SC raps govt for non-action on black money

Written by Press Trust of India | New Delhi | Updated: Jan 28 2011, 07:54am hrs
The government on Thursday found itself on the backfoot in the Supreme Court which asked why action has not been taken against those who have stashed black money in foreign countries and asked it to go after the source of money which may be from arms deals, drug trafficking and smuggling. The apex court directed the government not to restrict its probe on the aspect of tax evasion only and expand its ambit by tracking the source of money which might have originated from anti-national activities.

Looking at the issue from taxation point of view is only one aspect. Some names have been given to you in respect of a bank. What steps have you taken Have you set law in motion. They are Indian people and are amenable to Indian law, a Bench comprising Justices B Sudarshan Reddy and S S Nijjar said.

That is a serious matter which we are concerned about. You know the names, (you know) where the money is lying, still you are talking about double taxation issue, the Bench said, asking What action have you taken against them when you came to know that they have stashed money in foreign bank. The courts remark came after the Solicitor General Gopal Subramanium submitted that the government is taking all actions under Double Taxation Avoidance Agreement against the people who have stashed money in foreign banks.

The government, however, tried to convince the court that it is taking all possible action under international agreements and law against the erring persons and it has no problems in sharing the information with the court.