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LATEST NEWS UPDATES | Supreme Court alarm over ‘plunder of the nation' by J Venkatesan

Supreme Court alarm over ‘plunder of the nation' by J Venkatesan

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published Published on Jan 19, 2011   modified Modified on Jan 19, 2011

Describing black money stashed away abroad by Indians as “pure and simple theft of national money”, the Supreme Court on Wednesday questioned the Centre's approach to tackling this menace and retrieving the huge amount kept in foreign banks.

“Mind-boggling crime”

When Solicitor-General Gopal Subramaniam furnished in a sealed cover a list of 26 names who had accounts with Liechtenstein Bank, a Bench of Justice B. Sudershan Reddy and Justice S.S. Nijjar was not convinced of the steps taken by the government to get back black money.

Justice Reddy, after perusing the list, told the S-G: “This is all the information you have or you have something more! We are talking about the huge money. It is a plunder of the nation. It is a pure and simple theft of the national money. We are talking about mind-boggling crime. We are not on niceties of various treaties.”

“Something more”

The Bench was hearing a petition filed by former Union Law Minister Ram Jethmalani and others. Appearing for them, senior counsel Anil Divan earlier alleged inaction on the part of the Centre in bringing back black money parked in foreign banks.

Referring to Mr. Divan's submissions quoting former National Security Adviser M. K. Narayanan that the money stashed away in tax havens might have some terror links, Justice Reddy observed: “This is the problem which is worrying us. It is not only about tax evasion, it has something more.”

The S-G said the government was taking all steps to retrieve black money but explained the difficulties in sharing the information. Sharing of information by the countries concerned depended on treaties, otherwise they were not bound to furnish details.

Justice S.S. Nijjar asked the Solicitor-General: “Why are you limiting the matter to the Liechtenstein Bank?”

Pointing out that nothing would stop or preclude the Court from expanding the scope of the writ petition in public interest, he said, “All we want is that you give all information about the money deposited in the foreign banks by Indians. You cannot confine the petition to one bank.”

“Only five documents furnished”

Senior counsel Anil Divan, appearing for petitioners, said they had sought 21 documents and letters, including the government's communication with German authorities, UBS AG Switzerland and LGT Bank, Liechtenstein, a tax haven, but only five documents were furnished.

The petitioners had also sought certain documents in the case registered against Pune-based businessman Hasan Ali Khan against whom the Enforcement Directorate lodged a complaint for violating the Foreign Exchange Management Act to the tune of Rs. 36,000 crore.

Mr. Divan said: “Not a single individual whose name is allegedly given by the German Government has been proceeded against; no vigorous steps are being taken against Hasan Ali Khan and he is not being custodially interrogated.”

The Centre had taken cover under the double-taxation avoidance agreement with the mala fide intention of concealing information from the public, he said, adding that the issue of tax avoidance had no relevance to the source of money.

Mr. Subramaniam will give further reply on January 27.

The Hindu, 20 January, 2011, http://www.thehindu.com/todays-paper/article1104252.ece


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