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This is the SIT’s third report on black money to the Supreme Court, in which it stated the recommendation on cash holding has been forwarded to the Department of Economic Affairs and is awaiting response. “The cash amount is normally used for illegal transactions.”
The SIT noted that the Uttar Pradesh government has not taken action against Yadav Singh, the former engineer-in-chief of Noida, Greater Noida and Yamuna Expressway Authority, despite huge amount of unaccounted money found in his possession.
The SIT had recommended the case against Singh, the prime accused in the multi-crore farm house scam, should be probed by the Central Bureau of Investigation (CBI). However, the investigative agency informed SIT that it is a state matter and it cannot take action without authorisation from the state. The SIT asked the apex court to issue appropriate direction in the case.
Another key recommendation is that senior appointees in the government such as the Reserve Bank of India governor, Securities and Exchange Board of India chief, CBI director, and secretaries of government departments file affidavits stating they do not hold illegal money abroad.
The SIT also said the quantum of black money from the 628 HSBC foreign account cases is Rs 6,400 crore.
In 289 of the cases, no amount has been mentioned. The Central Board of Direct Taxes (CBDT) has found 403 of the 628 cases as actionable and assessments have been completed in 373 cases.
Following the visit to Paris by officials, 575 new cases of tax evasion have come to the notice of SIT in the last week of February, where the investigations are ongoing.
On the basis of a report by International Consortium of Investigative Journalist, inquiries have been conducted by the income-tax department.
“It is ascertained that CBDT has been able to detect unaccounted money to the tune of Rs 7,078 crore during 2013-14 and the corresponding figure is Rs 4,456 crore for 2014-15,” stated the report by SIT.
According to the report by Global Financial Integrity, as of December 2014, the illicit financial flows for India in the past decade is to the tune of $5 million.
“India has now acquired the fourth rank for such illicit financial flows, out of 25 countries,” the report noted.
As part of other measures to tackle the menace of illicit financial flows, the SIT suggested a database sharing amongst various departments (government), notification of central know-your-customer registry, Directorate of Revenue Intelligence inquiry into illegality (if any) in special economic zones and attachment order by the Enforcement Directorate should have a clause for income tax dues.
The SIT has also recommended that special courts be set up for trail under the Income Tax Act.
| TACKLING BLACK MONEY |
SIT RECOMMENDS
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