Expressing concern that the black money stashed in banks abroad might have originated from arms deals, drug trafficking and smuggling, the Supreme Court asked the government what action it had taken.
The Supreme Court (SC) came down heavily on the Centre on Thursday for its inertia in bringing back black money stashed in foreign banks and demanded that the government ascertain the money’s source.
What action, if at all, the government has taken against individuals and firms having foreign accounts, a bench headed by justice B Sudershan Reddy asked and directed the government, Reserve Bank of India and the central vigilance commission to respond by next Thursday.
SC was hearing a PIL filed by a group of concerned citizens led by Ram Jethmalani. The petition seeks direction to the government to ensure that the at least trillion dollars stashed by Indians in certain foreign banks are brought back.
“We want to know what steps you have taken against people who have accumulated so much money in foreign banks. “Where has the money come from? It might be because of arms deals, smuggling, narcotics, drug trafficking or something else. These are more serious issues, when you know the names, what action you have taken?” SC said.
“You know the names, [you know] where the money is lying, still you are talking about double taxation,” the bench scoffed at solicitor general Gopal Subramanium, who had said the government was taking all actions under the double taxation avoidance agreement against people who had stashed money in foreign banks.
“Looking at the issue from the taxation point of view is just one aspect but there are other serious matters associated with black money which we are concerned about,” SC said.
Citing a study by Global Financial Integrity, finance minister Pranab Mukherjee had recently estimated the present value of illicit money outflow at $462 billion.
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