Thaindian News

New Delhi, July 4 (IANS) The Supreme Court Monday set up a Special Investigation Team (SIT) to probe black money stashed by Indian citizens in foreign tax havens. The committee will be headed by former apex court judge B.P. Jeevan Reddy.

The court upgraded and converted the existing high-level committee (HLC), constituted by the central government, into the SIT that will report to it. Former apex court judge M.B. Shah will be the panel’s vice-chairman.

The apex court bench of Justice B. Sudershan Reddy and Justice S.S. Nijjar also directed the central government to disclose the names of people who hold accounts in LGT Bank in Liechtenstein — a principality in Europe bordering Switzerland and Austria — as disclosed to it by German authorities.

The judges allowed the disclosure of the names of individuals with bank accounts in Liechtenstein, with respect of whom investigations have been concluded, either partially or wholly, and to whom show cause notices have been issued and proceedings initiated.

However, the court made an exception saying that the names of people holding the accounts but not involved in any wrong acts, may not be made public.

The government-constituted high-level committee (HLC), which has now been converted into an SIT by the apex court, was headed by the secretary, department of revenue.

Its members were deputy governor of the Reserve Bank of India, directors of the Intelligence Bureau, the Enforcement Directorate and the Central Bureau of Investigation (CBI), chairman of the Central Board of Direct Taxes (CBDT), director generals of the Narcotic Control Bureau and Revenue Intelligence, director of the financial intelligence unit, and a joint secretary of CBDT.

Dwelling upon the scope of the SIT, the court said it would function under the guidance and direction of Justice Reddy and Justice Shah.

It will be responsible for investigation, initiation of proceedings and prosecution of all issues relating to the matters concerning and arising from unaccounted monies of suspected tax evader Hasan Ali Khan and Kolkata based-businessman Kashinath Tapuria.

The SIT will also carry out investigations already commenced, pending or awaiting to be initiated, with respect to any other known instances of laundering of unaccounted monies in foreign bank accounts by Indians or other entities operating in India, the court said.

Justice B. Sudershan Reddy said the SIT will be under duty to keep the court informed of all major developments by filing periodic status reports, and will follow orders this court may issue from time to time.

The case would be heard next after Aug 15.

In its lengthy order, the apex court repeatedly pulled up the central government for dragging its feet and delaying the investigation into the black money stashed abroad.

The court also mocked the central government for using double-taxation avoidance agreement with Germany for holding back the names of the money launderers who were not even “remotely” covered under the India-Germany treaty.