Black Money back to the Centre Stage!

Modi Government was forced by the Supreme Court to submit names of black money account holders and had revealed 627 names in a  3 - sealed envelopes to the Court. There are 3 lists in the envelopes. First list contains details of correspondence, treaties and agreements that India had signed with France and other nations. Second list contains all the 627 names. Third list contains the status report on the probe in these cases.

Chief Justice of India H.L. Dattu rapped the Centre for providing a protective umbrella to foreign bank account holders and following that harsh comments, Central Government had submitted 627 names. Perhaps, the Supreme Court had not anticipated that the Central Government would comply and this was quite explicit, as the Supreme Court had admitted that it was pushed into asking for the names. But, the Supreme Court led by Chief Justice H.L. Dutta refused to even open the sealed covers and glance through the names. The sealed covers were directed to be sent to the Special Investigation Team for their further course of action.  It happened to be a ‘U-Turn’ of our Supreme Court.

The following remarks of Chief Justice indicates the Court’s dilemma and U-Turn:  “We would not have asked for the names, but you came out with this application to modify our order, so we said you give us the names first. You would not have wasted your time and we would not have wasted our time if you had taken the hint from Mr.Jethmalani when he made some sarcastic comments about your application.”

Apart from Supreme Court’s harsh words – holding a protective umbrella over persons stashing black money in bank accounts abroad, its harsher comments for Attorney General Mukul Rohatgi for a modification of the order directing disclosures of all the names had thrown more fire than light.

The Supreme Court thundered: “Don’t tell us to modify our order. We will not modify or change even a word in our order. You give us all information you received from foreign countries and we will decide the course of the probe. We will decide whether to order a CBI or an Income Tax probe or entrust the probe to some other agency. We can’t leave the issue of bringing black money to the Government.”

But, when the Court got the sealed covers containing the list of names of black money holders and after hearing the detailed information about the contents of the lists provided in the sealed covers, the Supreme had asked the Auditor General Mr.Rohatgi whether the Government was pressing for the modification of the Court’s order for which he replied in the negative. This question, if seen in the backdrop of the Court’s harsh words of ‘we will not modify or change even a word in our order etc.’, puts the Apex Court in a poor light to the say the least.

Apex Court’s outbursts and utterances in this sensitive case seem to be avoidable, as the nation expects Apex Courts should be more mature  and practical. If the public at large poses a question to the Supreme Court: Can the present Government be accused of laxity in bringing back black money?

Answer is an emphatic  ‘NO’.

Proof?

Proof No.1:  Special Investigation Team (SIT) which was kept pending by the UPA Government in spite of the Apex Court’s direction was constituted  as the first decision of the Modi Government.

Proof No.2: SIT was already supplied with the same list of 627 names by the Government as early as June 27, 2014. The SIT Chief Mr. M.B. Shaw had confirmed that there was nothing new in the list and that names were already known to them. As SIT is being monitored by the Court, it is a flaw that the Court was not aware of the fact that SIT had the list supplied already by the Government.

Proof No.3: SIT confirmed that the present Modi Government is sincere in their efforts to bring back the black money and that they are not protecting any one. Above all, SIT had opined that names in the list should be kept confidential and that it would jeopardize our efforts to bring foreign black money into India, if we venture to reveal the names to the public.

Proof No.4: The Modi government achieved a breakthrough when Switzerland agreed to provide information if the government can show evidence that an independent investigation under money laundering laws has been initiated against an account holder.

Proof No.5: The Foreign Account Tax Compliance Act with the US government will be signed by the Indian Government around December, 2014 which will ensure free flow of data about accounts by Indians abroad and vice versa.

The present Modi Government took charge by May 2014 only and only 5 months had passed and during this short period, Modi Government had shown no laxity in bringing black money back to India. Mere furnishing a list is not enough, but, one should be anxious to get the money. And even punishment and other criminal actions are secondary.

But what is really there in the list that contains information on 628 Indians? The Indian Express has reported about the details in the list and notes the following: The list comprises 613 individuals and 15 entities (companies and trusts). No amount has been specified against 289 of them and 122 are repeated entries for joint account holders. Indian tax authorities have not been able to track 96 of them. Discounting for all of these, the list has some 120 names against whom India can launch investigations.

As SIT was answerable to only to the Supreme Court in their investigations and their approaches, we are at a loss to understand why there were differences of views in respect of black money holders lists, its confidentiality or otherwise, SIT having been provided with the list – but, not known to the Supreme Court etc.  It is not a healthy jurisprudence for the Supreme Court to say on October 28: Why providing protective cover to account holders and on October 29th , the same Court had said: ‘Don’t want to embarrass people by opening list given by Government.’

Actually the Supreme Court seems to be suffering from ‘Estoppel’ syndrome, as evidenced by the facts mentioned above.

Now, it becomes the sole responsibility of the Supreme Court to bring back the black money with the help of the SIT. It seems that the Apex Court is going beyond its jurisdiction and it may sound even as judicial activisms. Still, if this activisms end up with positive results, India is the beneficiary and gainer.

Jai Hind.