Prime Minister Manmohan Singh’s statement that the information provided by a German bank on illegal Indian accounts will be only used for the purpose of tax collection can only be considered a continuation of the policy of shielding the corrupt and the criminal elements in the society. The huge amount of black money held by Indians in foreign banks has been a matter of concern and discussion. The government has, in the past, said many times that it would try to recover the money and punish those who have stashed away these billions. The issue has figured in the supreme court which has repeatedly admonished the government in the matter. The latest comments of the court on the matter are very harsh and it has called the stashing away of funds are pure and simple theft and a mind-boggling crime.
The government has not been able to convince the court that the recovery of the money is just a matter of taxation. The people also will not accept the argument. According to the government, the names of the 26 account-holders in the German bank cannot be disclosed because it would go against the country’s treaty obligations. This will mean that the names of violators of the country’s laws will remain a secret and no action will be taken about them. The recovery of the taxes due from them and imposition of even a penalty should not be the end of the course of action against them. Even this cannot be verified as long as the government’s action remains a secret.
Black money cannot be just an issue of tax evasion. The taxes paid by the citizens or Indian trusts or companies are in the public domain and the entire nation has a right to know the details. The money in foreign banks is not only money on which tax has not been paid. It could have been amassed through corruption or other invidious ways. The source of these funds should be made known to the people and those who committed illegalities to amass them and take them out of the country should be punished. The entire horde should be repatriated also. This will not be possible if the details are kept secret. The refusal of the government to disclose the information will only confirm the popular perception that the government is shy of action because important people are involved in the crime.