Black money hoarders who think Middle East is safe are now on the government’s radar

Advertisement
The Central Government is quite serious about black money dumping in tax havens. In a recent development, the government is now getting into collaborations with the key Middle East countries to find out the names who have kept money there. The recent proofs of questionable transactions and siphoning off money have catalysed the process.
Advertisement

Agreements between the government and the Middle East countries will help secure the financial records and other details about firms owned or set up by Indian promoters or firms and operating in those countries, according to the Economic Times.

This would mean the that Indian investigating agencies such as the Enforcement Directorate (ED) or the Central Bureau of Investigations (CBI) can now question the suspected companies with ease.

"Many Indian promoters have misused banking channels for diverting their funds from India. At least one of the agreements could be reached in the next few months,” a person with direct knowledge of the matter told ET.

A recent forensic investigation found that properties worth around Rs 2,000 crore had been created outside India in the name of the promoter's brother in the time leading up to the default. Investigators also uncovered a complex maze of shell companies through which money is believed to have siphoned out for building the property.

Advertisement

"Our forensic investigators highlighted similar issues in many high-value accounts which have had trouble servicing debt. Many S4A (Scheme for Sustainable Structuring of Stressed Assets) cases are also stuck because the independent techno-economic viability study has thrown up discrepancies in usage of funds,” a banker told the ET.



{{}}