The Supreme Court on Thursday set a three-week deadline for the Centre to constitute a special investigation team (SIT) headed by former apex court judge MB Shah to take appropriate steps for recovery of black money and monitor prosecutions initiated in this regard by the Centre.With a change of guard expected at the Centre in three weeks, it is likely that the new Government’s first task would be to get the ball rolling on recovery of black money.
A Bench of Justices Hl Dattu, Ranjana P Desai and Madan B lokur gave effect to the order passed by the court on July 4, 2011 on a petition moved by senior lawyer Ram Jethmalani, who alleged that black money to the tune of Rs 90 lakh crore was stashed by Indians in foreign bank accounts.The 2011 order had named former SC judges — Justice BP Jeevan Reddy as SIT Chairman and Justice MB Shah as Vice Chairman, the Bench modified the order on learning about Justice Reddy’s inability to accept the responsibility.
With Justice Shah willing to head the SIT, the Bench directed the Centre to issue a notification appointing him as Chairman within three weeks.He would be assisted by another former SC judge, Justice Arijit Pasayat as Vice Chairman. The SIT would also comprise of Secretary, Department of Revenue, as Chairman, Deputy Governor, Reserve Bank of India, Director (IB), Director, Enforcement Directorate, Director, CBI, Chairman, CBDT, DG, Narcotics Control Bureau, DG, Revenue Intelligence, Director, Financial Intelligence Unit, and Joint Secretary CBDT.
The court further directed the Centre to supply all information and documents relating to the 26 people of Indian origin or nationality having accounts in liechtenstein Bank. This information was given to India in March 2009 by Germany under Double Taxation Agreement Convention (DTAC).Of these, the Centre had revealed only 18 names to Jethmalani although in July 2011, SC ordered forthwith release of all information about 26 people to the petitioner. In 18 cases, prosecution for tax fraud was initiated by the Income Tax department while in eight cases no case of “wrongdoing” was made out.
The Bench on Thursday gave Centre three days to supply entire information about the 26 people received from Germany to the petitioner. By doing so, it overruled Centre’s obligation to Germany under the DTAC to reveal the confidential information only to courts and prosecution agencies for purpose of investigation into tax crimes.