KEJRIWAL UPS THE ANTE AGAINST BLACK MONEY Against Corruption led by Arvind Kejriwal has alleged that India’s prominent business tycoons, including Mukesh Ambani, Anil Ambani, Naresh Kumar Goyal and members of the Dabur Group, amassed more than ~3,100 crore in Swiss banks through and hawala. Here is a snapshot of charges made and defences offered:

which is a Reliance Group Company, had bribes paid to politicians or bureaucrats? members when they were NRIs, and were ~2,100 crore in a Swiss bank. Response: I had gone to the Congress legally allowed to open such accounts. The Question: How did this money explain meeting and have just learnt of the amount being referred to in the media, itself? Didn’t the Registrar of Companies allegations…I feel saddened that instead of pertaining to these accounts, has been ask any question? How did the money doing something to benefit the nation, we are officially remitted from India through official lying in Swiss accounts reach there? How speaking about lowly matters. The charges are banking channels and according to applicable did the money travel to baseless and defamatory and I will take action: Fema guidelines. These amounts have been and from these Anu Tandon sent out of the declared and tax assessed accounts regularly? incomes received in India. The complete CHARGE: Naresh Goyal, details regarding the remittances have been CHARGE: one of the owners of Jet voluntarily, and according to law, filed with Yashovardhan Birla and Airways, had ~80 crore in a the , and appropriate Kokilaben Ambani had Swiss bank taxes paid as applicable. Therefore it is unfortunate that every person having a accounts, but no money Kokilaben Question: Can a non- in the account Ambani foreign bank account is being painted with resident Indian (NRI) the same brush. Question: What happened to the money? maintain an undisclosed Naresh Goyal Response: Reliance Industries Limited bank account ? CHARGE: In October 2011, a report was sent by (RIL) denies all allegations made by IAC Response: Mr Goyal received a routine Director of Investigations, Delhi, to Director against RIL and Mukesh Ambani. Neither enquiry letter from the Income Tax General of Investigations, Delhi. The report Arvind RIL nor Mukesh Ambani have or had any Department regarding a bank account at HSBC clearly stated HSBC officials were indulging in Kejriwal illegitimate account anywhere in the Geneva of M/S Tailwinds Ltd, a company based hawala and encouraging tax evasion in India. world. RIL has business interests in in the . The existence of M/s The report also said HSBC, Dubai and Geneva CHARGE: Mukesh several countries, with a turnover of Tailwinds is fully disclosed to various did not have a licence from RBI to conduct Ambani, Anil Ambani and thousands of crores of rupees. As part of their departments of the . All banking operations in India and their Kokilaben Ambani had normal business, these international questions have been satisfactorily replied to operations in India were completely illegal. money in foreign banks, subsidiaries of RIL deal with several global the Income Tax Department. There is no Question: The report was filed more than a but they met Finance banks, including HSBC. These accounts are account in the name of Naresh Goyal in the year ago. Why has no action been taken Minister Pranab Mukherjee fully compliant with all regulations and are Swiss bank, as has been alleged. He has been against HSBC, which continues operations and offered a settlement disclosed in their appropriate jurisdictions, an NRI since January, 1991. He is entitled to in India? ‘to buy peace’. They might and in India. The continued tirade of baseless have bank accounts outside India. The Response: HSBC Bank in India notes certain have just paid the tax, not allegations by IAC appear to be instigated by suggestions that unaccounted money has allegations made today. The bank cannot the penalties. vested interests. been stashed away in Swiss accounts is Anil Ambani had no bank accounts with entirely false. comment on the specific details of the Question: Penalties in an HSBC in Geneva. allegations, which relate to issues in the past. undisclosed foreign bank CHARGE: Three members of the Burman HSBC complies with the law, wherever it account amount to twice the CHARGE: Anu Tando, an MP from Unnao and family had foreign accounts, but have faced no operates, very seriously. With a new senior money handled, according Mukesh (top) her late husband, Sandeep Tandon, along with income tax scrutiny global leadership team and a new strategy in to the Income-Tax Act. Did and Anil Ambani her two sons, work for the RIL group. Anu and place since last year, HSBC continues to take the Ambanis and the others pay this? Were the Question: Were they let off because they were Sandeep Tandon had ~125 crore in Swiss banks concrete steps to strengthen compliance, risk properties of small people in that list raided powerful and someone interceded on their Question: Was this money RIL’s or the Tandons’ management and culture. and bigger and powerful people let off? behalf ? or Rahul Gandhi’s? Because Anu Tandon is in a key strategic market for HSBC. The Rahul Gandhi’s core group. What transactions Response: We wish to state that these CHARGE: Motech Software Private Limited, accounts were opened by the Burman family group remains committed to investing in and took place from these bank accounts? Were growing its operations in the country.

GOVERNMENT STEPS TO UNEARTH BLACK MONEY ESTIMATES OF BLACK MONEY STASHED ABROAD | NIPFP, NCAER and NIFM commissioned to study on unaccounted income and wealth both inside and outside HOW BIG IS AMBIT? the country. Report expected by year-end. | A chain email circulated on the internet in early 2009 claimed according to a | Directorate of Criminal Investigation (DCI) created as an attached office of the Central Board of Direct Taxes Swiss Banking Association report in 2006, bank deposits in Switzerland by (CBDT). Indian nationals was the highest at $1,456 billion. | Information from Germany and France received under DTAA has been investigated. Tax evasion of more than | Another estimate quoting a 2008 report of Global Financial Integrity (GFI) ~600 crore detected and taxes of ~200 crore have been realised. indicated Indian nationals held around $ 1.4 trillion abroad in illicit external | Prosecution proceedings launched in 17 cases pertaining to Germany’s LGT Bank accounts. Assessment assets. proceedings initiated in cases relating to HSBC accounts after receiving details from French authorities. | Indian deposits in Swiss banks (located in Switzerland) made by the Swiss | Search and seizure, surveys — In the last three financial years, the investigation wing of the CBDT has detected National Bank at the end of 2010 was 1.945 billion Swiss francs (about undisclosed income of over ~32,000 crore besides seizing undisclosed assets valued at about ~2,600 crore. ~9,295 crore). | More than 12,500 pieces of information regarding the details of asset and payments received by Indian | Swiss National Bank figures of Indians' bank deposits in Swiss banks decreased citizen in several countries have been obtained and are under different stages of processing and from ~23,373 crore in 2006 to ~9,295 crore in 2010. Note: Finance ministry raised doubts on the first two estimates in its white paper on black money and has entrusted investigation. Source: Finance ministry three think tanks – NIPFP, NCAER and NIFM – the job of providing correct estimate. Source: White Paper on Black Money