News Can’t reveal black money details, Centre tells Supreme Court

Discussion in 'News & happenings' started by RajaPraveen, Oct 17, 2014.

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  1. RajaPraveen

    RajaPraveen Black Jeebus Staff Member

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    Can’t reveal black money details, Centre tells Supreme Court
    Arun Jaitley_0_0_0_0_0_0_0_0_0_0.jpg

    The Centre told the Supreme Court on Friday that it is unable to disclose all information on black money received from foreign countries with which India has a double taxation avoidance agreement (DTAA) because doing so would violate confidentiality terms in those pacts.

    The Centre said foreign countries had objected to disclosing such information and if such details were revealed then no other country would sign similar agreements with India. Germany is one such country which has raised objections to providing details of account holders in LGT Bank, Liechtenstein.

    Appearing before a bench headed by Chief Justice HL Dattu, attorney general Mukul Rohatgi mentioned the issue and pleaded that the court clarify urgently whether it can go ahead and sign DTAAs with other countries keeping the confidentiality clause.

    In taking such a stand, the NDA government appears to be toeing the previous Congress-led government’s line. The BJP had vowed during the Lok Sabha election campaign to bring back black money stashed abroad.

    Viewed as going hand in hand with corruption, black money has been a lightning rod for widespread public protests over the last couple of years.

    On Friday, senior advocate Ram Jethmalani strongly objected to the stand taken by the Centre and said that the matter should not be heard at all.

    "Matter should not be entertained even for a day. Such application should have been made by the culprits and not by the government," Jethmalani said, adding that Centre is trying to protect the people who have stashed black money in foreign banks.

    Jethmalani said that he has written a letter to Prime Minister Narendra Modi on this issue and his response is awaited.

    To meet a deadline set by the Supreme Court for the previous government, Prime Minister Narendra Modi’s cabinet — on the new government’s first day in office in May — set up a high-powered Special Investigation Team (SIT) to look into the issue of black money and slush funds.

    The government has given the SIT, headed by retired Supreme Court judge MB Shah, a sweeping mandate to crack down on India’s infamous and bustling parallel economy.

    Black money arises mainly from incomes not disclosed to the government usually to avoid taxation and sometimes because of its criminal links.
    The SC had directed the government to constitute a SIT to investigate individuals whose names were disclosed by Germany for having accounts in LGT Bank in Liechtenstein — a European principality known for its banking secrecy laws.

    The government has given the SIT powers to investigate the operations of Indian individuals and “entities” whose money is found stashed in foreign banks. It will file periodic status reports to the Supreme Court.

    The income tax department has given to the Enforcement Directorate (ED) — the agency that tracks overseas money laundering deals — names of 17 individuals who had held accounts in Liechtenstein’s LGT Bank.


    Can’t reveal black money details, Centre tells Supreme Court - Hindustan Times

     
  2. JD666

    JD666 RAID Leader Staff Member

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    So it's being stalled because?
     
  3. BANHAMMER

    BANHAMMER Teh Almighty BanHammer Staff Member

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    Congress made a treaty with Germany regarding something. It is a sovereign level issue. If we violate the treaty it will hamper FDI etc.
    If there is a case in law of court against an individual saying he/she has money in swiss bank, then CBI can ask centre govt to provide data on individual.
    It is pretty complicated situation.

    Here this is from Congress government,

    Black money: Govt refuses to disclose names - Hindustan Times
     
  4. RajaPraveen

    RajaPraveen Black Jeebus Staff Member

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    Finance Minister Arun Jaitley also said that the names cannot be revealed due to a confidentiality clause in a double taxation avoidance agreement India had signed with Germany in 1995.

    Has nothing to do with FDI AFAIK, the senior bjp folks are only aware of this agreement only now? i don't think so, if they had already known about this treaty then all of the promises before election to reveal names and bring the black money back is starting to look like election time false marketing.





    He also recalled Modi's tweets during the campaign for Lok Sabha polls in which he had taken digs at the Congress and said the National Democratic Alliance will bring every paisa stashed abroad.Singhvi also called upon activists Anna Hazare, Baba Ramdev and Kiran Bedi -- all of whom were part of the anti-corruption agitation against the UPA government in the past -- to launch a similar agitation against the BJP-led government.


    However, senior counsel Jethmalani, the petitioner in the plea seeking steps to bring back the black money stashed away to tax havens, assailed the government position saying that it could be position of people involved in taking ill-gotten money to tax havens and not that of the government.




    In its application, the Centre said that the foreign countries have objected to disclosing such information and if such details are revealed then no other country would sign such an agreement with India.

    Rohatgi said the revelation of names of Liechtenstein Bank account holders has been seriously objected to by the German government. He also said the government is on the verge of signing important double taxation avoidance treaties with many countries, including the US in December.

    "If names of those not prosecuted are given out, then it will dry up the foreign government sources which provide the information about Indians stashing illegal money abroad," Rohatagi is reported to have told the apex court, which will hear the Centre's application on October 28.

    Responding to the Centre's stand, senior lawyer and petitioner in the case, Ram Jethmalani, accused the Narendra Modi government of shielding the corporates accused of laundering black money abroad.

    "Such an application could only be made by crooks who have illegally parked their ill-gotten money abroad and not by a democratically elected government," Jethmalani, whose plea the apex court had constituted Special Investigating Team on black money, said.

    Jethmalani said that he has written a letter to Prime Minister Narendra Modi on this issue and his response is awaited.



    Read more at: Black money: Modi government says it can't disclose names : North, News - India Today
     
  5. JD666

    JD666 RAID Leader Staff Member

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    Definitely, you don't make claims without your homework. And if such a treaty was in place, it would've been red flagged all over their plans.

    Q2 - Were we not getting the sources from Switzerland? and not Germany?
     
  6. BANHAMMER

    BANHAMMER Teh Almighty BanHammer Staff Member

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    here what Jaitley said further

     

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