Issues Overshadow Swiss Initiative To Uncover Black Money

Dark Days Ahead: Issues Overshadow Swiss Initiative To Uncover Black Money

For Ram Jethmalani, the fight to uncover black money has no end. The Indian government has informed the apex court that it cannot disclose the names of those persons who have stashed black money abroad. The names cannot be publicised, says the government, in view of the double taxation avoidance agreement.

The government has informed that names can only be revealed to the concerned agencies. The dilemma being faced by the NDA government is the same one which the UPA government had once faced. The only difference is that the fight for unearthing black money is now facing an obstacle. Returning the black money after unearthing violators was a key poll promise made by the BJP at the start of 2014.

Now the barriers that stand before the Modi government are pretty much the same as the ones which the Manmohan Singh government once encountered. The Supreme Court has agreed to hear the plea of the NDA government on October 28.

The bad news may be that the government's hands are tied, but the good news is that the Swiss authorities have agreed to examine the Indian request for banking information and ensure timely details are revealed saying that they would also "assist in obtaining confirmation on genuineness of bank documents on request by the Indian side and also swiftly provide information on requests related to non-banking information".

"The Swiss competent authority will provide the Indian side with the requested information in a time-bound manner or else indicate the reasons why the cases cannot be answered within the agreed timeline," the Indian and Swiss joint statement following the delegation's meeting said. On its part, the Modi government's Finance Minister Arun Jaitley has issued a statement to the press saying the DTAA or Double Taxation Avoidance Agreement between Germany and the UPA government is coming in the way of resolution of issues.

Jethmalani who was behind the start of the enquiry to resolve the black money issue has alleged the Modi government is trying to protect those with black money. Congress spokesperson Abhishek Singhvi is saying that the NDA government is facing a reality check. The crux of the matter is that the issue remains unresolved as of yet even as Swiss authorities are ready to reveal the HBSC list of Indian tax violators, which it had earlier disagreed to.

The Swiss have agreed to assist the Center in the hunt to resolve the HSBC fund issue and share details of persons banking with HSBC who have been probed by the Income tax. Around 60 individuals are currently on the HSBC list for tax violations.