To avoid another uncomfortable situation similar to when public outpoured its support for social activist Anna Hazare’s fast against corruption, the government has set up a panel to curb the generation of black money and its transfer to overseas locations before the proposed fast by Swami Ramdev on the issue.
The panel will be headed by the Central Board of Direct Taxes chairman and will also suggest ways to bring illegal deposits abroad back into India’s legitimate financial system.
The move comes exactly a week before the proposed indefinite hunger strike by yoga guru Swami Ramdev from June 4, to pressure the government to bring back black money allegedly stashed in foreign tax havens.
Senior government officials recently briefed Ramdev about the legal constraints in bringing back black money parked abroad. Ramdev, however, has demanded concrete steps from the government.
The committee will examine the existing legal and administrative framework to deal with the generation of black money through illegal means and submit its report within six months.
The committee includes member, legislation and computerisation of the CBDT, director of the Enforcement Directorate, director general of the Directorate of Revenue Intelligence and law ministry joint secretary.
The Supreme Court has been increasingly critical of the way the Congress-led United Progressive Alliance government was trying to avoid investigation of illegally acquired wealth and conviction of people found responsible for money laundering.
Though some activists led by S. Gurumurthy, Co-convenor of Swadeshi Jagaran Manch, have long been demanding action by government to bring back Indian money hidden in tax havens, the issue got public support after social activist Anna Hazare went on a 97-hour fast seeking a stringent anti-graft law.
Yoga guru Baba Ramdev too plans a similar agitation from June 4 if the government does not do anything to get back the black money stashed in foreign banks.