The government?s move to strengthen regulations to curb black money generation could be delayed as the meeting of a panel headed by the Central Board of Direct Taxes (CBDT) chairman has been put off indefinitely following the Supreme Court order setting up a special investigative team (SIT) to probe these illicit funds. The committee was set to meet in the first half of July. With SIT having a similar role as that of the newly constituted committee, the finance ministry feels it is better to get clarity over their roles before taking any further step.
A meeting of the panel would be convened only after a clarification is obtained on the apex court?s decision, a finance ministry official said, adding that the whole process might take some time. Meanwhile, the finance ministry has approached the law ministry to seek its opinion on the SC order and would seek a review by a larger bench of the court after getting the opinion.
Ever since the apex court decided to constitute the team, finance ministry officials have been discussing the need to have another probe agency when a committee headed by the CBDT chairman is looking into the matter.
In its first meeting last month, the panel asked agencies like Directorate of Revenue Intelligence and Enforcement Directorate to review the existing legislation for tackling the menace of illicit money. The committee is also exploring the option to make tax evasion a criminal offence.
The government had constituted the panel in May to look into strengthening of the law to curb black money generation and examine the existing legal and administrative framework. The committee is also considering declaration of the wealth generated illegally as a national asset. It will submit its report in six months.
The finance ministry sees some problems in implementing the SIT order. One is that no time period has been outlined for the SIT. Besides, more clarity is needed on whether the SIT will probe cases in which investigations have already commenced or only those where they are yet to begin, an official said.
Earlier this month, the Supreme Court criticised the government for its alleged failure to take the necessary steps to bring back huge amounts of illicit funds hidden abroad and formed an SIT headed by a former SC judge BP Jeevan Reddy to probe the matter.
The SIT will have full powers to make ?cold inquiries and cold investigations in India and abroad? and will have the cooperation of all the government agencies, the court had said. It will file its first status report in the third week of August, the order had said.