The latest set of revelations from India Against Corruption (IAC) and Arvind Kejriwal turns the spotlight squarely on the important issue of unaccounted money hoarded in banks abroad. Back in July 2011, the French government handed over a compact disc with details of 700 secret bank accounts held by Indians at HSBC Bank in Geneva. Yet for almost a year, the government staved off pressure from the Opposition and civil society to act on the dossier until May this year when the then Finance Minister, Pranab Mukherjee, released a White Paper on black money. The paper revealed that Indian citizens held deposits adding up to Rs 23,373 crore in Swiss banks in 2006. By 2010, this had come down to Rs 9,295 crore, ostensibly because part of the money had come back to India through the hawala route or was simply masquerading as foreign investment in the stock market. While the paper highlights the scale of the problem it still does not address the question of what exactly the dossier contained. Who were these 700 account holders? What were their holdings and how did they acquire that money? Mr. Kejriwal has revealed the identities of three individuals who were part of the list and made claims about a number of others but questions remain. Did the government probe all the names in the list or did it just cherry-pick the most “unconnected” ones to investigate in order to prove it was acting? If it has investigated all the 700 names, what has it discovered?
IAC’s latest exposé also raises important questions about the role of HSBC in allegedly laundering money through what amounts to hawala transactions. The charge that the bank would take cash in rupees for a deposit in dollars in its branch abroad and later reverse the transaction in similar fashion, all without anything on paper, is certainly worrying. This process, which three individuals in the list of 700 apparently admitted to using, clearly falls into a pattern given that HSBC is already under investigation in the U.S., where it is facing a $1.5 billion fine for money-laundering, and in the U.K., where it is being probed for opening offshore bank accounts for dodgy individuals and even well-known personalities. Given this, there is little doubt that the government needs to investigate the role of the bank in India and importantly, tie this in with the specific information received from France. To be sure, not every foreign bank account is illegitimate. But this fact cannot be established unless the government goes into the details of each of those accounts. A Finance Ministry statement on Saturday indicated that relevant agencies are indeed probing the matter. While that is reassuring, it is best if the broad results of this probe — including details of punitive action taken, if any — are made public as soon as possible.
Keywords: India Against Corruption, corruption charges, anti-graft movement, Pranab Mukherjee, HSBC Bank, bank fraud case, money laundering issue, hawala transactions, Arvind Kejriwal
It is really good to see a bunch of people who are really becoming
very alert citizens in this democracy like Arvind Kejrival ,because
after all democracy is a close and vigilant watch of its institutions
by those who are being governed.But unfortunately the very ethos of
democracy lost its ground and the ruling class are becoming so closer
to the idiom "Wolf in Sheep's clothing" and so is its machinery.After
so much noises coming from all around,still the Govt is reluctant to
release the list of "Super-700".I really feel that the common man is
in dire-straits than ever before with his very little knowledge.
I see lot of people blaming the government for no action. I agree with
this to an extent. But I also would like to point out that its
Mr.Pranab Mukherjee then Finance Minister, who is part of the same
government first came out public about this. If they are not going to
take any action they could have simply hidden the matter completely
from the people. And IAC revealing names of people who have banks
accounts will only alert the other account holders to divert their
funds to other locations or come up with suitable cover ups. I believe
this dossier and the following revelations should have been kept
confidential to avoid such a scenario.
It would be better if IAC brings out illegal money in India before attempting on money abroad
Government of the day is in denial mode and putting things under
carpet
if it is going for half hearted attempt and putting half baked fact
through white paper that too in parliament.According to UPA
government if it acted on only three individuals out of seven hundred
it says volumes about its intention.Now question arises if France
government provided dossier it must have provided with good intention
but matter moved forward with snail pace.one thing is quite clear
that haven is not going to fall and if they fall it will fall on UPA
govt.,but the question is which one is more important Govt or Nation
besides which one existing for the purpose of whom certainly nation
has got transcendal position.Existence of nation should be our utmost
priority but UPa is not ready to read graffiti,early it is better for
both nation and govt..Aravind Kejriwal and his team has done
commendable job so far by exposing elite and politically untouchable
because to manage malingency you must opt surgery.
Despite of bundle of information about the money hoarded abroad has been revealed by opposition,there is absolutely no response from the government.It is clearly evident from all that is the persons who were and are close to the government must have been deeply indulging in such kind of activities.The govt is trying to evade the probe on such issues by giving some pretexts.It's the right time to oust this unscrupulous looting government.
To bring back black money stashed in Foreign banks, the Govt will do
nothing. But, we people, start mobilising ourselves against the same,
wonders may happen because unity is the magic wand that would be the
best weapon one could possess to fight against corruption.
It is obvious that the government is luke warm in its investigation agaist these 700 people on this list. Some of them may be politicians and babus and business men whose names it does not want to make public. Therefore, doing nothing is the best option.
BLACK MONEY, whether kept within the country or stashed abroad,
comprises UNDECLARED INCOME on which obviously NO TAX HAS BEEN PAID.
Such an arrangement is NOT ONLY ILLEGAL BUT UNFAIR ON ALL LAW-ABIDING
TAXPAYERS.
THE RULE OF LAW MUST APPLY TO ALL! Indian laws must apply to all
Indians, and all those trading in India / dealing with Indians.
It is the duty of any civilised Govt to ensure that everyone pays
their due share of tax, and in particular as Black Money belongs to
the rich rather than poor people of society, that THE RICH DO NOT GET
AWAY WITHOUT PAYING ANY TAX AT ALL.
Injustice can lead to unrest, which must be avoided. "Those who make
peaceful revolution impossible, make violent revolution inevitable."
John F. Kennedy.
Thank you The Hindu for asserting that IAC / Mr Kejriwal is right to
turn “the spotlight squarely on the important issue of unaccounted
money hoarded in banks abroad.”
It is a sad commentary a paper of the reputation of The Hindu should also join the bandwagon of activists hunting for trophies. Without investigating the merits or otherwise of the accounts held in HSBC Bank it is totally premature to castigate the account holders. If the prevailing banking systems permit maintaining accounts in foreign bank you cannot cry foul and damage reputations of corporate account holders. The way Arvind Kejriwal tries to hog the limelight he will very soon run short of issues and the public would see through his game of crying wolf. Reform is a continuous process and the entire country has to participate in the process. Sadly this paper has joined the ranks of journals wanting to share the limelight for dubious issues.
If one foreign bank is suspected to be courageous enough to dabble in hawala transactions, the common man has every right to suspect every one of the foreign banks to be deeply involved in these hawala transactions. The common man knows that these foreign banks are stuffed with the daughters and sons of elite class (read politicians and the executive viz. IAS officers) and the two parties have reason to play ball, as long as it is possible to line their pockets, individually and as a collective.
The Government is reactive than being pro-active. The entire Government machinery takes a holiday unless a civil activist or the press breaks a story on how the nation is being defrauded.
The mechanisms of stalling any investigation or disclosing information is 'non-cooperation of the foreign government' (Malyasia in the case of Maran, Switzerland in case of all the Swiss a/c holders) and/or the best 'Diplomatic compulsions' (Bofors).
The Government is unwilling to arm twist the foreign Governments and banks to toe the line.
This I think is deliberate, more skeletons belonging to the Government will tumble out of the cupboard, if investigations are taken to their logical conclusion.
It's a pity that there is no single minister or civil servant (in the know) who is truthful to the oath taken by them.
By definition and by inaction the corruption central is the congress
party and the government. Who knows what will happen to the list of
700 hundred the list will probably get altered, or will allow the
friends of congress to divert or reduce the amount by obviously
Halwala route and all will be well. It is pretty obvious Congress is
not serious about corruption or it has some pretty high people in the
list of 700
The Govt. certainly seems unwilling to act on the information that it has about the money stashed away in off shore bank accounts. One is reminded of the Bofors issue which dragged on for decades and it often appeared that the Govt was more interested in allowing Q to get away.
Tax Justice Network has reported that tax havens have USD 20 Trillion in them. This is more than the GDP of US and Japan combined.
If it was indeed,in July 2011, the French government handed over a
compact disc with details of 700 secret bank accounts held by Indians
at HSBC Bank in Geneva and if the then Finance Minister, Pranab
Mukherjee, did not take any action, that speaks volumes for the state
of affairs in India. Crocodile tears are shed for the suffering
humanity, the poor of India and shamelessly their money is looted.
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