The Hindu Business Line : No action taken by Govt in 5 years on money laundering issue: PIL

The Supreme Court allows petitioners in illicit funds case to file a “comprehensive rejoinder” to the revenue department’s reply affidavit on the matter.

Our Bureau

New Delhi, May 4 The Supreme Court on Monday allowed the former Union Law Minister, Mr Ram Jethmalani, and other petitioners in the PIL (public interest litigation) on illicit funds stashed in foreign banks to file a “comprehensive rejoinder” to the revenue department’s reply affidavit on the matter.

This is even as the Additional Solicitor General, Mr Gopal Subramaniam, sought dismissal of the petition. The apex court has now posted the hearing on the public interest litigation to July 28.

A Bench headed by the Chief Justice Mr K.G. Balakrishnan, said that the Centre can also respond to the brief written submission filed on Monday by the petitioners and to the ‘comprehensive rejoinder’ that would be filed by them (petitioners) in the coming days.

In their written submission filed on Monday, the petitioners have raised the issue of a delayed affidavit in reply by the revenue department, submitted detailed information to show that they (petitioners) were independent Indian citizens and had no links with the Bharatiya Janata Party (BJP) or any other political party.

The petitioners have also referred to statements made by Government officials and a political party leader to highlight that illicit funds from India parked in foreign banks and foreign tax havens could be used for funding terrorists and subversive activities.

Raising questions

Also, they have now questioned why the criminal cases and investigations launched against Mr Hassan Ali Khan for allegedly holding three fake passports have not been mentioned in the reply affidavit or pressed into service for getting information from the Swiss authorities and UBS Bank.

The written submission noted that prima facie, this (Hassan Ali Khan case) was a clear case that can be brought under the prevention of money laundering Act. It is clear that the Swiss authorities would be bound to disclose information if criminal cases were initiated against him, apart from tax evasion.

“Is it not unreasonable to infer that the Union of India is interested in protecting powerful individuals, who may be using Hassan Ali Khan and his wife as their nominee/benamidar”, the petitioners’ written submission noted.

They also alleged that not even a single individual had been apprehended/interrogated by the Government in the last five years in relation to money laundering and slush funds from illicit funds parked abroad.

The revenue department had, in its affidavit, filed with the apex court last weekend, refuted allegations of inaction on bringing back to India such illicit funds parked in tax havens and foreign banks.

The affidavit had highlighted the steps taken by the Centre and the constraints faced by it, including the Swiss authorities’ refusal to share bank information under the Double Taxation Avoidance Agreement between the two countries.