the Indian government, direct tax administration, adding data mining capabilities, and improving prosecution processes.

Supportive measures

Along with deterrence, the report^[2] suggests public awareness initiatives must be launched. Public support for reforms and compliance are necessary for long term solution to black money. In addition, financial auditors of companies have to be made more accountable for distortions and lapses. The report suggests Whistleblower laws must be strengthened to encourage reporting and tax recovery.

Amnesty

Amnesty programs have been proposed to encourage voluntary disclosure by tax evaders. These voluntary schemes have been criticized on the grounds that they provide a premium on dishonesty and are unfair to honest taxpayers, as well as for their failure to achieve the objective of unearthing undisclosed money. The report^[2] suggests that such amnesty programs cannot be an effective and lasting solution, or one that is routine.

International enforcement

India has Double Tax Avoidance Agreements with 82 nations, including all popular tax haven countries. Of these, India has expanded agreements with 30 countries which requires mutual effort to collect taxes on behalf of each other, if a citizen attempts to hide black money in the other country. The report^[2] suggests that the Agreements be expanded to other countries as well to help with enforcement.

Global perspective

Black money is not a unique Indian phenomenon. It is observed all over the world, sometimes in equivalent local language such as le travail au noir, schwarzarbeit or svarta sektor, and sometimes by different names such as: underground money or economy, grey, cash, dual, covert, hidden, illegal, informal, irregular, marginal, parallel, moonlight, second, shadow, bootleg, subterranean, twilight, under-the-table, unobserved, unofficial, unrecorded, or unreported.^[40][41] Other than Japan and Switzerland where the black money economy has been estimated to be less than 5%, scholars report that the black money in developed economies ranges between 10 to 25% of each nation's GDP. In case of certain economies such as Greece, the estimates for black money range between 25 to 55%. These estimates suggest an annual underground economy in the range of US$100 billion to over US$1 trillion per developed country. The ratio of undeclared and declared economic transactions are higher in nations or commodities with high taxes (tobacco), excessive regulations or opaque bureaucracy.^{[40][42][43][44][45]}

Schneider estimates, using the dynamic multiple-indicators multiple-causes method and by currency demand method, that the size of India's black money economy is between 23 to 26%, compared to an Asia-wide average of 28 to 30%, to an Africa-wide average to 41 to 44%, and to a Latin America-wide average of 41 to 44% of respective gross domestic products. According to this study, the average size of the shadow economy (as a percent of "official" GDP) in 96 developing countries is 38.7%.^[46]

See also

• Ramlila ground protests
• International asset recovery
• Corruption in India
• 2012 Indian anti-corruption movement
• 2011 Indian anti-corruption movement
• United Nations Convention against Corruption

References

1. ^ ^{a b} Nanjappa, Vicky (31 March 2009). "Swiss black money can take India to the top". Rediff.com. Retrieved 23 May 2011.
2. ^ ^{a b c d e f g h i j k l m n o} "White Paper on Black Money". Ministry of Finance, Government of India. 2012.
3. ^ "Banking secrecy spices up Indian elections". SWISSINFO - A member of Swiss Broadcasting Corporation. 14 May 2009.
4. ^ ^{a b} Black money: Indians have stashed over $500bn in banks abroad, says CBI
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[hide] v t e Corruption in India
Corruption in various sectors	Corruption in Indian politics
Notable corruption scandals and accused	List of scandals in India
Notable organizations against corruption	India Against Corruption Save Your Voice
Notable anti-corruption activists	Swami Ramdev Anna Hazare Subramanian Swamy Arvind Kejriwal Kiran Bedi
Notable anti-corruption protests, by year	2012 Indian anti-corruption movement 2011 Indian anti-corruption movement
Proposed anti-corruption legislation	Lokpal Lokayukta Whistleblower protection in India
Existing anti-corruption laws and enforcement	Prevention of Corruption Act, 1988 Right to Information Act Right to Public Services legislation
International anti-corruption instruments and efforts	United Nations Convention against Corruption International asset recovery
Other	Indian black money Corruption Perceptions Index License Raj Mafia Raj