April,4,2016:
Supreme Court Judge Justice M B Shah (Retd) led SIT already looking into the Black Money issue.
An investigation published by an international coalition of more than 100 media outlets, based on 11.5 million records of offshore holdings, details how politicians, celebrities and other famous people use banks, law firms and offshore shell companies to hide their assets.
The International Consortium of Investigative Journalism, a non-profit organisation based in Washington, said a cache of 11.5 million records detailed the offshore holdings of a dozen current and former world leaders, as well as businessmen, criminals, celebrities and sports stars.
A cache of documents has exposed the secret offshore dealings of aides to Russian president Vladimir Putin, world leaders and celebrities including Barcelona forward Lionel Messi. An investigation into the documents by more than 100 media groups, described as one of the largest such probes in history, revealed the hidden offshore dealings in the assets of around 140 political figures, including 12 current or former heads of states.
The ICIJ has said an anonymous source provided the internal documents from a Panama-based law firm, Mossack Fonseca, one of the world’s biggest creators of shell companies.However, Ramon Fonseca, a co-founder of Mossack Fonseca, said the documents were obtained illegally by hacking but confirmed that many of them were real. He denied his firm has engaged in any wrongdoing.
As per RBI norms, no Indian citizen could float an overseas entity before 2003 — in 2004, for the first time individuals were allowed to remit funds of up to $25,000 a year under the Liberalised Remittance Scheme, and this limit stands at $250,000 a year now.
The Panama Papers come at a time when the Special Investigating Team (SIT) on black money headed by former Supreme Court Judge M B Shah is finalising its new action-taken report. The formation of the SIT was the very first decision taken by the Narendra Modi Government in May 2014.
The Special Investigation Team (SIT) on black money on Monday said it would thoroughly investigate the reported secret list of about 500 prominent Indians including actors, politicians and businessmen who have allegedly stashed money in offshore entities in tax haven Panama.
"Investigations are being carried out. We are going to investigate it (the list) thoroughly," SIT Chairman Justice (Retd.) MB Shah said.
Asked if the SIT had any prior information on these names, he said, "No. We got the information just now."
The Vice Chairman of the panel, Justice (Retd.) Arijit Pasayat, said they had asked agencies such as the Enforcement Directorate, the Income Tax Department and the Directorate of Revenue Intelligence to make an assessment of the list and prepare a report in this regard.
"We want to know what is the truth behind these [reports]. The SIT did not have these reports. Maybe, the investigative agencies did. So, once they submit a report to us then we can take the required action," Pasayat said.
From film stars Amitabh Bachchan and Aishwarya Rai Bachchan to corporates including DLF owner K P Singh and nine members of his family, and the promoters of Apollo Tyres and Indiabulls to Gautam Adani’s elder brother Vinod Adani. Two politicians who figure on the list are Shishir Bajoria from West Bengal and Anurag Kejriwal, the former chief of the Delhi unit of Loksatta Party.
Finance Minister Arun Jaitley on Monday said the government has formed a multi-agency group to probe the Panama Papers expose – released in India by The Indian Express – saying Prime Minister Narendra Modi had himself asked that the leaks be probed.
“PM Modi has himself requested that this matter be investigated… I think its a healthy step that these kinds of exposés are being made. All unlawful financial holdings abroad will face action,” Jaitley said.
Jaitley said the multi-agency group will comprise CBDT and RBI officials and will monitor disclosures as well as act upon them.
Here is a look at offshore accounts and how they are used:
What are offshore accounts?
Offshore bank accounts and other financial dealings in another country can be used to evade regulatory oversight or tax obligations. Often, companies or individuals use shell companies, initially incorporated without significant assets or operations, to disguise ownership or other information about the funds involved.
Where are the most offshore accounts?
Panama, the Cayman Islands and Bermuda are among more than a dozen small, low-tax locations that specialise in handling business services and investments of non-resident companies.
What are the legitimate uses of offshore accounts?
Companies or trusts can be set up in offshore locations for legitimate uses such as business finance, mergers and acquisitions and estate or tax planning, according to the global money laundering watchdog, the Financial Action Task Force.
The illicit uses of such accounts
Shell companies and other entities can be misused by terrorists and others involved in international and financial crimes to conceal sources of funds and ownership. The ICIJ says the files from Mossack Fonseca include information on 214,488 offshore entities linked to 14,153 clients in 200 countries and territories.
Crack down on financial havens
The Financial Action Task Force and other regulatory agencies publish assessments identifying weaknesses in enforcement of anti-money laundering and counter-terrorism financing efforts of specific countries and territories. Financial and legal professionals get training on how to spot potential violations, since in some cases lawyers and bankers are unaware they are handling illicit transactions. The EU has stepped up efforts to crack down on tax avoidance by multinational corporations.
Past scandals over offshore accounts
Banking secrecy laws tend to obscure offshore financial dealings. But the disclosure of other leaked documents by the ICIJ and other organisations in late 2014 drew attention to sweet tax deals offered by the tiny European country of Luxembourg to multinational companies and ultra-wealthy individuals. In the 1980s, the Bank of Credit and Commerce International, an international bank founded by a Pakistani financier, was found to have been involved in wide-scale money laundering and other illegal financial dealings.
https://youtu.be/7C52rG83LYc
Indiabulls, one of the country’s largest realty groups controlled by Sameer Gehlaut, brother Nagendra and father Balwan Singh, made headlines in June 2014 when it acquired a 87444-sq ft property for GBP 155 million at Hanover Square in London.
Before Indiabulls Real Estate Ltd entered the UK market, Sameer Gehlaut acquired at least three top London properties through family entities in Karnal, Delhi, Bahamas, Jersey and UK. Currently being developed as residential and hotel projects, these properties are owned by SG Family Trust, set up in October 2012 for the benefit of the family. IE
https://youtu.be/lBYCgJiSy1Y
