Negotiations with yoga guru Ramdev who is fasting to protest corruption broke down and both the guru and the Government of India toughened their stand, charging the other with breaking promises. “This government has always reached out but can also rein in. If we are accommodative, we can also be firm,” said HRD Minister Kapil Sibal claiming the government had met most of Ramdev’s demands while the guru told his supporters not to become violent if he was arrested.
The government gave Ramdev written assurances that in addition to existing laws relating to black money, a committee would examine the measures to strengthen the existing legal and administrative framework to deal with the generation of black money. The committee’s terms of reference would include ways to declare wealth generated illegally as a national asset; enacting or amending laws to confiscate and recover such assets and providing for exemplary punishment against its perpetrators. It would consult all stakeholders and give its report in six months.
However, Ramdev said a telephonic agreement was insufficient and that the government was just trying to obfuscate issues by forming a committee. While conceding that his demands had been met, he said his fast would continue. He disowned a letter given to the government (copies of which were circulated by Sibal, showing Ramdev’s signature) where he said, if his demands were met he would call off his fast by Saturday afternoon.
Ramdev said he was ‘forced’ to write that letter. Ramdev said he wanted a law against black money, not a committee. The government said a committee has to be formed to draft the law.
Briefing reporters, HRD Minister Kapil Sibal and Tourism Minister Subodh Kant Sahay said the government already had several measures in place to recover black money. This is under the supervision of the Reserve Bank. Those who violate this can be prosecuted under the Prevention of Money Laundering Act, 2002 (PMLA), which authorises seizure of money (including funds parked overseas), imprisonment and fine; prosecution under the Foreign Exchange Management Act, 1999 (FEMA), where the penalty can be three times the amount involved; and under the Income Tax Act where tax on undisclosed income could exceed the entire income.
The statement also said India had finalised Tax Information Exchange Agreements with 44 countries to strengthen the exchange of information relating to tax evasion, money laundering and other illicit activities.
The government vouchsafed information on its own – that in the last two years, over Rs 33,000 crore of mispricing had been detected in international trade and over Rs 30,000 crore of tax evasion detected domestically.
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In 18 months, a study by three national-level institutes to assess the extent of black money inside and outside the country and its impact on national security had been commissioned. The study will also indicate the sectors and mode of generation of black money and recommend measures for its prevention and control. A Directorate of Criminal Investigation had been created in the Central Board of Direct Taxes as a dedicated unit to track financial transactions relating to criminal activities. The Revenue Secretary was coordinating between Law Enforcement Agencies. India was negotiating with Mauritius to be more open in furnishing tax related information to India. People who visit tax havens frequently would be tracked.
Other measures to check corruption are already in place, government said. A Joint Drafting Committee, consisting of Government and civil society representatives is already looking into the provisions of the Lok Pal Bill. Punishment for the corrupt was being increased – provision for confiscation of money earned through corruption was already present under the Prevention of Money Laundering Act. 71 new special courts for trial of CBI cases relating to economic offences had already been set up.
On more efficient delivery of public services, a new bill would be introduced in Parliament at the earliest.
On technical and other education in Indian assurances were given that the framework would be strengthened.AICTE, which is charged with the duty of determining and maintaining standards of technical education in the country has constitute the Committee of Experts to draw up a concrete plan for measures to be taken to increase the use of Indian languages in technical education. This Committee will submit its report in 3 months. On land acquisition and organic Agriculture several projects were in the pipeline.