Will reveal foreign bank account holders’ names: Govt to SC

The apex court also asked the government to ensure that Hasan Ali Khan, a Pune-based businessman, accused of stashing money in foreign banks, does not leave the country

New Delhi: The Centre today assured the Supreme Court (SC) that it would reveal the names of persons who have stashed black money in foreign banks after registering a formal case against them, reports PTI.

Solicitor General Gopal Subramanium, appearing before a bench headed by justice B Sudershan Reddy, said the government has issued show-cause notices against the persons accused of having black money in foreign banks and once a case is registered against them, their names will be made public.

The bench also asked the government to ensure that Hasan Ali Khan, a Pune-based businessman, accused of stashing money in foreign banks, does not leave the country.

"It's your duty to ensure that he is available to face prosecution," the court said when Mr Subramanium informed it that Mr Hasan is in India and the government is taking all necessary steps against him.

The court was hearing a petition filed by noted lawyer Ram Jethmalani and some former bureaucrats seeking the court's direction to the government to bring black money, said to be the tune of $1 trillion, back to the country.

Senior advocate Anil Divan appearing for Mr Jethmalani contended that the government is not taking effective steps in this direction.

Referring to an article in which it was reported that Letters Rogatory have been issued to authorities in five countries-UAE, UK, USA, Singapore and Hong Kong-seeking information regarding black money, he submitted that nothing more has been done in this regard.

Countering Mr Divan's arguments, the solicitor general accepted that Letter Rogatory has been issued and said the government has taken "remarkable" steps in the case of black money.

Placing before the court a sealed envelope, Mr Subramanium said all this information has been given in it.

At the end of the brief hearing, the bench asked whether Hasan Ali can be made a party to the proceedings before it.

The court then adjourned the matter for further hearing on 3rd March.


Centre to compensate for Rs7,000 crore CST loss to states

Of the Rs7,029 crore loss incurred by the states, the Centre will release Rs3,000 crore in 2010-11 while the balance Rs4,029 crore will be given in the next fiscal, information and broadcasting minister Ambika Soni said

New Delhi: The government today approved Rs7,029 crore compensation to states for the losses they suffered due to reduction in central sales tax (CST) rate in 2010-11, reports PTI.

The Union Cabinet, chaired by prime minister Manmohan Singh, has approved a proposal for providing CST loss related compensation to states incurred in the current financial year, information and broadcasting minister Ambika Soni told reporters after the meeting.

"The financial implication of this proposal is estimated at approximately Rs7,029 crore," Ms Soni said adding that Rs3,000 crore are likely to be released in 2010-11, while the balance of Rs 4,029 crore would be given in the next fiscal.

"An additional requirement of Rs 3,000 crore for 2010-11 has already been included in the budgetary outlay..," she added.

The Cabinet approved the "on account payment" of compensation to the states, pending finalisation of guidelines for revenue loss incurred by states in the current fiscal because of reduction in CST rates.

CST, a tax on movement of goods from one state to another, was reduced from 4% to 3% in 2007-08 and further to 2% in 2008-09 after the introduction of VAT, as it was considered distortionary.

States have estimated the loss at Rs20,000 crore this fiscal on this account and are demanding reimbursement for the same.


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