Time to get Back Black Money

by DR NARAYAN B IYER
Posted on 2009-05-11
THE Supreme Court’s directive to the Centre to file cases against persons suspected of parking black money abroad is timely.It is high time that India takes stern action against the culprits and brings back all Indian money stashed in Swiss bank accounts.
In fact there is global concern about terror funds being stacked in foreign banks. The international community should also step up pressure on foreign banks for greater transparency.
Of the 160 developing nations facing capital flight through illicit channels, India is placed fifth with an annual illicit financial outflow between $22.7 billion to $ 27.3 during 2002-06.
Not surprising, China, Saudi Arabia, Mexico and Russia are ahead of India with high incidence of tax evasion.
The recent case of Pune businessman, Hasan Ali Khan, who has huge sums stashed in Swiss bank accounts, is just the tip of the iceberg. There are many more individuals who have stashed black money in such tax havens as Switzerland.
Unless the government provides details about the specific charges on the criminals, the banks will maintain secrecy as the professional norm. The government has to file criminal cases against such individuals, which will provide leverage for the foreign banks to share the secrets.
Political parties in India instead of taking the issue of black money stashed abroad seriously are trying to make it a poll gimmickry.
The common man is more sceptical about the government’s mishandling of several crucial issues.
Many governments have come and gone after India’s independence but nothing much has been done to tap the money back.
On the contrary, the illicit financial outflows have just multiplied. The new government – irrespective of its political combination – will have to take a resolute action against the powerful and the influential.
Operation Black Money will not be an easy task, but, nevertheless, must commence.