PRESS RELEASE

25 July, 2018 | New Delhi

Statement Issued by Prof. Rajeev Gowda, MP (Rajya Sabha) & Prof. Gourav Vallabh, National Media Panelist, AICC

3 months after PM Modi meets Antigua’s PM, ' ई' gets Antigua’s Passport

Modi Govt bringing ‘Fugitive Economic Offenders Bill’ as a ‘Face Saving Exercise’ as it has Failed in its Fight Against ‘Black Money’

Modi Govt deliberately omitted more glaring fact that deposits in Swiss have gone up by 23% in Q1, FY18

Modi ji promised to bring back 80 Lakh Crore of Black Money stashed in foreign banks and deposit Rs 15 Lakh in everyone’s account. BJP’s feeble fight against corruption and black money has miserably failed as after 13 Bank Loot Scams worth more than 70,000 Cr, fraudsters have run away from the country. Nirav Modi i.e Chhota Mod# 2 is globetrotting and PM Modi’s ' ई' i.e Mehul Choksi gets an Antigua Passport after visiting China, Belgium, UK, US, UAE and Hong Kong! Investigation agencies like the CBI/ED have failed to get a Red Corner Notice issued against him till today. Faced with criticism from all sides, now the Modi Govt is hurriedly trying to hide behind the ‘Fugitive Economic Offenders Bill’.

After 4 years, deposit in Swiss Banks has gone up by 50%. When cornered on these hard facts, a rattled BJP’s treasurer & Finance Minister, Shri Piyush Goyal is flashing ‘new statistics’, ‘new methodology’ and ‘newer lies’ to mislead the people.

However, Facts do cut through the fog on Modi Govt’s feeble fight against ‘Black Money:-

1. The most credible information to ascertain the deposits in Swiss Bank accounts is the data which Swiss National Bank (SNB) releases every year. Any other source of information like the Bank of International Settlements (BIS) which Shri Piyush Goyal is conveniently flashing a letter which provides a link of www.bis.org (BIS) clearly states in their disclaimer that “it does not warrant or guarantee the accuracy, completeness or fitness for purpose of any information or material on this website”.

2. In the past, whenever Shri Modi or the BJP quoted Swiss Bank data, they used to refer to SNB instead of BIS. Why are they now relying on BIS now? 3. It is important to note that BIS data does not include non-deposit liabilities like mutual funds, bonds, debentures etc of Swiss Banks towards Indian Nationals which was included in SNB Data. So primarily if all liabilities of Swiss Banks towards Indian Nationals are considered, it reflects an increasing trend. But if

we exclude them, it shows a downwards trend. Therefore the BJP is trying to disclose selective data to prove a point which is completely false.

4. Shockingly, Shri Piyush Goyal deliberately omitted to disclose a vital statistic from the same BIS database which he was quoting, yesterday- that loans and deposits (Non-Banking Claims) had increased to 3,543 Cr in Q1, 2018 from the Q4 2017 Balance of 2,889 i.e a whopping increase of 23%!

5. Congress-UPA had presented a ‘White Paper’ on Black Money whereby it tracked down 1,30,800 Cr of Black Money in its last two years of its Govt. So Modi Govt’s so called fight against ‘Black Money is nothing but ‘Headlines Management’ & ‘Fake Stories’ planted in the media, devoid of any factual backing.

6. Congress-UPA Govt had in 2011 commissioned studies to ascertain quantum of Black Money held by Indians inside the country and abroad, by Delhi-based National Institute of Public Finance and Policy (NIPFP) and National Council of Applied Economic Research (NCAER) as well as the National Institute of Financial Management (NIFM) in Faridabad. But Modi Govt has brazenly refused to divulge this amount in an RTI reply. Yesterday, when cornered on these media reports, Shri Piyush Goyal ran helter-skelter for cover and recited some ‘Jumla –Stats’ to hide his Govt’s sins.

7. On June 29, 2018- Swiss National Bank (SNB), the central banking authority of the Alpine nation, money parked by Indians in Swiss banks rose over 50% to Swiss Francs (CHF) 1.01 billion i.e 7,000 Cr in 2017. (Media Reports)At that time, both Finance Minister, Shri Piyush Goyal & ‘Minister without portfolio’, Shri Arun Jaitley had said that all the Indian money deposited in Swiss Banks cannot be treated as ‘Black Money’. Contradicting their own Ministers, @BJP4India handle on Twitter is tweeting graphics titled ‘Govt tackles Black Money in Swiss Accounts’- thus implying that these deposits are ‘BLACK MONEY’

Also in reply in the Lok Sabha dated 20th July, 2018 (Unstarred Question 535) - Modi Govt’s MoS Finance, Shri Shiv Pratap Shukla quotes the 29th June, 2018 media reports and then lists out the increase of deposits in Swiss Bank Accounts (Please See Annexure A1)

This is the same Parliamentary source, from where Congress President, Shri Rahul Gandhi quoted the increase in deposits.

8. Congress-UPA Govt signed a protocol for amending the Double Tax Avoidance Agreement (DTAA) on 28 August 2010 (https://timesofindia.indiatimes.com/business/india-business/India-Switzerland-to-sign-Double- Taxation-Avoidance-Agreement/articleshow/6447515.cms) which came into force on 7 October 2011. As per the revised DTAA, Switzerland was obliged to provide banking and other information in specific cases that relate to the period starting from 1 April 2011, with certain retrospective applications. What is the information has the Modi Govt gathered through this mechanism?

9. Shirdi Industries Ltd, of which Piyush Goyal was director, defaults on bank loans of 651.87 Cr and then gets a waiver of 65% of loan amount in Dec 2017. Shri Piyush Goyal is now famous for selling a Rs 10 share for a 1000% premium. This is a new ‘business model’ that no one in India except for Modiji and Piyush Goyal knows about. Perhaps, Shri Goyal is applying the same model to reduce Swiss Bank Deposits!

10. ICJ exposed 1214 names of Indians in Black Money Tax Havens - Panama Papers & Paradise Papers. Not a single Tax offender arrested. Modi Govt also failed to act against dubious account holders in LGT Bank in tax haven of Liechtenstein. Instead, Modi Govt brings two 'Fair & Lovely Schemes' to convert Black Money into White in June 2016 & December 2016!

QUESTIONS:- 1. What happened to PM Modi’s promise of bringing back 80 lakh Crore of ‘Black Money’ stashed aboard? 2. There are wide legal loopholes in the hurriedly brought ‘Fugitive Economic Offenders Bill’. If the constitutionally problematic sections are struck down – nothing worthwhile shall remain in the Bill – it is in no way different from existing law. Is this not just a ‘Face Saving Exercise’ after Modi Govt’s massive failure to tackle 13 Bank Loot Scams worth 70,000 Cr where at least half a dozen people have officially run away after duping banks? Where are the extradition treaties with those countries are bring these fugitives back? 3. If Black Money moves out of India it doesn't move in a direct manner (From India to Swiss), it moves via various tax heavens (Say Cayman Islands, Hong Kong etc). So in BIS data it will be reflected as a liability towards Cayman Island (British Overseas Territory). Both Nirav Modi and Mehul Choksi also went to Hong Kong, UAE etc. Why isn’t the Modi Govt not revealing those deposits? ‘Fakery’ & ‘Deception’ in ‘Statistical Jugglery’, ‘Relying on Unreliable sources’ and ‘Resorting to Mischievous & Misleading Numbers’ is the prime prerogative of the Modi Govt! GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

LOK SABHA UNSTARRED QUESTION NO. 535 TO BE ANSWERED ON FRIDAY, 20TH JULY, 2018 ASHADHA 29, 1940 (SAKA)

BLACK MONEY

535: SHRI ASADUDDIN OWAISI: SHRI SHRIRANG APPA BARNE: DR. C. GOPALAKRISHNAN: SHRI P. NAGARAJAN: SHRI ADHALRAO PATIL SHIVAJIRAO: SHRI V. ELUMALAI: SHRI SUSHIL KUMAR SINGH: SHRI R. GOPALAKRISHNAN: SHRI ANANDRAO ADSUL: SHRI TEJ PRATAP SINGH YADAV: SHRI B. SENGUTTUVAN: DR. SHRIKANT EKNATH SHINDE: SHRIMATI ANJU BALA: SHRI VINAYAK BHAURAO RAUT: SHRI DHARMENDRA YADAV:

Will the Minister of FINANCE be pleased to state: (a) whether Indian money in Swiss banks fallen by 45 per cent in 2016 and if so, the details thereof; (b) whether the money parked by Indians in Swiss banks has rose over 50 per cent during 2017 as compared to previous years and India has moved upto 73rd place in terms of money stashed abroad and if so, the details thereof along with the reaction of the Government thereto; (c) the reasons found by the Government for rising trend of deposits in Swiss bank’s especially demonetisation and whether it is on the rise, in spite of Government’s efforts to curb black money, if so, the details thereof; (d) whether the Government has any agreement with the Swiss banks to share the details of depositors and if so, the details thereof; (e) whether the Government has taken any action to reveal the names of those depositors in the previous years especially in 2017, if so, the details thereof and if not, the reasons therefor; (f) whether the Government has taken cognizance that in comparison, the total funds held by all foreign clients of Swiss banks rose only about 3 per cent to 1.46 trillion Swiss franc and if so, the reaction of the Government thereto and the other corrective measures taken by the Government against black money hoarders and in bringing back black money stashed abroad; and (g) whether it is true that not all Swiss bank money illegal and if so, the details thereof?

ANSWER MINISTER OF STATE FOR FINANCE (SHRI SHIV PRATAP SHUKLA)

(a) & (b): No such information is available with the Government. However, as per recent media reports, the deposits of Indians in Swiss bank, in the last three years are as under:

Year Deposits by Indians in Swiss Bank in CHF billion 2015 1.22 2016 0.68 2017 1.02

(c) The increase was mainly due to capital increase for a subsidiary of a Swiss company in India, increase in liabilities connected with outstanding derivative financial instruments and increase in customer deposits (consolidated at level of parent company taking into account the deposits of the branches or subsidiaries) which are linked to companies and not individuals.

(d) India and Switzerland have in place a Double Taxation Avoidance Agreement (DTAA), which entered into force on 29th December, 1994. Protocol amending the agreement came into force on 07th October, 2011. Based on the provisions of DTAA, the two countries exchange information on a request basis, which is foreseeably relevant to the administration or enforcement of the domestic laws concerning taxes covered by the agreement, which may also include details of depositors.

India and Switzerland are signatories to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC) and both countries have also signed the Multilateral Competent Authority Agreement (MCAA) pursuant to which the Automatic Exchange of Information (AEOI) is activated between the two countries for sharing of financial account information effective from 01.01.2018 with first transmission in 2019. Accordingly, India will receive the information of financial accounts held by Indian residents in Switzerland for 2018 and subsequent years, on an automatic basis.

(e) The disclosure of the information received under tax treaties is governed by the confidentiality provisions of the tax treaties. Further, the disclosure of information of foreign assets of resident tax payers collected as per “Schedule FA” of the Return of Income is protected as per the provisions of Section 138 of the Income-tax Act, 1961.

(f) The Government has taken several corrective measures against black money hoarders and in bringing back black money stashed abroad which, inter alia, includes putting in place the necessary legal arrangements for obtaining information about financial accounts of Indian residents in Switzerland annually on an automatic basis. These exchanges with Switzerland will take place from 2019 for the financial account information pertaining to the year 2018 and onwards.

Apart from the above, the Government has taken measures like:

Constitution of the Special Investigation Team (SIT) on Black Money in May, 2014 under the Chairmanship and Vice-Chairmanship of two former Judges of Hon’ble Supreme Court. Investigation into cases involving substantial black money/undisclosed income, particularly black money stashed abroad, is being extensively and intensively monitored by the SIT.

The Government enacted a comprehensive and a more stringent new law, namely, the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 that has come into force w.e.f. 01.07.2015. Inter alia, for the first time, this law has included the offence of willful attempt to evade tax etc. in relation to undisclosed foreign income/assets as a Scheduled Offence under the Prevention of Money-laundering Act, 2002 (PMLA).

(g) All the Swiss bank money may not be illegal. The reasons for the same, may inter alia, include: i) remittances through banking channel under the Liberalized Remittance Scheme (LRS) for the purposes approved by the Reserve Bank of India; ii) remittances which may be from a country outside India to a Swiss Bank account; iii) customer deposits consolidated at the level of the parent company taking into account the deposits of the branches or subsidiaries.

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