Pranab Mukherjee to disclose govt move on black money

Union Finance Minister Pranab Mukherjee, on behalf of the United Progressive Alliance (UPA) government, will be explaining its strategy in dealing with Indian money in foreign banks on Tuesday.

“Finance Minister will hold a press conference on the issues related to black money tomorrow,” Finance Ministry spokesman told reporters here on Monday.

The move comes after the Supreme Court on Wednesday (Jan 19) expressed its disapproval over the government?s reluctance to divulge details of Indian money in foreign banks.

Refusing to accept the government?s contention that it could not make public the names of foreign bank account holders on international propriety grounds, a SC bench said: ?It is a pure and simple theft of the national money. We are talking about mind-boggling crime. We are not on the niceties of various treaties.?

Taking up a petition by former Union Law minister Ram Jethmalani, a division bench of justices B Sudershan Reddy and S S Nijjar remarked: ?We are talking about huge money. That is plunder of the nation.?

The apex court also expressed its displeasure over the government affidavit restricting information relating to the money deposited by 26 persons in Liechtenstein Bank in Germany.

?This is all the information you have or you have something more?? the bench asked.

The Central government had on Tuesday (Jan 18) submitted to the Supreme Court the list of Indians who have accounts in Liechtensteins LGT Bank in a sealed cover.

Media reports said that at least 26 names have been included in the list submitted before the apex court by the Central Board of Direct Taxes.

The government, however, refused to share the information in public domain, stating that it would violate a sovereign agreement between India and Germany.

The government has maintained that making the names public would violate Clause 26 of the DTAA (Double Taxation Avoidance Agreement) and also hamper negotiations with Switzerland and a dozen other countries on amending the existing DTAAs to provide for exchange of information related to bank accounts.

Under the clause, the information submitted is privileged and details of the informant, its recipient and that of accountholders cannot be revealed to any third person except share it with the court or investigating agencies.