Black money case: SIT probing nine cases referred by CBI; PACL Ponzi schemes, defence deals by BHEL, BEML under scanner
The Special Investigation Team (SIT) on black money is probing nine cases referred by the Central Bureau of Investigation (CBI), including many defence deals and the Ketan Parekh scam.
The first report of the SIT submitted in August this year, accessed exclusively by the Zee Group, mentions recent cases like the Rs 45,000-crore PACL Ponzi scheme, supply of 87 armoured recovery vehicles involving BEML, BHEL and its partner UNIMPAX of Slovak Republic and the UK, the DSQ software case involving Dinesh Dalmia and Greenfield Investment in Mauritius, rubber plant over-invoicing involving Piyush Goyaland of MV Enterprises, fake Chinese suppliers' case involving RGR Impex Pvt Ltd, NAFED money-laundering case and STC export-import case involving Rajat Pharmachem Ltd.
The investigating agency has informed SIT that it has sent Letters Rogatory to various countries in connection with different cases over the years and the responses are still awaited.
The CBI has also suggested that the agency's officials should be deputed at Indian embassies in different countries.
The report also reveals that the Central Board of Direct Taxes (CBDT) has obtained consent waivers from at least 174 account holders from the leaked HSBC list of 628 alleged black money account holders. Prosecution proceedings are in progress against 27 for not furnishing account details.
Consent waivers are "no-objection" letters by account holders to the banks in divulging account details to investigating authorities.
CBDT, in its action taken report to the SIT, stated that they have assessed 14 cases after obtaining consent waivers from account holders. They have also assessed 65 other cases. The government is contemplating prosecution of some account holders for wilful attempt to evade tax.
The CBDT has informed SIT that the specific amount was mentioned only in 339 cases in the HSBC list, while no amount was mentioned against 289 persons.
The SIT has asked the Reserve Bank of India to provide the annual financial inspection report of HSBC for 2012. The SIT has also directed RBI to give data in cases amounting to more than Rs 100 crore and pending for more than two years with the Enforcement Directorate.
In an interesting reference, the SIT has directed the Director General of Foreign Trade to contact Raghvendra Jha of Australian University and request him to furnish detailed information to SIT confidentially.
Another major task before the SIT is to probe all issues relating to matters concerning and arising from the unaccounted monies of stud farm owner Hassan Ali and Kolkata-based business family Tapurias.
The SIT has recommended speeding up the legislative processes concerning black money and referred to the Rs 660 crore fraud by the Rashmi Metaliks Ltd, in which more than 100 adjournments before the high court was granted.
The company's revenue had grown phenomenally from just Rs13 lakh to Rs1,185 crore within four years of its establishment.
The SIT report also states that the illicit financial flow into India from 2002 to 2011 is around $343,922 million and it has increased massively after 2006.
The SIT has also stated that all exports worth more than Rs1 crore should be transacted through digital means. It specifically asked CBDT to submit feedback on the assessment completed in pursuance of information obtained from Mauritius at least in 10 cases.
The SIT report also mentioned that the Directorate of Revenue Intelligence (DRI) has found that forged bills of postal documents were submitted to banks and huge amounts of foreign exchange had been remitted to various overseas accounts, mostly in Hong Kong.
The report called for the setting up of an investigation unit with the Enforcement Directorate as the nodal co-ordinating agency, so that various sources could be investigated under respective statutes.
The SIT has suggested amendments to the Foreign Exchange Management and Prevention of Money Laundering Acts.
It stressed on the need to make the system more officer-based than clerk-based, which should be possible, once computer technology is induced into the tax administration.
The present system of door-to-door surveys should be strengthened by giving it statutory backing.
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