by Harish Gupta, National Editor, Lokmat Group
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Rs.30L
crore siphoned out of India in 10 yrs
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Black Money
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￭
SIT
orders DRI probe
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India
ranks 4th in money laundering
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Harish Gupta
New Delhi, Feb. 15 : |
The
Special Investigation Team (SIT) has directed the Directorate of
Revenue Intelligence (DRI) to probe the estimated outflow of `30 lakh
crore ($ 505 billion) during the 2004–2013 period. The
mind-boggling figure of `30 lakh crore was given by the Global
Financial Integrity panel in December 2015. The panel undertook this
extensive study of Trade Based Money Laundering and released its
report saying that India lost `30 lakh crore during the 10 year
period when UPA was in power.
The report of the Global Financial
Integrity panel and action of the SIT today came as a shot in the arm
for the Modi government which had been alleging that money to the
tune of billions of dollars was siphoned out of the country during
the UPA regime. The Supreme Court had directed the UPA to constitute
the SIT on Black Money. But it kept dithering and the Modi government
agreed to form the SIT soon after coming to power.
The Global
Financial Integrity panel in its various reports, observed that Trade
Based Money Laundering is a major source through which illicit money
is taken out of the country. India ranked fourth amongst the
developing nations with China topping the chart followed by Russia
and Mexico. The SIT had recommended that there should be
institutional mechanism through a dedicated set up which examines
mismatch between export/import data with corresponding import/export
data of other countries on a regular basis.
The SIT has also
recommended that wherever possible, especially in case of
commodities, a system for cross checking the prices of
imports/exports with international prices may be done. Various
reports including those by Global Financial Integrity have emphasised
that Trade Based Money Laundering is the main medium or process
through which funds are illegally taken out of countries. The DRI
under the ministry of finance has been asked to verify the extent to
which the calculations of money laundered are correct.
The
SIT has also observed that since reports like those of Global
Financial Integrity which calculate illicit financial flows from
various countries, are widely used in academic circles and inform the
debate on this issue, it is very crucial to ascertain the veracity of
such reports. The SIT, however, refrained from making any statement
on the findings of the report saying "further necessary action
shall be taken after receipt of report from DRI". The details of
the report obtained from the international panel, have been sent to
DRI last week by the SIT.
The
Global Financial Integrity, in its report, "Illicit financial
flows from developing countries 2004–2013" has estimated that
illicit financial flows out of ten top countries is to the tune of $5
trillion. The report says developing and emerging economies across
the world lost US$7.8 trillion in illicit financial flows from 2004
through 2013, with illicit outflows increasing at an average rate of
6.5 per cent per year - nearly twice as fast as global GDP. The
Global Financial Integrity panel conducted this study which was
supported by the Government of Finland.
