The central government has told the Supreme Court that it would make a fresh and comprehensive study of black money generated in India and abroad through three prominent institutions.
These research bodies will be assigned the task of assessing the unaccounted money parked outside the country in tax havens, whether such amounts held outside endanger national security; and they will identify important sectors of economy where unaccounted money is generated. They will also examine the conditions which generate such black money.
Further, these institutions will be asked to suggest ways for detection and prevention of this evil. They will specifically study the role of registered corporate bodies in stashing away money abroad.
The government has nominated the National Institute of Public Finance Policy, the National Institute of Finance Management and the National Council of Applied Economic Research.
These details are contained in the affidavit which the government has filed before the Supreme Court in the writ petition filed by noted lawyer Ram Jethmalani seeking information on money held abroad illegally by unknown persons.
The government admitted that the last comprehensive survey on this subject was done by the Central Board of Direct Taxes in 1985 with regard to the previous year. The total amount discovered was Rs 36,786 crore. But even that was based on estimates and various assumptions. The government admitted that it had no authentic figures. Therefore, the finance ministry proposed a thorough study on this problem.
Regarding the current demand to disclose the names and details of the accounts held in European countries, the government stated that it had received information from Germany of about 18 persons who owed in all Rs 39 crore in taxes and interests. The names cannot be disclosed because of international treaty commitments. The case is likely to come up before the court this week.