Indians Have Stashed Over USD 500 Bn Abroad: CBI

Discussion in 'Politics & Society' started by Vyom, Feb 13, 2012.

  1. Vyom

    Vyom Seeker Elite Member

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    Indians are the largest depositors in banks abroad with an estimated 500 billion US dollars (nearly Rs 24.5 lakh crore) of illegal money stashed by them in tax havens, the CBI Director said today.

    India, in particular, has suffered from the flow of illegal funds to tax havens such as Mauritius, Switzerland, Lichtenstein, British Virgin islands etc.

    "It is estimated that around 500 billion dollars of illegal money belonging to Indians is deposited in tax havens abroad. Largest depositors in Swiss Banks are also reported to be Indians," CBI Director A P Singh said speaking at the inauguration of first interpol global programme on anti-corruption and asset recovery.

    He said getting information about such illegal transactions is a time taking process as investigators have to peel each layer by sending judicial requests to the country where such deposits have been made.

    "53 per cent of the countries said to be least corrupt by the Transparency International Index are offshore tax havens, where most of the corrupt money goes. The tax havens include New Zealand which is ranked as the least corrupt country, Singapore ranked number five and Switzerland number seven," Singh said.

    He said there is a lack of political will in the leading tax haven states to part with the information because they are aware of the extent to which their economies have become "geared to this flow of illegal capitals from the poorer countries."

    The CBI Director said tracing, freezing, confiscation and repatriation of stolen assets is a legal challenge, a complex process which requires expertise and political will.

    "Managing the asset recovery investigation is complex, time consuming, costly and most importantly requires expertise and political will. There are many obstacles to asset recovery. Not only is it a specialised legal process filled with delays and uncertainty, but there are also language barriers and a lack of trust when working with other countries," Singh said.

    He said global financial markets allow money to travel faster and further making tracking the money trail in such cases even more difficult which necessitates the organisation of such global training programs as they enhance the knowledge of investigators in tracking assets created out of corrupt and criminal acts.

    Singh said criminals are using the territorial issues of investigating agencies to their advantage by spreading their crimes to at least two countries and investing in a third.

    "In some of the recent important cases being investigated by the CBI such as 2G, CWG and Madhu Koda, we find that money is taken to Dubai/Singapore/Mauritius from where it goes to Switzerland and other such tax havens.

    "For criminals all it involves is setting up of a few shell companies and then making layered transfers from account to another in a matter of hours as there are no boundaries in banking transactions," he said.

    He said the World Bank estimates the cross border flow of money from criminal activities and tax evasion is around 1.5 trillion US dollars of which 40 billion US dollars is bribe paid to government servants in developing countries.

    Singh quoted the report to say that only five billion US dollars of this money has been repatriated during 15 years.

    news.outlookindia.com | Indians Have Stashed Over USD 500 Bn Abroad: CBI
     
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  3. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    I am tired of hearing all these various estimates of money "stashed abroad". Someone says 500bn, someone says 1.6tn.... but no one brings back even one rupee. :frusty:
     
  4. Dovah

    Dovah Untermensch Senior Member

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    We'd have the rest of it in 1500 years then................
     
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  5. Vyom

    Vyom Seeker Elite Member

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    One rupee is of no use here, they need to bring back ALL. And this news is significant, since the estimation is by CBI.
     
  6. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    :doh: I didn't read the article carefully enough I guess... so, 5 billion has come back after all, contrary to what I was thinking. :yey:
     
  7. Adux

    Adux Senior Member Senior Member

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    What is the basis for this estimate? Let's also ask ourselves another question, why are Indians stashing their money aborad? Would it be different if our tax code was simplified, and our tax rate a more decent, we pay nearly 70% of our income taxes , direct and indirect combined. I am sorry, I have problems giving this government or any rather nearly 70% as taxes. That is just pure day light robbery by the government. Income tax shouldnt be above 20% for the 'job creator's', 10% for the lower income and 15% for the middle class. I am sure people would pay up their taxes and show better compliance.
     
  8. The Messiah

    The Messiah Bow Before Me! Elite Member

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    I would triple that amount...then we'd be nearer the actual amount.
     
  9. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Last edited: Feb 14, 2012
  10. Ray

    Ray The Chairman Defence Professionals Moderator

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    Well said by CBI.

    But how about getting it back?

    What is the idea of leaving it as big talk?
     
  11. JAYRAM

    JAYRAM 2 STRIKE CORPS Senior Member

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    500 billion?. Reduced 500 billion?. Lately it was 1 trillion.. where the other half gone?. I heard a rumour that Robert vadra has as much of amount in swiss banks!!.

    Some corruption scandals against Robert:


    How did Robert Vadra became the fastest Billionaire? - An explosive story on Indian corruption – Robert Vadra � Follow The Money

    Robert Vadra Son-in-law Of Sonia Gandhi Exposed - Robert Vadra Son-in-law Of Sonia Gandhi Exposed: Swiss Bank Videos

    Sonia Gandhi's Son-In-Law Robert Vadra List of Scams - Sonia Gandhi's Son-In-Law Robert Vadra List of Scams | Facebook

    Will expose Robert Vadra next: Subramanian Swamy - Will expose Robert Vadra next: Subramanian Swamy - The Times of India
     
    Last edited: Feb 14, 2012
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  12. JAYRAM

    JAYRAM 2 STRIKE CORPS Senior Member

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    A big step to a Trillionaire..?..



    Will enter politics if people want: Robert Vadra - Will enter politics if people want: Robert Vadra

    Won't hesitate if people want me in politics: Robert Vadra - Won't hesitate if people want me in politics: Robert Vadra

    Why Congress shouldn't discount Robert Vadra's political ambitions - Why Congress shouldn't discount Robert Vadra's political ambitions - Economic Times

    I will definitely contest, if the people so desire: Robert Vadra - http://economictimes.indiatimes.com...-desire-robert-vadra/articleshow/11801372.cms

    It's Rahul's turn now, Priyanka's time will come: Robert Vadra - It's Rahul's turn now, Priyanka's time will come: Robert Vadra : North News - India Today
     
  13. sob

    sob Moderator Moderator

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    So for the first time a senior Govt. official has acknowledged the fact there is a huge amount of black money stored abroad in tax heavens.

    Now is the time for the Govt. to act on this and get some serious money back to India.
     
  14. sob

    sob Moderator Moderator

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    Black Money: If King is immoral, so will be subjects, says CBI Director A P Singh - The Economic Times

     

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