Restitutio​n of India’s wealth held abroad: a cause for national action

By janamejayan

by Dr.Kalyanaraman

The issue is not anyone’s hurt and anyone else’s regret, not even about double taxation avoidance agreements; these are mere irrelevant diversions and delay tactics, mere suppressio veri, suggestio falsi.
The imperative is about our safeguarding children’s wealth to which we are all trustees. This is our dharma.
It is our responsibility, our dharma, to ensure restitution of India’s national wealth stashed away in foreign accounts and bring the wealth back to the nation’s financial system.

The restitution of India’s wealth held abroad means that the money should be fully deployed with integrity and transparency — as a National Initiative for Transparency and Integrity NITI नीति — within India’s financial system to benefit the poor people, to benefit the present and future generations to whom the wealth belongs.
Recent changes in Swiss laws provide for the restitution of illicit finances. That the Swiss government takes the issue seriously (as it did with the Philippine First Lady Imelda Marcos’ loot, in 1991) is seen from the announcement that Egypt ex-President Mubarak’s illicit finances have been frozen and would be returned to the people of Egypt.
See the present status of Swiss law at: http://www.scribd.com/doc/38995251/Restitution-of-Illicit-Assets-Act-RIAA
Report of Feb. 19, 2011 Switzerland Freezes Mubarak Regime Assets http://online.wsj.com/article/SB10001424052748703407304576154843483815936.html
Similar action is called for in the case of Indian black moneys reported by the experts to have been stashed away in foreign accounts. This action should be swift, forceful and emphatic to act as a deterrant to future looters and plunderers.
Indian Blackmoney Abroad Report (IBAR): http://bjp.org/index.php?option=com_content&view=article&id=6567:executive-summary-of-indian-black-money-abroad-in-secret-banks-and-tax-havens&catid=68:press-releases&Itemid=494
Mirror: http://tinyurl.com/69obf9e
This note tracks down one particular transaction well documented and reported in a reputed magazine of Switzerland, Schweizer Illustriete, about 2.5 billion dollars then said to have been kept in the account of ex-PM of India Rajiv Gandhi. (See the photograph of Rajiv Gandhi which also appeared in this magazine’s report, reproduced below).
The money movements of this transaction have to be tracked down and brought back to India. This is the responsibility of Govt. of India which is accountable to the people of India which ensuring financial propriety, integrity and accountability of politically exposed persons (PEPs) — a term well recognized by all Central Banks of the world.
As our Hon’ble PM often repeats: Caesar’s wife should be above suspicion. PEPs should certainly be who should not be allowed to route illicit finances through Participatory Notes which violate the key principle applicable to PEPs — a financial institution’s responsibility with the financial dictum: KNOW YOUR CLIENT (KYC).
kalyan
Fluchtgelder500 Millionen in der Schweiz – Imeldas faule Tricks
Weil sie so das Millionen-Vermögen ihres Clans auf Schweizer Banken retten will, kehrte die Diktatoren-Witwe Imelda Marcos jetzt nach Manila zurück.
SI 46/1991 – Fluchtgelder – Seiten 38/39
Translation to English: Flight capital500 million in Switzerland – Imelda dirty tricks
Because they are so will save millions of their clan’s assets in Swiss banks, the dictator’s widow Imelda Marcos now returned to Manila.
Tot. 2.5 Milliarden Franken auf Englischen Gehwinkontes in der Schweiz
Translation from German: Tot. 2.5 billion Swiss francs in Switzerland on English Gehwinkontes
Autor: Daniela Gisler
02.11.1991 14:17

http://www.schweizer-illustrierte.ch/zeitschrift/500-millionen-der-schweiz-imeldas-faule-tricks

pdf version: http://www.schweizer-illustrierte.ch/sites/default/files/SI-46-1991-Seiten-38-41.pdf
Mirror: http://www.docstoc.com/docs/71927472/schweizerillustriete2november1991-SI-46-1991-Seiten-38-41
…Writing a column in The New Indian Express on January 3, 2011, titled ‘Zero Tolerance, Secret Billions’, S Gurumurthy, one of India’s well-known chartered accountants and an expert on these matters, pointed out to the expose of over a dozen Third World politicians contained in Schweizer Illustrierte, in its issue dated November 19, 1991, six months after the assassination of Rajiv Gandhi.
The venerable Swiss magazine alleged that approximately $2.2 billion was lying in the credit of a numbered Swiss bank account in the name of Rajiv Gandhi. As Rajiv Gandhi has been assassinated by then, there could be no possible denial or verification.
Similarly, Dr Yevgeniya Albats, the author of The State Within a State: KGB and Its Hold on Russia, too has pointed out to the payments by the KGB to several prominent Indians in the seventies and the eighties through such accounts…
The Swiss magazine has not carried any further story on the said numbered accounts since then. What happened to the money? Is it still lying with the Swiss bank? What have successive governments done to follow up on this story? …
Or was the reputed Schweizer Illustriertecompletely wrong on this matter? If so, why is it that the government of India has not sought an official apology from the Swiss magazine, especially given the fact that the person — a former prime minister of the country, no less — is not around to defend his honour?
Fascinatingly, his party has been in power for eleven of the nineteen years since then. Yet, there is complete silence from the party. More interesting is the fact that in the rest of the period, his political opponents have been in power. They too remained silent when they could have easily pursued the matter.
When it comes to the tax havens, ostrich not peacock would be our national bird
What is crucial according to Gurumurthy is that this information of the late Rajiv Gandhi having a Swiss account has been in public domain for over a decade. Gurumurthy points out “A G Noorani, a well-known columnist, had reported on bothSchweizer Illustrierte and Albats’ exposes in Statesman.
Janata Party leader Subramanian Swamy had put out the photocopies of the pages ofSchweizer Illustrierte and Albats’ book on his web site along with the mail of the Swiss magazine, dated February 23, 2002, confirming that in its article of November 1991 it had named Rajiv Gandhi with a total of Swiss Franc 2.5 billion ($2.2 billion) in a secret account.”
“This was again recalled in my article inThe New Indian Express (April 29, 2009) written in response to Congress president Sonia Gandhi’s speech at Mangalore (April 27, 2009) declaring that, “the Congress was taking steps to address the issue of untaxed Indian money in Swiss banks,” Gurumurthy writes.
Gurumurthy continues “Rajinder Puri, a reputed journalist, has also earlier written on the KGB disclosures in his column on August 15, 2006. Recently, in India Today (December 27, 2010) the redoubtable Ram Jethmalani has referred to the Swiss expose, asking where is that money now?
Yet the Congress has not reacted to these allegations to this date. It has maintained a stoic silence — except for the fact that the prime minister has made a tacit admission last week that bringing back the money from tax havens would a long-drawn affair!

http://www.rediff.com/business/slide-show/slide-show-1-when-it-comes-to-tax-havens-we-turn-a-blind-eye/20110128.htm

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