Notice to Centre on petition on black money

The Supreme Court on Monday issued notice to the Centre on the petition filed by former Union Law Minister Ram Jethmalani and others seeking vital documents from the Centre on black money stashed in foreign banks.

A Bench of Chief Justice K.G. Balakrishnan, Justices P. Sathasivam and B.S. Chauhan issued notice after hearing senior counsel Anil Divan, who said the Centre was withholding vital documents.

The court was hearing a PIL petition filed by Mr. Jethmalani and others alleging inaction on the part of the Centre in bringing back the black money from foreign banks. They had sought 21 documents and letters, including the Indian government’s communication with German authorities, UBS AG Switzerland and LGT Bank, Liechtenstein, a tax haven. They had also sought certain documents relating to the case registered against Pune-based businessman Hasan Ali Khan against whom the Enforcement Directorate has lodged a complaint for violating the Foreign Exchange Management Act (FEMA).

Solicitor-General Gopal Subramaniam denied that the Centre was not supplying the documents or that it was not taking steps to recover black money from foreign banks.

Mr. Divan referred to a speech made by Prime Minister Manmohan Singh on August 25 while inaugurating the conference organised by the CBI that high level corruption should be pursued aggressively and said the Centre was not implementing what the Prime Minister had said.

He submitted that “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 [under the FEMA] and he is not being custodially interrogated.”

Mr. Divan alleged that the Swiss authorities were not being furnished proper documentation and that the Swiss authorities had alleged that forged documents were given to it. He said they were willing to cooperate if proper documentation showing dual criminality was sent to them.

“No laxity in probe”

Mr. Subramaniam filed a status report in a sealed cover relating to the investigations conducted in respect of Hasan Ali Khan and said that Letter Rogatories were issued to various countries in connection with the probe. He denied any laxity in the investigation.

He said the government would be holding a meeting with the Swiss authorities and assured the court that periodic status reports would be filed.