The central government has disclosed to the Supreme Court the names of three business people who have allegedly stashed black money abroad. Former Dabur executive Pradip Burman, Rajkot-based bullion trader Pankaj Chimanlal Lodhia and Goa miner Radha S Timblo were named by the Centre--a legal development that will turn the national focus on black money and funds allegedly stashed in tax havens aboard. Here's an explanation of the issue.
Photo: Swiss Bank. The government has written to Switzerland seeking details of Indians who have stashed away unaccounted money in the country. (Thinkstock photo)
Size of India's black economy
· There are no official estimates of India's black economy. In 2011 the government had commissioned a joint study by three think-tanks - NIPFP, NIFM and NCAER - to estimate Indian entities' unaccounted wealth both at home and abroad. The final report has not been submitted.
·India ranked fifth largest exporter of illicit money between 2002-2011, with a total of $343.04 billion, and in 2011 it was placed third when $84.93 billion was sent abroad, according to a 2013 report titled 'Illicit Financial Flows from Developing Countries: 2002-2011'.
Read: Over 1 lakh crore undisclosed income, globally 5th in illicit outflows
Other estimates
$462 billion (about Rs28.6 lakh crore): According to Global Financial Integrity (GFI), a Washington-based think-tank, Indians salted away $462 billion (about Rs. 28 lakh crore in current exchange rates) in overseas tax havens between 1948-2008.
$500 billion (about Rs. 31.4 lakh crore): Money stashed away in tax havens by Indians, according to former CBI director AP Singh
$500 billion ( Rs. 31.4 lakh crore) and $1.4 trillion ( Rs. 86.8 lakh crore): Parked in undisclosed overseas accounts, according to a BJP task force report of 2011
Rs 14,000 crore: Money held by Indians in Swiss banks as of December 2013, a jump of over 42% from 2012
Key dates in black money case
2009: Germany hands over list of Indian account holders in LGT Bank, Liechtenstein, a European principality
· Senior Lawyer Ram Jethmalani files PIL in SC seeking a direction to the government for taking action to bring back money stashed in foreign banks
2011: France hands over list of 782 Indian citizens who allegedly hold HSBC accounts in Geneva
May 27, 2014: New NDA government sets up a high-powered Special Investigative team (SIT) headed by retired Supreme Court (SC) judge MB Shah to look into the issue of black money and slush funds.
October 16, 2014: Government tells SC disclosing the names of those who have deposited money in banks abroad jeopardise tax agreements with nations providing those names to India.
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