Nation
Here is proof that Congress is lying about the 700 Indian accounts in HSBC

What Arvind Kejriwal has revealed so far about the 700 Indian accounts in HSBC Switzerland is the tip of the iceberg. The I-T department and therefore the Congress know much more. Here is the proof from a Moneylife Foundation seminar. We suspect Kejriwal knows that the I-T has all the details and is daring the government to sue him, which will nail the Congress’ lie

At a Moneylife Foundation seminar on 13 December 2011, one of India’s best-known tax experts, Anil Harish, explained at length the consequences of the hacked list of 700 Indian bank accounts at HSBC Geneva, handed over to the French government.

 

What is remarkable about Mr Harish’s talk is that a lot more about the aftermath of that I-T investigation was already in the public domain, than has been revealed by India Against Corruption (IAC) on 9th November.

 


What comes out clearly from Mr Harish’s talk is this:
 

1) That the list of 700 persons waved by Arvind Kejriwal and shared with the media is genuine. And, as Mr Harish says in his talk, the account holders who were called in for the investigation would confirm that the details were only accurate and people were advised not to lie and deny the facts. Instead, many found a legal way around the problem.

 

2) Mr Harish says the money stashed abroad was in individual accounts, in corporate accounts and in trusts. Some were accounts of resident Indians and others were of non-resident Indians (NRIs). The Tax department chose to raid those who were residents with Geneva accounts in HSBC. Mr Kejriwal says only three were raided and all the residents he named in his list were apparently not touched. Those who were NRIs were only called for questioning.

 

3) Consider the accuracy of the list and how much the I-T department already knows. Mr Harish quotes the example of one NRI client who had been warned to give truthful answers. The officer asked if the person had accounts overseas. He said yes, as an NRI you need overseas accounts for business. He told the tax officer he had accounts in the US, UK and Geneva. When asked how much money he had in the Geneva account he said $2.5 million, at which time the officer politely corrected him and said it was in fact $2.4million—because he already had all the information from the HSBC list.

 

4) It is hard to believe that smaller accounts in the list were 100% accurate and details of the big fish were wrong!

 

5) In fact, Mr Harish, in the interactive session, advised people not to lie, because the tax authorities had all the exact details.

 

6) Clearly, contrary to Abhishek Manu Singhvi’s claims on television, the Income Tax department has full and complete information. It can act; it does not need a complaint to be filed. And since when has the I-T department waited to act only on a complaint?


7) Clearly, contrary to Abhishek Manu Singhvi’s claims on television, the Income Tax department has already started an investigation based on the list and decided to go slow with it.

 

Based on this proof here are some obvious conclusions:
 

1. Mr Kejriwal, is a former joint commissioner of Income Tax whose wife is still in the government. He will be able to pin-point exactly which units and officers were in charge of this investigation. But then, it is not Mr Kejriwal’s job to do the work of government. It is the government that needs to account to the people of India, what action has been taken on the 700 names and which few people were targeted for recovery. In fact, the tax returns of some of the big names may also yield some clues. As Kejriwal and Prashant Bhushan correctly say, it is now for the government to explain to us and to the Parliament what action was taken in each of the 700 cases.

 

2. Arvind Kejriwal is correct when he says that only a few people were selectively raided. But Mr Harish’s talk explains how and why this was done. He says that those who were resident Indians were raided. Those were Non-Resident Indians (NRIs) were only called in for questioning and many of the accounts were in the names of corporates and trusts, which, as the video reveals, dealt with the issue differently.

 

3. Mr Harish’s illuminating talk clearly shows that all the 700 accounts need not have been dubious. He also indicates that many of them found clever and ingenious ways to set things right. Others had accounts reopened to pay up the tax and escape liability. The line of questioning adopted by the tax authorities was also explained in detail. He said the key was whether income had emanated form Indian transactions and operations or overseas businesses.

 

4. The final part of Mr Harish’s talk is also very interesting. He shows how tax evasion is not unknown in the developing world and the US. Mr Harish explains in detail the US amnesty scheme which allows people to avoid prosecution by paying up a stiff penalty on a one time basis. But then, the Indian system works for tax evaders and we have had so many amnesty schemes over the 65 years of independence, that the Congress government in its previous stint at power has assured the Supreme Court that there will be no more amnesty. This is a trap that corrupt policy makers had created for themselves, while making no attempt to check the proliferation of black money.

 

Clearly, there is a lot more that the I-T department knows which it is possibly trying to bury. There is a lot that Mr Kejriwal knows which he possibly trying to keep with himself as a matter of tactics. And the Congress is plainly lying when it acts ignorant about the details of these 700 accounts.
 

To read yesterday’s coverage about Arvind Kejriwal expose, click here.
 

You may also want to read: India's silence on US tax evasion cases says it all

 

User

COMMENTS

nagesh kini

4 years ago

NRIs are legally permitted both by the FERA and FEMA to freely operate overseas bank accounts without any RBI/Regulatory approvals. Calling them even for questioning is only an eyewash. Those called are well within their rights sue for harassment, proves it is selective.

The Additional Solicitor General has rightly brought out all such malpractices in his yet to hit the stand book.

M K TYAGI

4 years ago

lesser said the better.

SuchindranathAiyerS

4 years ago

The mills of Indian Governance grind very slowly while the grist is some other mill

shivkumar

4 years ago

All efforts need to be made for getting hold of funds in Swiss bank accounts. However, why do we forget that major chunk of illegal funds is in India itself. Real Estate is a prime example. Black money is also routed into stock market operations thru foreign funds.

shivkumar

4 years ago

oo

ABHA CHAWLA MOHANTY

4 years ago

WILL THE ONUS BE ON AFFLUENT TO DENY...ELSE ,MINISTRY SHALL BE
PROACTIVE NOW?/

P M Ravindran

4 years ago

Please tell me only when any Congi tells any truth!

REPLY

M G WARRIER

In Reply to P M Ravindran 4 years ago

You want all Congis to remain silent for ever?

NSriramamurty

4 years ago

Many Thanks For Clearly telling the Whole Issue,which clearly shows that GOI is Protecting Moneyed people in India.SECRECY Tag is MisUtilised by GOI in not Putting 700 People List in IT Web ,Nor telling Presss . MOre Trasperant System is to be adopted by GOI,restricting Secrecy in Defence and External Affairs Ministries only,but not Others.Then only INDIANs can believe GOI.

sohan modak

4 years ago

In one of my earlier comments, I had mentioned how HSBC was involved in
alloqeing transfer of Rupee funds after converting these into Euros and
transferring them to a paris bank in favour of the Alliance Francaise of
Paris, a French Government organization, looting crores of Rupees from
India without transfer permits from RBI and in clear violation of FEMA. We
filed a FIR in Pune but it was managed to have the Police report as non
lieu. We have now lodged a private complaint in the court. HSBC, in India
is, thus also working to promote Hawala transaction in favour of Foreign
Governents.

A COMMON INDIAN MAN

4 years ago

THE OPTION WHICH AAM AADMI CAN USE TO CHANGE THE SIYUATION IS ONLY ONE."CHALO DILLI GHERO DILLI"MEANING PEOPLE FROM ALL OVER INDIA SHOULD JOIN ANNA AND KEJRIWAL TEAM TO CORNER ALL POLITICIANS IN PARLIAMENT TILL THEY DO NOT RESIGN AND NEW ELECTIONS WITH OPTION TO VOTERS OF "NONE FROM THESE CANDIDATES" AND "RIGHT TO RECALL" ARE IMPLEMENTED.

Sunil

4 years ago

This is a terrific piece and a clear indication of what a corrupt government and ineffective and co operative opposition has brought our country to. I do hope that the pressure being created by Kejriwal and company , will be supported by the rest of us and we bring in a change to the system.

Ashok Sood

4 years ago

It is unlikely that the opposition is not aware because if Kejriwal can access infmn oppsn can do so more easily. So far the govt has been sidelining issues and successfully burying them but, with exposes and awareness this will become more difficult. However, there is a silver lining in their concealment, the parties are compelling the aam admi to discontinue supporting them. Parties are fast loosing whatever credibility they had

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Petraeus resigns as CIA chief over extra marital affair

Petraeus devoted nearly 40 years of service to the US, rising through the ranks to become a distinguished four-star general and commander of American forces in Iraq and Afghanistan before joining the CIA as director

 
Washington: David Petraeus the director of Central Intelligence Agency (CIA) has resigned over an extra marital affair, saying his behaviour was 'unacceptable', reports PTI.
 
The top intelligence official of the US submitted his resignation to the President Barack Obama during a meeting at the White House yesterday. Obama has accepted his resignation.
 
"Today, I accepted his resignation as Director of the Central Intelligence Agency," he said in a statement.
 
Petraeus, in a letter released to the CIA work force, has disclosed his marital affair. "After being married for over 37 years, I showed extremely poor judgement by engaging in an extramarital affair. Such behaviour is unacceptable, both as a husband and as the leader of an organisation such as ours," he wrote in an email.
 
Obama said that he is completely confident that the CIA will continue to thrive and carry out its essential mission.
 
"I have the utmost confidence in Acting Director Michael Morell and the men and women of the CIA who work every day to keep our nation safe," he said while praising Petraeus on his extraordinary service.
 
"David Petraeus has provided extraordinary service to the United States for decades. By any measure, he was one of the outstanding General officers of his generation, helping our military adapt to new challenges, and leading our men and women in uniform through a remarkable period of service in Iraq and Afghanistan, where he helped our nation put those wars on a path to a responsible end," he said. 
 
The US President said that as Director of the Central Intelligence Agency, Petraeus has continued to serve with characteristic intellectual rigour, dedication, and patriotism.
 
Before joining the CIA, Petraeus successfully headed the US army operations in both Iraq and Afghanistan.
 
"Dave's decision to step down represents the loss of one of our nation’s most respected public servants. From his long, illustrious Army career to his leadership at the helm of CIA, Dave has redefined what it means to serve and sacrifice for one's country," James Clapper, Director of National Intelligence, said.
 
"Since he took over as Director in September of last year, he and I have worked together to tackle some of the most challenging issues faced by the Intelligence Community in more than a decade," he said.
 
Under his leadership, the CIA remained instrumental in providing policy makers decision advantage through the best possible intelligence, Clapper said.
 
"Whether he was in uniform leading our nation's troops in Iraq and Afghanistan, or at CIA headquarters leading the effort to generate intelligence used to keep our nation safe, Dave inspired people who had the privilege of working with him," he added.
 
Regretting the resignation of David Petraeus as director of the CIA, Senator Dianne Feinstein, chairman of the Senate Intelligence Committee, said this is an enormous loss for the nations intelligence community.
 
"Director Petraeus is an individual who has devoted nearly 40 years of service to his country, rising through the ranks to become a distinguished four-star general and commander of American forces in Iraq and Afghanistan," she said.
 
"I wish President Obama had not accepted this resignation, but I understand and respect the decision. David Petraeus is one of Americas best and brightest, and all Americans should be grateful for his service. Deputy Director Michael Morell will serve as acting director, so I am confident the agency is in very good hands until the president selects a replacement," Feinstein said.
 
Republican Senator, John McCain, said that Petraeus will stand in the ranks of America's greatest military heroes.
 
"His inspirational leadership and his genius were directly responsible after years of failure for the success of the surge in Iraq," he said.
 
Meanwhile, news reports said Petraeus extramarital affair was revealed over the course of an FBI investigation.
 
"The FBI had been investigating an unrelated and much broader case before stumbling on the affair," Fox News reported.
 
"FBI during the course of this investigation, the name of biographer Paula Broadwell came up. FBI followed that lead and in doing so, uncovered his affair with her. The FBI for some time was concerned that perhaps Petraeus was some sort of victim, but there has been no evidence discovered to back up such concerns," the news channel said.
 

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COMMENTS

ABHA CHAWLA MOHANTY

4 years ago

SOME MORALITY STILL REIGNS,,,!!!!

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