WANTED : A White Paper on Indian Wealth Stashed Abroad
When in the year 2008, the BJP first raised the issue of Indian money stashed abroad in Swiss Banks, or other tax havens, we were ridiculed by Congress Party spokesmen. Why did you not pursue the matter when NDA was in office for six years, they asked. Prime Minister Dr. Manmohan Singh himself described it as an election stunt.
I feel happy therefore that for the first time in the history of the Indian Parliament the President’s Address itself has referred to this matter and told the joint session: “India is an active part of the global efforts to facilitate exchange of tax information and take action against tax evaders.â€
In Parliament, both the Prime Minister and Finance Minister have not only conceded the significance of the issue but affirmed that Government is proactively pursuing the issue, and negotiating with twenty countries for exchange of information about Indian nationals who have hoarded their tax- evaded, or ill-earned wealth abroad.
The country, however, will not remain satisfied with just affirmations and announcements. Ever since the BJP has raised this matter two years back, Congress leaders have been pooh-poohing the estimates of Indian wealth abroad made by the BJP Task Force which studied the matter. A senior Congress Minister said these estimates were based on obscure sources on the internet.
The Task Force set up by the BJP comprised Shri S. Gurumurthy (Chartered Accountant and investigative writer, Chennai); Shri Ajit Doval (Security Expert, New Delhi); Dr. R. Vaidyanathan (Professor of Finance, Indian Institute of Management, Bangalore); and Shri Mahesh Jethmalani (Senior lawyer, Mumbai).
This Task Force, after studying various sources which had dealt with this subject estimated that Indian wealth parked in foreign tax havens could be anywhere between 25 lakh crores to 70 lakh crores!
It is significant that in a front page coverage of the Prime Minister’s speech in Parliament last week in which he mentioned that India had completed its discussions with twenty countries including Switzerland, a leading daily of Mumbai also gave some estimates of Indian wealth abroad which approximates to what the BJP Task Force had said. The Daily DNA of Mumbai (6th March, 2010) reported: While no official data is available on the quantum of such funds parked in tax havens like Switzerland, it is estimated that such black money held by Indians nationals could be worth $ 140 billion (That is more than Rs. 6.38 lakh crores!).
So long as the west dominated world economy was doing well for the U.S. and other western nations, the entire world, including India, were reconciled to the banking secrecy of these tax havens. They could do nothing about the laws of these countries. But the recent global economic crisis made not only President Obama, but also several European countries like U.K., France and Germany change their attitude, and join hands to make a determined effort to have Banking Secrecy laws in these countries changed.
Last year Washington forced the Swiss banking giant USB to disclose the names of 4450 American clients suspected of hiding assets in Switzerland.
Incidentally, I may mention that a writ petition in respect of Indian monies secreted in Swiss Banks etc. is pending in the Supreme Court and in this petition there is specific mention of a Pune stud farm owner, one Hasan Ali Khan, who had deposited a massive amount in Switzerland’s UBS Bank. It is gathered that the concerned bank has confirmed this, but Indian authorities have not been able as yet to satisfy the Swiss government’s demand for proper documentation!
I had first raised this matter with Dr. Manmohan Singh after Germany publicly declared that they had received from Liechenstein a list of German account holders in that tax haven, and the list happened to include some Indian names also. They were willing to share this with India, if officially asked. It is understood that a list of fifty names have since been received by our government. The Indian Government has refused to disclose these names on the plea that Germany has imposed certain legal hurdles on such disclosure. It is rather odd that Germany has released its own list and yet wants to ensure that the Indian names remain under wraps. Or is it our own reluctance?
Now Government has formally told Parliament that negotiations have been completed with twenty countries including Switzerland.
I believe that events have reached the present pass principally because BJP made this issue an election issue. I felt happy that during the election campaign this matter was hotly debated among the people. Sanyasis like Swami Ramdevji would invariably refer to it in his sermons. In an article published by Financial Times, under title “India’s Curse of Black Moneyâ€, Raymond Baker, Director, Global Financial Integrity, wrote: “India has shown that this issue resonates with voters. Politicians in other developing democracies would be wise to take note.â€
I wish to stress that Government is duty bound to share with the people the outcome of their negotiations with the twenty countries.
I urge that a White Paper be published on this issue, and the nation be taken into confidence.
Lastly, let me also take this opportunity to wish all my countrymen on the occasion of Navsamvatsar [Chaitra Pratipada], Ugadi, Gudhi Padwa, Cheti chand and Chaitra Navratri.
L.K. Advani
New Delhi
March 15, 2010
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March 15th, 2010 at 9:23 am
Sir, please push this hard in LS and also take up the issue mentioned here. Russian govt openly stated that they gave money to Gandhi parivar.
http://satyameva-jayate.org/2010/03/08/bjp-poll-strategists/
March 15th, 2010 at 9:36 am
Sir,
As you said our government must do something about this. But this UPA government will not take required actions.
I expect NDA to come in power and pursue this in their administration.
March 15th, 2010 at 12:04 pm
The country needs to chase the defaulters and also bring the money back into the country. This should be done with utmost priority and accross politics. Great move.
March 15th, 2010 at 11:13 pm
Advani ji has appropriately raised the issue and now he should confront the Prime Minister on this issue one to one in Parliament. Let us see what happens in Parliament tomorrow, today we did not hear any thing on this in Parliament.
Praveen Shankar Kapoor
Delhi
March 15th, 2010 at 11:27 pm
If Mr. Advani is listening then its very easy to find out that more than 80% of the black money from Swiss banks has already come into mumbai real estate with the prices now rising above 100%. Whereas China wants to keep away HOT money India wants to use it to improve its economy. This will hurt India’s future economic conditions when the people will know about India’s fake growth…
My simple Question: Why Govt giving Businessman, fake Foreign investors an opportunity to invest their black money in India’s real estate?
My suggestions to Sri Advani is to keep an eye on this and this can be a good agenda for party and for middle class people..
March 16th, 2010 at 2:21 am
Sir,
The time has come that we attack this inefficeint government from all sides and expose their loopholes. Please please press it hard in the Lok sabha and force the government to take action. Do not worry if the Lok sabha is adjourned many times during a session. At least, when the parliament session is adjourned people of this country who are in deep slumber get to know the reasons why the paliament is adjourned. This will make people aware that the opposition is alert and is fighting for their cause. Don’t leave any chance, topple down this government we’re ready to bear the expenses of another general election whose cost will be much lower than what the ministers in this government are making in multi-crore scams or will make in next 4 yeras.
March 16th, 2010 at 3:02 am
Dear Sir
I have also posted in your forum about Swiss money and Congress’ efforts to protect Gandhi family’s secrets intact. The question is - If the time comes when Swiss bank agrees to show all the secrets then by that time all this black money would have moved to other safer heavens. The country will still be at a loss. It has happened in the past that when anything was planned these thieves found a way to evade getting caught.
This all should happen secretly without any public and media information so that they get caught red handed otherwise patriotic people like you will be defamed if after all the Ho-Halla, nothing is found in these banks.
March 16th, 2010 at 6:01 am
It is heartening to see the BJP using online media like blogs to discuss some of the grave issues facing the country.
If the BJP truly believes in uplifting the Indian people this stash of black money can help a long way. This is the money of the Indian people, laundered by corrupt tax evaders. Even the conservative estimate of $140 Billion is bought back into the country, one can witness a revolution in public spending and living standards can increase dramatically. The Obama administration has given the BJP an Alladin’s lamp. If they fail to utilize it, they will be the ones to blame.
March 16th, 2010 at 9:18 am
YOU MAY BE RIGHT, BUT THE QUESTION IS WHY ARE YOU RAISING THIS ISSUE WHEN YOU ARE NOT IN POWER ? WHY WAS THIS NOT TAKEN UP WHEN SRI VAJPAYEE JI WAS THE PM ? THERE ARE ALSO MANY LEADERS IN YOUR PARTY WHO ACCUMULATED HUGE WEALTH DURING THE GOVT IN UP. THEY KEEP EARNING TODAY ALSO. HAVE YOU ANY PLAN TO STOP THIS WITHIN YOUR PARTY ?
March 16th, 2010 at 4:20 pm
Mr Lastman of india,
Advaniji didn’t raise this issue during BJP government but it’s the same with congress. They too didn’t raise this issue untill BJP made it a campaign issue.
Also, at least, Advani sir has made people understand the situation better and he has also created awareness amongst people. None of these steps were taken by UPA govt. They are only responding now because they have been cornered.
March 16th, 2010 at 5:06 pm
Respected Sir,
I don’t think I need to stress here how disgusted we Indian people feel about the shenanigans of politicians who have been robbing us blind for decades now and stashing their ill-gotten gains abroad. The latent anger is seething and boiling, looking for outlets. It just needs a hair trigger to explode. The common people have been watching their elected representatives lie and cheat their way into wealth, while their manifestos have been thrown into trash.
I am optimistic that one day change will come. If its initiated by the people of India it will be terrible for these politicians and people like me with anger seething inside us for decades will be happy to pour out into the streets to be a part of the change.
Jai Hind!
March 16th, 2010 at 10:03 pm
Sir
Corruption is very high in India and politicians are basically responsible for all this. We all support you in your efforts in brining back the lakhs of crores of rupees being parked in Swiss bank by currupt politicians, film stars, businessmans etc. This we need to do as fast as possible.
March 16th, 2010 at 10:22 pm
This Black money must be brought to India as it belongs to India and its citizens. The money would be of great help in India’s progress and social welfare.
Alongwith bringing the black money back following steps also must be taken to avoid creation of black money.
1) Prevent corruption and have strict laws and punishments for anybody found accepting bribe etc.
2) Slowly phase out Rs. 1000/- denomination. Big denominations like Rs. 1000/- makes it easier to deal in cash and creates black money. Largest denomination should be Rs. 500/-
3) Land and Real Estate purchase records must be stored online and Real Estate must be strictly regulated by a Real Estate Regulator and a new Real Estate Framework. Because Real Estate and Land dealings are the biggest creators of black money.
March 17th, 2010 at 10:50 am
Sir,
While paper on whatever policy may be is not going to bring out people to vote on eve of Election Day. So, ultimate aim for people is how their grievances is addressed at local level and then how their voice reaches to higher hierarchy is what brings people out to vote.
Your article on blog is really good but I think somewhere BJP is going to commit mistake is during Bangalore Corporation Election. This election is going to be litmus test for BJP has large section of voters are literate and techies so if BJP proves majority and comes to power then BJP can claim that urban and middle class are still with BJP.
Someone on Orkut: Face Book has raised a concern that he worked for BJP almost for 25 years and he was asked 25 Lakhs for ticket allocation. It is really ridiculous if local leaders have done so then it is very serious allegation and need to be looked into it.
Details of that Ex-BJP leader is: -
Name: - Nagesh reddy
Ward No: - 143
Candidate: - Independent (Current)
March 17th, 2010 at 5:18 pm
@MR. Lastman of india…I think the question which u raised why NDA didnt take up this matter when in power is already answered by advaniji article (world pressure on disclosing swiss bank details have been created only recently with global meltdown and western countries taking the lead..its obvious, india is not a superpower which by itself could have done it)..
Now the time is ripe to get the details, if UPA govt is serious. Regarding your charges that BJP is also involved in this corruption, let truth come out (which BJP seems to be more interested in coming out as compared to congress) and then people can thmselves decide who made the money and who did not..I see your comments almost on all Advaniji’s blog and it seems you write with a definite frame of mind to criticize BJP even without reading it.. you can criticize BJP/ Advaniji, but that should look objective..
March 17th, 2010 at 5:50 pm
@advaniji
I feel that one of the major concerns raised by many media personalisties (although most of the time I feel media is biased against BJP) in all the debates is though BJP is criticizing UPA economic policies, it doesnt have any alternative suggestions…
For the urban/ young India, economic situation/ growth is going to be a very important issue in 2014. I feel that beside highlighting how BJP handled the economy/ inflation in a robust manner despite the sanctions imposed due to nuclear test (this can also be emphasized to stress upon NDA never came under US pressure at the cost of nation’s interest),it can expose the current corruption and manipulations relating to economy by UPA. In my view, it is also very important that BJP presents this views not only through their spokespersons but more importantly by some emminent economists/ IIM professors etc.
March 17th, 2010 at 10:59 pm
Dear Advani ji,
I first came to know of this issue when I read on a news channel in the bottom strip about this money in swiss accounts. And this news strip I think lasted a couple of hours. Normally such news would be flashed again and again. But it was not. My point, Sir, is that even the media is not interested in this issue. The only time they brought it up was when you, sir, had raised it as an election issue. The congress of course can not take this seriuosly. If they take any action against Mr. Hasan, they will open a can of worms and worse still, score a self goal.
Please do raise this issue of swiss accounts in the Parliament. The goverment needs to be pressurised to act. Otherwise, this would also get diluted and forgotten like the bofors scam, eventually.
Regards
Vikas
March 18th, 2010 at 10:18 am
Sir,
“Pune stud farm owner, one Hasan Ali Khan”
Now it is clear that Indians have surplus wealth in Swiss bank, so one name has come out which you have mentioned in your blog, so like him how many name can we expect to come out is the question running in every one’s mind.
Of course, top most personalities are going to be politicians followed by them will be business mens, so are we planning to question them in event of disclosure by Swiss bank ? My thought process says is that we must question them on their own wealth? When IT dept tracks our salary and purchases why govt must not ask this people how they made money?
In case if their answer is good and legitimate one then we all Indian will start that same business which they did or we all will join politics and make India richest country in the world !
I think one more member can be added to the task force constituted is former IIM-Ahmadabad Director Mr. Bakul Dolakia, currently he is an advisor to Adani Group.
March 19th, 2010 at 4:24 pm
@advaniji
There is a section of the party, particularly the RSS-appointed Organising Secretaries in all the states who are living in another age. They are detached from modern realities and youth impulses. They pull the party backwards.. why cant they may be tried to understand (by giving facts/figures/survey results) to have a more modern outlook.. . Now, no one believes in creating violence in the name of valentine day/ protection of culture. In fact, it has alienated a lot of young voters without adding any new ones. Please do something about it before it’s too late and before biased media is able to brand BJP as a medieval age party.
March 19th, 2010 at 4:38 pm
Dear Advaniji,
Even after being a staunch BJP supporter, I think the RSS should steer clear of party politics. RSS full-timers should be withdrawn from BJP. They have built a party within a party. Let the RSS concentrate on upholding Hindu interests in civil society… perception about RSS (may not be a reality) is that it believes in many of the old ideoligies which might have been relevant 15-20 yrs back but have lost their relevance now. It makes BJP look like an organization living in the past.. I think you should do something about it.
March 20th, 2010 at 8:57 pm
Advaniji, you need to take an attacking position instead of retreating into a shell if someone takes an offensive insulting posture against you. Congress leaders will keep making statements like “PM-in waiting” etc. but that doesnt mean you stop raising valid issues. I can understand that at your age you have started to take these attacks too personally but this is politics and you tend to remain assertive. This is a very valid issue which should be taken up by BJP and other opposition parties (who dont have money stashed in Swiss Banks) in Parliament.
March 21st, 2010 at 9:07 pm
I admire you for being able to setup a viable alternative to the highly incompetent and corrupt Congress and Janata parties (and their numerous offsprings). Indian people owe a tremendous debt of gratitude to the initial BJP Governments for not putting career crooks in the cabinet.
I think that we need to also recognize that punitive taxes complemented with administrative theft, “private taxation” by administrative machinery and waste of Indian people’s resources have a great negative impact on people’s energies and confidence. Therefore, revolutionary administrative reforms (also mentioned by Baba Ramdev) to check corruption should be the second vector of attack along with efforts to retrieve money from tax haven — otherwise this would be just more money poured into the Indian black hole and effective redistribution of wealth from one set of crooks to another set.
April 4th, 2010 at 9:50 am
Indian Public is the one who complaint maximum of corruption but believe me Indian public does not mind corruption at all. Whatever cribb or complaint you see is just out of Jealousy of not being able to make the money themselves. I may be wrong but I think corruption for Indians is a form of Machoism or Virility. Honest leaders are not respected in India. Thats why BJP after running a successful Honest Government in UP lost elections.
The party raised the issue of Black Money in 2009 elections, but what happened ? Congress won by a much higher mandate. So it proves that Corruption is not an issue at all.
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