Republic of India - Demonetisation Policy for National Security

[Hindustani78]

Ministry of Corporate Affairs
5 -January, 2018 06:19 IST

Registrar of Companies removed names of 2,26,166 defunct companies in 2017

The Government has initiated campaign against black money, wilful defaulters and erring directors. There are a number of registered companies that are facing action from authorities after the demonetisation.

Prior to demonetisation, 16,08,637 number of companies stood registered. After demonetisation, the Registrars of Companies (RoCs) has identified 2.97 lakh companies during 2017-18 which were not filing their Financial Statements or Annual Returns for a continuous period of two or more financial years and, prima facie, were not conducting any business or in operation. Out of such identified companies, ROCs has removed the names of 2,26,166 companies as on 19.12.2017 from the register of companies by following the due procedure under Section 248 of the Companies Act, 2013. Further, based on information received from various banks, the Central Government has ordered investigations into the true ownership of 68 such companies u/s 216 read with Section 210(1)(c) of the Companies Act, 2013, which have deposited Rs. 25 crores or more in Bank Accounts and withdrew in an exceptional manner post demonetisation. The investigations are underway.

As of now, the Government has identified 3,09,619 directors as disqualified u/s 164(2)(a) of the Companies Act, 2013 pertaining to companies for which Financial Statements or Annual Returns have not been filed for a continuous period of three Financial Years.



This was stated by Shri P.P. Chaudhary, Minister of State for Corporate Affairs in written reply to a question in Lok Sabha today.

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Ministry of Corporate Affairs
5 -January, 2018 06:11IST

In FY 2016-17, 29,403 companies registered as LLP on all India basis

The Limited Liability Partnership Rules, 2009 have been in force since 01.04.2009. The Limited Liability Partnership Rules provide for effectuating/implementing the provisions of Limited Liability Partnership Act, 2008. The Rules, inter-alia include procedures on incorporation of an LLP, its governance framework, relations interse partners, role, functions and liabilities of designated partners, penalties for false statements, investigation of affairs of LLP, regulations for internal working/maintenance of books of accounts/audit thereof as well as for filing forms with Registrar of Companies for notifying the financial position and solvency of Limited Liability Partnership (LLP) and for conversion from firms/companies to LLPs.

The State/UT-wise number of companies converted into LLPs and the LLPs registered during last three years is given below:

State/UT-wise number of companies converted into LLP and LLPs registered during

S.No
State/UT
2014-15
2015-16
2016-17

Converted to LLP
Registered as LLP
Total

Converted to LLP
Registered as LLP
Total

Converted to LLP
Registered as LLP
Total

1
Andaman & Nicobar

0
1
1

0
1
1

0
1
1

2
Andhra Pradesh

4
151
155

2
231
233

2
295
297

3
Arunachal Pradesh

0
1
1

0
2
2

0
3
3

4
Assam

0
28
28

1
64
65

1
125
126

5
Bihar

0
96
96

1
158
159

3
251
254

6
Chandigarh

1
69
70

0
106
106

2
139
141

7
Chattisgarh

0
47
47

1
65
66

0
91
91

8
Daman and Diu

0
2
2

0
6
6

0
5
5

9
Delhi

18
1819
1837

40
3506
3546

53
4074
4127

10
Dadra & Nagar Haveli

0
5
5

1
13
14

1
6
7

11
Goa

0
37
37

0
75
75

3
113
116

12
Gujarat

15
959
974

17
1706
1723

29
2414
2443

13
Himachal Pradesh

1
12
13

3
21
24

4
48
52

14
Haryana

3
342
345

7
620
627

11
874
885

15
Jharkhand

1
46
47

2
107
109

6
149
155

16
Jammu & Kashmir

0
18
18

0
17
17

0
17
17

17
Karnataka

13
1217
1230

15
1740
1755

16
2177
2193

18
Kerala

0
403
403

3
630
633

4
761
765

19
Maharashtra

65
5256
5321

103
7446
7549

92
9769
9861

20
Meghalaya

0
2
2

0
7
7

0
6
6

21
Manipur

0
3
3

0
8
8

0
8
8

22
Madhya Pradesh

5
199
204

3
411
414

3
522
525

23
Mizoram

0
0
0

0
1
1

0
0
0

24
Nagaland

0
0
0

0
1
1

0
1
1

25
Orissa

0
45
45

0
98
98

1
111
112

26
Punjab

0
105
105

3
200
203

5
287
292

27
Pondicherry

0
5
5

0
12
12

0
15
15

28
Rajasthan

4
719
723

2
957
959

9
997
1006

29
Sikkim

0
2
2

0
2
2

0
4
4

30
Telangana

9
349
358

13
767
780

21
1172
1193

31
Tamil Nadu

11
651
662

11
833
844

13
1103
1116

32
Tripura

0
2
2

0
0
0

0
3
3

33
Uttar Pradesh

5
700
705

14
1041
1055

21
1411
1432

34
Uttarakhand

0
44
44

1
61
62

4
135
139

35
West Bengal

12
1347
1359

17
1761
1778

16
2316
2332

Grand Total

167
14682
14849

260
22674
22934

320
29403
29723



This was stated by Shri P.P. Chaudhary, Minister of State for Corporate Affairs in written reply to a question in Lok Sabha today.

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Ministry of Corporate Affairs
5 -January, 2018 06:06IST

CSR expenditure of companies for FY2015-16 is RS 13,625.25 crores

The total expenditure on Corporate Social Responsibility (CSR) for the year 2015-16, as per filings made by companies in the MCA21 registry till 31.03.2017 is Rs. 13,625.25 crores. Of this amount, Rs. 4,091 crores has been reported as spent in local areas. The latter figure does not include expenditure which has been reported in an aggregated manner on an ‘all India’ basis. The statutory audit of a Company under Chapter X of the Companies Act, 2013 covers the audit of the expenditure incurred by the Companies on CSR activities.

This was stated by Shri P.P. Chaudhary, Minister of State for Corporate Affairs in written reply to a question in Lok Sabha today.

 

[Hindustani78]

Ministry of Finance
5 -January, 2018 03:40IST

Recapitalisation of Public Sector Banks

Government announced Indradhanush plan for revamping Public Sector Banks (PSBs) in August 2015. The plan envisaged, inter alia, infusion of capital in PSBs by the Government to the tune of Rs. 70,000 crore over a period of four financial years. Government has recently announced decision to further recapitalise PSBs to the tune of Rs. 2,11,000 crore, through recapitalisation bonds of Rs. 1,35,000 crore and budgetary provision of Rs. 18,139 crore (the residual amount under Indradhanush plan) over two financial years, and the balance through capital raising by banks from the market. Government has so far infused capital of Rs. 59,435 crore in PSBs under Indradhanush.

Capital infusion is aimed at supplementing the achievement of regulatory capital norms by PSBs through their own efforts and, in addition, based on performance and potential, augmenting their growth capital. Government has announced that a differentiated approach would be followed, based on the strength of each bank.

Under the State Bank of India Act, 1955 and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980, the Board of Directors of the bank is responsible for general superintendence, direction and management of the affairs and business of the bank. Further, Companies Act, 2013 provides that the directors of a company shall act in good faith and in the best interests of the company, its employees and the shareholders. Under the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) has the power to remove managerial and other persons from office for, inter alia, securing proper management of any banking company.


This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Lok Sabha today.



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Ministry of Finance
5 -January, 2018 03:38IST


Aadhaar seeding with bank accounts

As per notifications dated 1.6.2017 and 13.12.2017 by Department of Revenue, amendments have been effected to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 to provide that account-holders eligible to be enrolled for Aadhaar, shall inter alia submit their Aadhaar number to banks, by 31.3.2018 or six months from the date of commencement of account-based relationship by the account-holder whichever is later, for the purpose of Client Due Diligence.


Department of Revenue (DoR) has informed that the objectives of Aadhaar seeding with bank accounts is to weed out bogus, fictitious and benami accounts used for money laundering, terror funding or avoiding taxes and to ensure reduction in leakages of Government spending. For the beneficiaries, Aadhaar has emerged as powerful instrument to establish their identity anywhere at any time, receive entitlements and exercise their rights.


The said rules further provide inter alia that an individual eligible to be enrolled for an Aadhaar number shall, at the time of commencement of an account based relationship, submit the Aadhaar number and, where Aadhaar number has not been assigned, furnish proof of enrolment for Aadhaar.


This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Lok Sabha today.





*****

 

[Hindustani78]

Ministry of Finance
07-January, 2018 03:19IST


Why Electoral Bonds are Necessary

Following is the text of the Article written by the Union Finance Minister, Shri Arun Jaitley on Necessity of Electoral Bonds:

"India is the largest democracy in the world. However, despite strengthening various institutions for the last seven decades, India has not been able to evolve a transparent political funding system. Elections and political parties are a fundamental feature of Parliamentary democracy. Elections cost money. The round the year functioning of the political parties involves a large expenditure. Parties run offices throughout the country. Staff salaries, travelling expenses, establishment cost are regular expenditures of political parties. There has not been a single year where election either for the Parliament or State Assemblies have not been held. Besides expenditure of individual candidates, political parties have to spend money on election campaigns, publicity, tours, travels and election related establishments. These expenditures run into hundreds of crores. Yet there has not been a transparent funding mechanism of the political system.

The conventional system of political funding is to rely on donations. These donations, big or small, come from a range of sources from political workers, sympathisers, small business people and even large industrialists. The conventional practice of funding the political system was to take donations in cash and undertake these expenditures in cash. The sources are anonymous or pseudonymous. The quantum of money was never disclosed. The present system ensures unclean money coming from unidentifiable sources. It is a wholly non-transparent system. Most political groups seem fairly satisfied with the present arrangement and would not mind this status-quo to continue. The effort, therefore, is to run down any alternative system which is devised to cleanse up the political funding mechanism.

A major step was taken during the first NDA Government led by Shri Atal Bihari Vajpayee. The Income Tax Act was amended to include a provision that donations made to political parties would be treated as expenditure and would thus give a tax advantage to the donor. If the political party disclosed its donations in a prescribed manner, it would also not be liable to pay any tax. A political party was expected to file its returns both with the income-tax authorities and Election Commission. It was hoped that donors would increasingly start donating money by cheque. Some donors did start following this practise but most of them were reluctant to disclose the details of the quantum of donation given to a political party. This was because they feared consequences visiting them from political opponents. The law was further amended during the UPA Government to provide for “pass through” electoral trust so that the donors would park their money with the electoral trusts which in turn would distribute the same to various political parties. Both these reforms taken together resulted in only a small fraction of the donations coming in form of cheques.

In order to make a serious effort to carry forward this reform process, I had announced in my Budget Speech for the year 2017-18 that the existing system would be substantially widened and donations of clean money could be made to political parties in several ways. A donor could enjoy a tax deduction by donating in cheque. Donors were also free to donate moneys online to political parties. A cash donation to a political party could not exceed an amount of Rs.2000/-. In addition, a scheme of electoral bonds was announced to enable clean money and substantial transparency being brought into the system of political funding.

I do believe that donations made online or through cheques remain an ideal method of donating to political parties. However, these have not become very popular in India since they involve disclosure of donor’s identity. However, the electoral bond scheme, which I placed before the Parliament a few days ago, envisages total clean money and substantial transparency coming into the system of political funding. A donor can purchase electoral bonds from a specified bank only by a banking instrument. He would have to disclose in his accounts the amount of political bonds that he has purchased. The life of the bond would be only 15 days. A bond can only be encashed in a pre-declared account of a political party. Every political party in its returns will have to disclose the amount of donations it has received through electoral bonds to the Election Commission. The entire transactions would be through banking instruments. As against a total non-transparency in the present system of cash donations where the donor, the donee, the quantum of donations and the nature of expenditure are all undisclosed, some element of transparency would be introduced in as much as all donors declare in their accounts the amount of bonds that they have purchased and all parties declare the quantum of bonds that they have received. How much each donor has distributed to a political party would be known only to the donor. This is necessary because once this disclosure is made, past experience has shown, donors would not find the scheme attractive and would go back to the less-desirable option of donating by cash. In fact the choice has now to be consciously made between the existing system of substantial cash donations which involves total unclean money and is non-transparent and the new scheme which gives the option to the donors to donate through entirely a transparent method of cheque, online transaction or through electoral bonds. While all three methods involve clean money, the first two are totally transparent and the electoral bonds scheme is a substantial improvement in transparency over the present system of no-transparency.

The Government is willing to consider all suggestions to further strengthen the cleansing of political funding in India. It has to be borne in mind that impractical suggestions will not improve the cash denominated system. They would only consolidate it."

**********

http://www.thehindu.com/news/nation...run-jaitley/article22391042.ece?homepage=true

The electoral bonds are being pitched as an alternative to cash donations made to political parties.

The electoral bonds mechanism is a substantial improvement in transparency over the present system and the government is open to suggestions to further cleanse political funding, Finance Minister Arun Jaitley said on Sunday.

In a Facebook post, Mr. Jaitley said the conventional practice of funding the political system was to take donations as well as undertake expenditures in cash.

The sources are anonymous or pseudonymous. The quantum of money was never disclosed and the system ensures unclean money coming from unidentifiable sources.

“It is a wholly non-transparent system. Most political groups seem fairly satisfied with the present arrangement and would not mind this status-quo to continue.

“The effort, therefore, is to run down any alternative system which is devised to cleanse up the political funding mechanism,” Mr. Jaitley said.

The Finance Minister last week announced the contours of the electoral bonds, which will be sold by country’s latest lender State Bank of India (SBI) and will have a tenure of just 15 days.

The bonds are being pitched as an alternative to cash donations made to political parties

Mr. Jaitley said the choice has now to be “consciously” made between the existing system of substantial cash donations involving unclean money and other transparent options like cheque, online transactions or electoral bonds.

“While all three methods involve clean money, the first two are totally transparent and the electoral bonds scheme is a substantial improvement in transparency over the present system of no-transparency,” he said.

“The government is willing to consider all suggestions to further strengthen the cleansing of political funding in India. It has to be borne in mind that impractical suggestions will not improve the cash denominated system. They would only consolidate it,” Mr. Jaitley wrote.

He said India, despite being the largest democracy in the world, has not been able to evolve a transparent political funding system in the last seven decades.

“The round the year functioning of the political parties involves a large expenditure... These expenditures run into hundreds of crores. Yet there has not been a transparent funding mechanism of the political system,” he said.

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http://www.thehindu.com/news/nation...a-amit-shah/article22391183.ece?homepage=true

BJP president Amit Shah launched a scathing attack on CPI(M) and Left front government in Tripura over alleged menace of corruption and lawlessness in the State. He threatened to act tough against Left
leaders allegedly involved in chit fund scams and corrupt practices after "installation" of BJP government in Assembly elections slated for next month.

“The scamsters will end up in Agartala central jail”, Mr Shah said in two big election rallies in Tripura on Sunday. He was accompanied by party’s northeast in-charge Ram Madhav, poll in-charge and Assam Minister Himanta Biswa Sarma and senior State leaders at the rally in Kulai of northern Tripura followed by another at Udaipur in the southern Tripura.

Mr. Shah asserted that BJP’s call for ‘Paribartan’ (change) is not directed at replacing with a new set of ministers, but essentially to change lives of people of the state. “8 lakhs youths of 37 lakh people in the state are unemployed… this is shame, disgusting”, he charged CPI(M)-led left front government.

The big attendance in both the rallies seemed to have encouraged Mr. Shah to say that “now I am confident that BJP will come to power in the state.” He however appealed to party activists and supporters to work hard and spread message on need to change government in Tripura to ensure a massive victory for the party.

Mr. Shah skipped speaking anything on possible electoral alliance with tribal parties, especially avoided controversy over Prime Minister’s meeting with a delegation of IPFT, which is demanding a separate tribal State by curbing out areas under the tribal autonomous district council. The IPFT so far not received support from any other party on issue of separate state or Tipraland.

Understanding importance of votes of state government employees, he assured them of central pay package after installation of BJP government in Tripura. “This (pay scale at per central government)
would be implemented in the first cabinet meeting of our government”, he assured.

Mr. Shah later spoke on 'Challenges in nation building’ at a discussion in Agartala. He also flagged off campaign vehicles of BJP at State office.

 

[Hindustani78]

Ministry of Corporate Affairs
8 -January, 2018 11:20 IST

The Central Government notifies the Companies (Amendment) Act, 2017

The Central Government notified the Companies (Amendment) Act, 2017 (Amendment Act) on 3rd January, 2018. The provisions of this Amendment Act shall come into force on the date or dates as the Central Government may appoint by notification(s) in the Official Gazette. A few provisions in the Amendment Act have important bearing on the working of the Insolvency and Bankruptcy Code, 2016 (Code).

Section 53 of the Companies Act, 2013 prohibited issuance of shares at a discount. The Amendment Act now allows companies to issue shares at a discount to its creditors when its debt is converted into shares in pursuance of any statutory resolution plan such as resolution plan under the Code or debt restructuring scheme.

Section 197 of the Companies Act, 2013 required approval of the company in a general meeting for payment of managerial remuneration in excess of 11 percent of the net profits. The Amendment Act now requires that where a company has defaulted in payment of dues to any bank or public financial institution or non-convertible debenture holders or any other secured creditor, the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders or other secured creditor, as the case may be, for such payment of managerial remuneration shall be obtained by the company before obtaining the approval in the general meeting.

Section 247 of the Companies Act, 2013 prohibited a registered valuer from undertaking valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time during or after the valuation of assets. The Amendment Act now prohibits a registered valuer from undertaking valuation of any asset in which he has direct or indirect interest or becomes so interested at any time during three years prior to his appointment as valuer or three years after valuation of assets was conducted by him.

The Companies (Amendment) Act, 2017 is available www.ibbi.gov.in and www.mca.gov.in.


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[Hindustani78]

http://www.tribuneindia.com/news/na...e-ed-attaches-rs-472-crore-assets/525435.html

New Delhi, January 8 The Enforcement Directorate on Monday said it had attached assets worth Rs 472 crore, including one in Australia, in connection with its money laundering probe in the PACL ponzi scam case.

The ED had registered a criminal case against the firm in 2015 based on a CBI FIR against the group, its directors and officials.

“Properties worth Rs 472 crore have been attached under the Prevention of Money Laundering Act (PMLA) in PACL ponzi scam operated by Nirmal Singh Bhangoo. The properties include MiiResorts Group 1 Pty Ltd and Sanctuary Cove properties in Australia,” it said.

PACL is being probed by multiple agencies.

Earlier, capital markets regulator SEBI had found it to have collected money from crores of investors allegedly through unauthorised collective investment schemes, also called ponzi schemes, in the name of real estate projects. PTI

 

[Hindustani78]

Ministry of Finance
9 -January, 2018 11:31 IST

Direct Tax Collections for F.Y. 2017-2018 show Growth of 18.2% up to December, 2017

The provisional figures of Direct Tax collections up to December, 2017 show that net collections are at Rs. 6.56 lakh crore which is 18.2% higher than the net collections for the corresponding period of last year. The net Direct Tax collections represent 67% of the total Budget Estimates of Direct Taxes for Financial Year (F.Y.) 2017-18 (Rs. 9.8 lakh crore). Gross collections (before adjusting for refunds) have increased by 12.6% to Rs. 7.68 lakh crore during April to December, 2017. Refunds amounting to Rs.1.12 lakh crorehave been issued during April to December, 2017.

An amount of Rs. 3.18 lakh crore has been received as Advance Tax up to December, 2017 reflecting a growth of 12.7% over the Advance Tax payments of the corresponding period of last year. The growth in Corporate Income Tax (CIT)Advance Tax is 10.9% and that in Personal Income Tax (PIT)Advance Tax is 21.6%.

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Ministry of Finance
9 -January, 2018 10:13 IST

Auction for Sale (Re-issue) Government Stocks

Government of India has announced the Sale (re-issue) of (i) “Government of India Floating Rate Bonds 2024” for a notified amount of Rs. 3000 crore (nominal) through price based auction, (ii) “6.68 per cent Government Stock, 2031” for a notified amount of Rs. 8,000 crore (nominal) through price based auction, (iii) “6.57 per cent Government Stock, 2033” for a notified amount of Rs. 2,000 crore (nominal) through price based auction, and (iv) “6.62 per cent Government Stock, 2051” for a notified amount of Rs. 2,000 crore (nominal) through price based auction. Subject to the limit of Rs. 15,000 crore, being total notified amount, GoI will have the option to retain additional subscription up to Rs. 1,000 crore each against any one or more of the above securities. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on January 12, 2018 (Friday).

Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 12, 2018. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

The result of the auctions will be announced on January 12, 2018 (Friday) and payment by successful bidders will be on January 15, 2018 (Monday).

The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.



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NITI Aayog
9 -January, 2018 15:45 IST

Prime Minister to interact with leading economists and Sectoral experts

Prime Minister Shri Narendra Modi will interact with leading economistsand the experts across sectors from all over the countryatNITI Aayog tomorrow. The select group of economists and sector experts have been invited by NITI Aayog for the deliberations with the Prime Minister on 'Economic Policy: The Road Ahead'. The discussion will focus on six broad themes: Macroeconomic Balances, Agriculture and Rural Development, Urban Development, Infrastructure and Connectivity, Employment, Manufacturing and Exports and Health and Education.

Finance Minister Shri Arun Jaitley, Road Transport, Highways, Shipping and Ganga Water Rejuvenation Minister Shri Nitin Gadkari, Agriculture Minister Shri Radha Mohan Singh, Minister of State- Planning Rao Inderjit Singh along with the Vice Chairman, NITI Aayog, members and CEO NITI Aayog and Senior officials from the Government will attend the meeting.

The emphasis is on sharing the views of the experts from all over the country on the road ahead for the economic policy to steer the nation towards a New India envisioned by the Prime Minister.

*****

 

[Hindustani78]

Bengaluru, January 09, 2018 17:44 IST
Updated: January 09, 2018 17:46 IST

http://www.thehindu.com/news/cities...acked-paper/article22405117.ece?homepage=true

Aadhaar, an identity number issued to all Indians based on their biometric and demographic data, faces a potential threat from cyber criminals which can cripple the economy, according to a white paper done by the Institute for Development and Research in Banking, which is affiliated to the Reserve Bank of India.

“Thanks to Aadhaar, for the first time in the history of India, there is now a readily available single target for cyber criminals as well as India’s external enemies,” a October white paper authored by Dr. S. Ananth, adjunct faculty of the institute stated.

“In a few years, attacking UIDAI data can potentially cripple Indian businesses and administration in ways that were inconceivable a few years ago. The loss to the economy and citizens in case of such an attack is bound to be incalculable.”

India created the Unique Identification Authority of India (UIDAI), a statutory authority under the previsions of the Aadhaar Act, 2016, in July of the same year. It works under the Ministry of Electronics and Information Technology. The UIDAI has so far issued more than 111 crore Aadhaar numbers to Indians, according to a posting on its website.

Aadhaar faces a number of challenges over the short and long-term, according to Dr. Ananth.

“The primary challenge is to protect the data from prying and profit seeking excess of the business world. The problem is compounded because they have to satisfy their shareholders in a competitive business environment that rarely looks beyond the quarterly profits and the operational dynamics of stock market listing.

“A more worrisome aspect is that Aadhaar is increasingly becoming the pivot for the operation of various economic and administrative activities. In an era when cyber threats are frequent, the major challenge for UIDAI is to protect the data under its control since the biometrics is now an important national asset which has huge ramifications for various government programmes and the banking system.”

Other than that there is the issue of privacy. “The problem is now compounded with the linkage of bank account, driving license, phone number and a host of other services to Aadhaar. It means that the Aadhaar number will be available in databases of each and every service provider. Hence, any breach of the database of one provider has the potential to compromise the details of the Aadhaar numbers.”

A more serious privacy concern, Dr. Ananth wrote, was that UIDAI promises to archive the data for five years.

“Since UIDAI’s vision has no qualms about allowing private service providers, Indian and foreign, to participate in developing an ecosystem related to it, one wonders how security of data of companies that are essentially foreign in nature and those that have little legal and economic exposure or interest other than profit in India, can be ensured,” he wrote.

The paper called for caution in the manner in which Aadhaar was being used by the Government, especially as more programmes and economic activities were linked to it. “Only time will tell if the benefits outweigh the costs or vice versa.”

 

[Hindustani78]

Posted at: Jan 10, 2018, 1:38 AM; last updated: Jan 10, 2018, 2:08 AM (IST)
Jet staffer held with $4.8 lakh hawala money; she’s part of global racket: DRI

http://www.tribuneindia.com/news/na...y-she-s-part-of-global-racket-dri/526252.html


A woman flight attendant of Jet Airways has been arrested by the Directorate of Revenue Intelligence (DRI) for allegedly trying to smuggle out forex worth more than Rs 3 crore, with the agency today saying the accused was part of a major global hawala syndicate.

The DRI officials intercepted the woman when she was on a flight to Hong Kong yesterday, the agency said in a statement.

“During examination of her checked in and hand baggage, $4,80,200 wrapped in aluminium foil, having a market value of Rs 3.25 crore, has been recovered,” it said.

During interrogation, it came to light that the woman was a carrier of a major international hawala syndicate and has carried foreign currencies many times for a Delhi-based hawala operator, it said.

The operator, identified as Amit Malhotra, is a resident of Vivek Vihar area in Delhi, a senior DRI official said. He said Malhotra used crew members for smuggling forex. Malhotra had befriended the Jet Airways crew six months ago during a flight to India, he said. The DRI suspected the role of some other crew members of Jet Airways in smuggling out forex, the official said.

“Malhotra has been illegally smuggling forex for the past over a year. There are some other crew members involved in the case,” he said. Both Malhotra and the Jet Airways crew member have been arrested, the official said. A Delhi court sent the two to two-day judicial custody. The DRI has recovered Rs 3.3 lakh in cash, and foreign currencies of different countries worth USD 2,500, besides several incriminating materials from Malhtora, he said. — PTI

• The seized $4,80,200 (about Rs 3.25 crore) was reportedly meant for buying gold abroad
• The gold was then to be sent to India in an illegal manner
• Currency was collected by hawala operator from some bullion dealers in Delhi

 

[Hindustani78]

Ministry of Finance
11-January, 2018 12:54 IST

Income Tax Department steps-up actions under Prohibition of Benami Property Transactions Act : Benami properties of more than Rs. 3,500 crore in more than 900 cases attached

Due to intensive efforts undertaken by the Income Tax Department, provisional attachment has been made in more than 900 cases of properties under the Prohibition of Benami Property Transactions Act (the ‘Benami Act’), which came into force w.e.f 1st November, 2016. These attachments include plots of land, flats, shops, jewellery, vehicles, deposits in bank accounts, fixed deposits etc. The value of properties under attachment is more than Rs. 3,500 crore including immovable properties of more than Rs. 2,900 crore.

In five cases, the provisional attachments of Benami properties, amounting to more than Rs. 150 crore have been confirmed by the Adjudicating Authority. In one such case, it was established that a Real Estate Company had acquired about 50 acres of land, valued at more than Rs.110 crore, using the names of certain persons of no means as benamidars. This was corroborated from the sellers of the land as well as the brokers involved. In another case, post demonetization, two assessees were found depositing demonetized currency into multiple bank accounts in the names of their employees, associates etc. to be ultimately remitted to their bank accounts. The total amount attempted to be remitted to the beneficial owners was about Rs. 39 crore. In yet another case, a cash amount of Rs. 1.11 crore was intercepted from a vehicle with a person who denied the ownership of this cash. Subsequently, no one claimed ownership of this cash and it was held to be benami property by the Adjudicating Authority.

Earlier, the Income Tax Department had stepped-up actions under the Prohibition of Benami Property Transactions Act (the ‘Benami Act’. The Act provides for provisional attachment and subsequent confiscation of benami properties, whether movable or immovable. It also allows for prosecution of the beneficial owner, the benamidar and the abettor to benami transactions, which may result in rigorous imprisonment up to 7 years and fine upto 25% of fair market value of the property.

The Department had set-up 24 dedicated Benami Prohibition Units (BPUs) under its Investigation Directorates all over India in May, 2017 to ensure swift action in respect of Benami properties.

The Department is committed to continue its concerted drive against black money and action against Benami transactions will continue to be intensified.


*****

 

[Hindustani78]

Ministry of Finance
12-January, 2018 14:09 IST

Sharp increase in prosecutions of tax evaders by Income Tax Department

The Income Tax Department has accorded the highest priority to tackle the menace of black money. With this objective in mind, the Department has initiated criminal prosecution proceedings in a large number of cases of tax offenders and evaders.

Prosecutions have been initiated for various offences including wilful attempt to evade tax or payment of any tax; wilful failure in filing returns of income; false statement in verification and failure to deposit the tax deducted/collected at source or inordinate delay in doing so, among other defaults.

During FY 2017-18(upto the end of November, 2017), the Department filed Prosecution complaints for various offences in 2225 cases compared to 784 for the corresponding period in the immediately preceding year, marking an increase of 184%. The number of complaints compounded by the Department during the current FY (upto the end of November, 2017) stands at 1052 as against 575 in the corresponding period of the immediately preceding year, registering a rise of 83%. Compounding of offences is done when the defaulter admits to its offence and pays the compounding fee as per stipulated conditions.

Due to the decisive and focused action taken by the Department against tax evaders, the number of defaulters convicted by the courts has also registered a sharp increase during the current fiscal. 48 persons were convicted for various offences during the current year(upto the end of November, 2017) as compared to 13 convictions for the corresponding period in the immediately preceding year, marking an increase of 269%.

A few illustrative cases are highlighted.

1. A Dehradun Court convicted one defaulter for holding undisclosed foreign bank account and sentenced him to two years of imprisonment for wilful attempt to evade tax and to two years for false statement in verification alongwith monetary penalty for each default respectively.
2. The Court of CJM, Jalandhar convicted a cloth trader with 2 years rigorous imprisonment for trying to cheat the Department by fabricating affidavits and gift deeds, in connivance with his advocate and witness, with the motive of evading tax. The Court, while awarding the sentence to the trader, also simultaneously awarded one year's imprisonment to the advocate notarizing the forged affidavit and also to the witness for aiding and abetting the serious offence.
3. In Bengaluru, the MD of a company engaged in infrastructure projects was found guilty of non-deposit of TDS of over Rs. 60 lakh(within the prescribed time), and was sentenced to rigorous imprisonment of three months alongwith imposition of fine. Similarly, a Mohali resident was held guilty of non-deposit of TDS within prescribed time and sentenced to one year jail alongwith fine.
4. In another case of Hyderabad, the Director of an infrastructure company was sentenced to rigorous imprisonment of six months and fine for wilful attempt to evade tax. She was simultaneously sentenced to rigorous imprisonment for six months alongwith fine for false statement in verification.
5. The Economic Offences Court at Ernakulam sentenced an individual to rigorous imprisonment of three months for selling property to evade payment of taxes of about Rs. 76 lakh despite issuance of the tax recovery certificate by the Tax Recovery Officer.
6. In yet another case reported from Agra, the Special CJM convicted one defaulter with imprisonment of one year & six months for wilful attempt to evade tax and for false statement in verification respectively alongwith fine.

The Income Tax Department is committed to carry forward the drive against tax evasion and action against tax evaders will continue in all earnest in the remaining part of the current Financial Year.



*****

 

[Hindustani78]

http://www.thehindu.com/news/nation...y-of-errors/article22435963.ece?homepage=true
New Delhi, January 13, 2018 15:14 IST
Updated: January 13, 2018 15:21 IST

Former Finance Minister P. Chidambaram arrives to address the media after the raid by the Enforcement Directorate at his residence in Jor Bagh, New Delhi on Saturday. The raids were conducted in connection with its money laundering probe in the Aircel-Maxis case. | Photo Credit: V. Sudershan


Officials found nothing, claims the former Finance Minister

Former Finance Minister P. Chidambaram on Saturday termed the Enforcement Directorate (ED) raids against his son Karti Chidambaram “a comedy of errors” and claimed the officers were left “embarrassed” and “apologetic” as they could not find anything.

He was reacting after the ED conducted searches at multiple premises linked to Mr. Karti, the senior Congress leader’s son, in connection with its money laundering probe in the Aircel-Maxis case.

“They have searched premises in Chennai again, but in a comedy of errors they came to search my premises in Jor Bagh,” Mr. Chidambaram said.

“Officers told me that they believed that Karti was an occupant of the house. I told them he is a resident of Chennai and I am the occupant of this house,” he added.

“Since they had the search warrant, I did not raise any objections to the search, but I said I will record my protest that there is no FIR in respect of the scheduled crime registered by any investigating agency, including the CBI.

“There are obviously no proceeds of crime and the ED has no jurisdiction under the Prevention of Money Laundering Act [PMLA],” he added.

The former Finance Minister said that the ED officials searched the place “including the kitchen and the bathroom and obviously they found nothing. They were embarrassed and apologetic that they found me as the occupant, but they had no option but to complete the search.”

“Since they had to justify the search, they took some background papers related to a statement made by the government in Parliament in 2012-13. In Chennai also they found nothing, seized nothing,” he claimed.

Mr. Chidambaram also made a tongue and cheek remark, saying “I will compliment them [investigating agencies] if they are able to find anything [objectionable] in raids in future.”

The Central probe agency had, on December 1 2017, conducted similar searches on the premises of a relative of Mr. Karti and others in this case.

The ED case pertains to the Foreign Investment Promotion Board (FIPB) approval granted in 2006 by Mr. Chidambaram, the then Finance Minister.

***********

A file picture of former Union Minister P. Chidambaram’s son Karti Chidambaram. | Photo Credit: Reuters

http://www.thehindu.com/news/nation...lhi-chennai/article22435236.ece?homepage=true

The agency had said it is investigating “the circumstances of the said FIPB approval granted by the then Finance Minister [P. Chidambaram].”

The Enforcement Directorate (ED) on Saturday conducted searches at multiple premises linked to Karti Chidambaram, the son of Congress leader P. Chidambaram, in connection with its money laundering probe in the Aircel-Maxis case.

Official sources said the raids are being conducted in Delhi and Chennai since early Saturday morning.

The Central probe agency, on December 1 2017, had conducted similar searches on the premises of a relative of Mr. Karti and others in this case.

The ED case pertains to the Foreign Investment Promotion Board (FIPB) approval granted in 2006 by the then Finance Minister P. Chidambaram.

'Comedy of errors'
Mr. Chidambaram termed the ED raids against his son “a comedy of errors” and claimed the officers were left “embarrassed” and “apologetic” as they could not find anything.

“They have searched premises in Chennai again, but in a comedy of errors they came to search my premises in Jorbagh,” Mr. Chidambaram said.

“Officers told me that they believed that Karti was an occupant of the house. I told them he is a resident of Chennai and I am the occupant of this house,” he added.

PMLA
The agency had said it is investigating “the circumstances of the said FIPB approval granted by the then Finance Minister [P. Chidambaram].”

The ED also alleged that Mr. Karti has “disposed” of a property in Gurgaon, which he had allegedly rented out to a multinational company “to whom foreign direct investment [FDI] approval had been granted in 2013.”

It charged that Mr. Karti had “also closed certain bank accounts and attempted to close other bank accounts in order to frustrate the process of attachment” under the Prevention of Money Laundering Act (PMLA).

The agency said the FIPB approval in the Aircel-Maxis FDI case was granted in March, 2006, by the then Finance Minister even though he was competent to accord approval on project proposals only up to ₹600 crore and beyond that it required the approval of the Cabinet Committee on Economic Affairs (CCEA).

“In the instant case, the approval for FDI of $800 million [over ₹3,500 crore] was sought. Hence, the CCEA was competent to grant approval.

“However, approval was not obtained from the CCEA,” it alleged.

 

[Hindustani78]

INX Media case: ED searches Karti’s premises in Delhi, Chennai; P Chidambaram says they found nothing

The agency had on Thursday issued fresh summons to senior Congress leader P Chidambaram's son for January 16 after he skipped his appearance before it in connection with the money laundering case.

By: Express Web Desk | New Delhi | Updated: January 13, 2018 2:54 pm

http://indianexpress.com/article/in...hidambaram-premises-in-delhi-chennai-5022554/

The Enforcement Directorate (ED) on Saturday conducted searches at Karti Chidambaram’s premises in New Delhi and Chennai in connection with the INX Media money laundering case. The agency had on Thursday issued fresh summons to senior Congress leader P Chidambaram’s son for January 16 after he skipped his appearance before it in connection with the money laundering case. In May last year, the ED had registered a case under the Prevention of Money Laundering Act against Karti and others.

The Chidambarams have, however, denied all the charges made against them.

Meanwhile, P Chidamabaram told ANI today: “There is no FIR concerning a scheduled crime by CBI or any agency. I anticipated they’ll search premises in Chennai again but in a comedy of errors they came to Jor Bagh (in Delhi) & officers told me that they thought Karti is an occupant of this house but he is not.”

“They (ED officials) searched & found nothing but since they had to justify themselves they took papers of a statement made by govt in the Parliament, few years back. The ED has no jurisdiction to investigate under PMLA,” ANI quoted Chidambaram as saying.

Congress spokesperson Randeep Surjewala today said he wasn’t surprised by the malicious vendetta being unleashed against senior Congress leaders including P Chidambaram and his son. In a statement to ANI, Surjewala said: “Everyday PM Modi and his government use ED and CBI as captive puppets to seek revenge from the opposition.”

The INX Media money laundering case pertains to the Foreign Investment Promotion Board (FIPB) approval granted in 2006 by the then finance minister P Chidambaram.

It had lodged an Enforcement Case Information Report against the accused named in the CBI complaint which included Karti, INX media and its directors, Peter and Indrani Mukerjea, among others. The agency has alleged that Karti Chidambaram received money from INX Media for using his influence to manipulate a tax probe against it in a case of violation of Foreign Investment Promotion Board (FIPB) conditions to receive investment from Mauritius. The CBI has said it has also recovered vouchers of Rs 10 lakh which were allegedly paid for the services. They were charged of criminal conspiracy, receiving illegal gratification, cheating, influencing public servants and criminal misconduct. Also Read: Karti Chidambaram gets fresh ED summons in money laundering case

These vouchers were issued in favour of Advantage Strategic Consulting (P) Limited, a firm “indirectly” owned by Karti Chidambaram, the CBI had alleged. Former finance minister P Chidambaram, after the CBI searches on May 16, had issued a strong statement in response to the raids, saying the government was using the CBI and other agencies to target his son. The FIPB approval was granted in “hundreds of cases”, the senior Congress leader had said.

 

[Hindustani78]

http://www.tribuneindia.com/news/na...-bullion-from-illegal-delhi-vault/527981.html

New Delhi, January 13 A total of Rs 85.2 crore in cash, bullion and jewellery have been seized by the Income Tax Department after it searched a private vault in Delhi as part of its anti-black money drive.

A fresh seizure of over Rs 23 crore in gold jewellery, biscuits, precious stones and cash was made on Friday by the sleuths of the investigation wing from the vault, official sources said.

Assets worth more than Rs 61 crore were seized by the department over the week from multiple lockers located in the private vault in the South Extension area of Delhi.

Sources privy to the operation said that out of the total Rs 85.2 crore stash seized, Rs 8 crore is in cash (mostly Rs 2,000 notes) while the rest is bullion, jewellery, diamonds and other precious stones.

The assets allegedly belong to some high networth (HNIs) individuals from Delhi like a builder, a gutkha trader and some businessmen based in the national capital.

They said the department had initiated proceedings for tax evasion and under the benami assets law against the illegal vault holders.

“The case pertains to black money detected post demonetisation and some others being probed under the new anti-benami law.

“The lockers have been opened now and unaccounted assets seized,” a senior official said.

The assessees did not allegedly declare these assets to the taxman and concealed them in these vaults.

Private lockers or vaults that operate like normal bank lockers are illegal and not recognised under the law. PTI

 

[Blademaster]

Effects of Demonetisation -