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Black money case: Most accounts cleared or closed

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The central government's list of 627 black money accounts may prove to be another damp squib as the account holders got enough time to transfer the money or even close their accounts.

The list submitted before the Supreme Court also includes around 150 account holders, who have already paid fines and clarified other taxation formalities. Thus their accounts can no longer be categorised as black money accounts. Besides, many accounts have been opened in the name of trusts abroad and thus the money could never be traced back to the original owners in India.

In one such example from the leaked HSBC list of more than 700 alleged black money accounts, a trust called Arpee Gems had account in the bank's Singapore branch. The account contained close to $100 million and was closed immediately after the names were made public.

According to sources, the account was traced to the proprietors of a leading hospital in Bandra, Mumbai. This family was already under scanner of tax authorities for account in a Liechenstein Bank. However, the investigators are yet to file any charges or move ahead in this case due to the lack of legal evidence.

Resident Indians or Indian Companies holding such accounts in HSBC's Global South Asia Diaspora are called 'beneficial owners'or 'settlers'. The minimum amount required to open such accounts is $2 million, though it was brought down to $1 million, say sources.

The bank over the years has maintained that they do not comment on government inquiries or accounts of customers/individuals. "HSBC does not condone tax evasion. Individuals are responsible for their own tax affairs. HSBC seeks to comply with the law in all jurisdictions in which it operates."

These offshore accounts are mostly opened to "hide assets" by skirting the rules through places that have strong secrecy and jurisdiction rules. This is also a major challenge for the investigating agencies, as many countries don't recognize foreign judgments, while many others have entered into very stringent taxation treaties with India. Many individuals whose names were made public earlier have categorically denied of having any accounts abroad, which again leaves investigating agencies gasping for the evidence from other countries.

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