The Special Investigation Team (SIT) on black money on Wednesday hailed Finance Minister Arun Jaitley’s budget announcement to limit cash transactions to Rs. 3 lakh, but said that its other recommendation of capping cash holding of an individual at Rs. 15 lakh would have been a “far better” measure to check corruption.
The SIT made these two specific recommendations in its fifth report submitted to the Supreme Court in July last.
SIT chairman Justice (retd.) M.B. Shah said that to check stashed away funds, some “stern steps” were needed to be taken, but the government also had to go by the advice of economists and others and not theirs alone.
“It [ban of cash transactions over Rs. 3 lakh] was necessary...it is a good decision. Such a thing is prevalent in a number of countries and we have said that in our report submitted earlier. We had suggested this an year back and after a long time it has been accepted...it is good. But, our further suggestion of not permitting a person to hold more than Rs. 15 lakh in hand or in their house is something that has not been accepted. If it would have been accepted, it would have been far better [step to combat black money],” Justice Shah told PTI.
The cap on cash holding “would have controlled corruption at least, as corruption is in lakhs or crores of rupees,” he said.
When asked if the he was “not happy” as the SIT’s cash holding recommendation did not find favour with the government, he said there were many concerns that the government had to keep in mind. Strict steps, however, were required to check the menace of illicit or unaccounted monies.
“It is not a question of being not happy, because suggestions are made by us and some may be accepted and some may not be accepted. It is their [the government’s] call. They are also advised by economists and also they are concerned with the politics of it...there is no question of my happiness...if you want to control black money then you will have have to take some stern steps. There is no alternative,” he said.
The panel has been continuously suggesting anti-black money measures to the government and it would keep doing that.
When asked about demonetisation and its effects on curbing black money, the SIT chief called it a “good thing.”
“It is a very good thing as once [the currency is] demonetised, the persons will not be able to hold unaccounted cash and that has its own effect. But some people do mischief in [illegally] converting it...it has come to the notice of the government as the Finance Minister said in his Budget speech,” he said.
The SIT was notified by the Central government in May 2014 on the directions of the apex court.
Justice (retd.) Arijit Pasayat is its vice chairman with 11 probe and regulatory agencies working under it.