Today, Central government told to Supreme Court that information on black money given by foreign countries with which India has double taxation avoidance agreement cannot be made public.
Viewed as going hand in hand with corruption, “black money” has been at the top of the agenda of widespread public protests over the last couple of years.
Prime Minister Narendra Modi’s cabinet has given SIT, headed by retired Supreme Court judge MB Shah, a sweeping mandate to crack down on India’s infamous and bustling parallel economy.
Black money arises mainly from incomes not disclosed to the government usually to avoid taxation and sometimes because of its criminal links.SC had directed the government to constitute a SIT to investigate individuals whose names were disclosed by Germany for having accounts in LGT Bank in Liechtenstein , a European principality known for its banking secrecy laws. Government has given SIT a wider mandate to investigate the operations of Indian persons and “entities” whose money is found stashed in foreign banks. SIT will file periodic status reports to the Supreme Court.
The income tax department has given to the Enforcement Directorate (ED) , the agency that tracks overseas money laundering deals , 17 individuals who had named holding accounts in Liechtenstein’s LGT Bank.
