The Government under pressure on another front – getting back money stashed outside

The Congress (UPA) Government is already under pressure on a number of different fronts related to corruption, and the perception that the Government has started drifting on policy matters has been increasing to a large degree. With the recent disruption in the entire winter session of Parliament over the demand for a JPC probe in the 2G scam, and the recent utterances by Kapil Sibal against the report of the CAG, one can be sure that the budget session of Parliament is likely to be equally troubled unless the demand for a JPC is conceded. The Government is unable to get its legislative business through, and any impedances in the passage of the Union Budget is likely to cast a deep pall on the future of the Government, atleast in terms of policy.
Now, the Government is facing another pressure point, that of identifying the Indian nationals who hold money outside India, and start to getting this money back. The Government, because of all these corruption scams, has a much reduced credibility. Even the Prime Minister, who is supposed to be personally very honest, has a much blacker reputation because it is now being projected that this Government is incredibly corrupt and he is not seen as doing anything against this. This is contrasted with the attitude that many other Governments have taken. The US put incredible pressure on many banks in Switzerland and other such countries, to the extent that officials from many of these banks were hesitant of stepping outside their countries because of fear of arrest. Finally these banks had to settle with the US and provide the information they need.

Next, the German Government paid money to an informant who revealed the names of a number of account holders in these banks, and refused to listen to any attempts by the Lichtenstein Government (where the banks were based) about the apparent stealing of such names. The German Government also offered to provide names to other countries whose nationals had holding in these banks, free of cost, as long as the respective Governments asked for it.
On the other hand, the Indian Government has been hiding behind various treaties and legal statements about banks from other countries refusing to cooperate. There is no apparent effort to use any kind of push, explore other options to identify the people who have accounts overseas. Most of these accounts are against the law, especially with speculation that the money comes from corruption, deals, drug money, smuggling, etc. This money could be used for purposes against India, and the speculation is that the total value of this money is more than 50% of India’s economy.
Now, the Supreme Court is pushing to get more details, forcing the Government to take more steps, and the Government seems to be trying its best to make the court happy without actually doing anything (link to article):

New Delhi Government on Thursday found itself on the backfoot in the Supreme Court which asked why action has not been taken against those who have stashed blackmoney in foreign countries and asked it to go after the source of money which may be from arms deals, drug trafficking and smuggling.
The apex court directed the government not to restrict its probe on the aspect of tax evasion only and expand its ambit by tracking the source of money which might have originated from anti-national activities.
“Looking at the issue from taxation point of view is only one aspect. Some names have been given to you in respect of a bank. What steps have you taken? Have you set law in motion. They are Indian people and are amenable to Indian law,” a Bench comprising Justices B Sudarshan Reddy and S S Nijjar said.

2 comments to The Government under pressure on another front – getting back money stashed outside

  • Ya what you have written is a pretty good. India should also acquire a stance like that of the German government. What may happen if Indian Govt. declares the name. Ridiculously those whose accounts are there, Indians will get the corretness of those who are holding the accounts and the real “THEIVES” of the Indian wealth. JAI HIND!

  • Srikanth

    The worst Prime Minister of India from the date of Independence is undoubtedly Manmohan Singh. The prime-minister has the liberty of the government run Doordarshan to air his thoughts about price rise to lessen the panic in public. He didnt feel like addressing his nation in crises. He hardly speaks.

    Government has been taken to ransom by people like A Raja. Our PM, no comment.
    Price Rise – No comment.
    Petrol Price rise – No comment.
    Black Money in Swiss and Leichenstein Banks – There he comments. We cant reveal the names of the thugs who plundered the nation (What is the message he is sending?)

    Look at our other other minister Pranab Mukheerjee who feels Finance Ministry is his fathers property.

    Price Rise – Comments are, Poor people have started earning more. So they started eating more. Hence the price rise.
    Petrol Hike – Comments are like Hitler-like. “There is no question of a roll-back”
    Black Money in Banks – No comments (is he a finance minister?)

    These attitude of the Indian Government proves that we are going back to the monarchy days. Our politicians are least bothered about the common man.

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