Supreme Court directs action on black money
The Supreme Court has re-invigorated India’s campaign to bring back black money parked abroad by re-constituting the Special Investigation Team tasked with monitoring the Union Government's efforts in this regard. The apex court had ordered the establishment of the SIT on July 4, 2011, in response to a public interest litigation moved by Mr Ram Jethmalani. The veteran lawyer had asked the Centre to reveal the details of an alleged Rs 90 lakh crore of black money stashed away in foreign banks by Indians, and had demanded that an SIT be set up to monitor the Government’s probe. The panel, however, was never formalised. Justice BP Jeevan Reddy who was to chair the SIT backed out later due to personal reasons and the Government used that as a convenient excuse to dilly-dally over the panel's notification. On Thursday, the Supreme Court took on record Justice Reddy's inability to join the panel, appointed Justice MB Shah as chairman instead (he will be assisted by Justice Arijit Pasayat as vice chairman) and, importantly, set a three-week deadline for the Government to notify the panel. By that time, a new regime is expected to be in charge, but irrespective of the political changes at the helm, it is imperative that the Centre stick to the apex court's deadline and notify the SIT. For more than two years, the UPA regime has prevented the panel from starting work as it has never been keen on the Supreme Court overseeing its investigations. One must remember that in 2011, the Government had formally objected to the formation of the SIT, only to be castigated by the apex court for failing to bring back unaccounted wealth. Nevertheless, now that the Government has forcibly been brought on track, it must stay the course.
The SIT has a wide mandate that covers all black money cases and includes offering a larger view on how to improve the country's fight against black money. But its first area of focus will be on the 26 Indian and Indian-origin individuals who have deposits in liechtenstein's lGT bank. The names of these individuals, who manage 12 trusts or entities between them, were given to India by Germany in 2009 under the Indo-German Double Taxation Avoidance Agreement. In the five years since then, the Government has investigated all individuals and found no evidence of wrongdoing against eight of them. Of the remaining 18, one has already died and the Government has begun prosecution against the remaining 17. The SIT will, of course, be monitoring these proceedings closely and it is hoped that the Government will cooperate with it.
Additionally, the SIT will also be looking into the eight individuals who have been given a clean chit by the Centre. Up until now, their names had been kept under wraps but on Thursday, the Supreme Court ordered the Centre to reveal their identities to the litigant, Mr Jethmalani. It also set a three-day deadline for the process. The Government may be expected to raise a stinker over this issue as it could be in violation of India's tax agreement with Germany, which says that the information can only be shared with the courts and investigating agencies. However, the apex court is of the opinion that since the investigation is now over, the names can be made public.