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Keen to get a fix on the quantum of black money stashed abroad, the Special Investigation Team set up by the Supreme Court has asked the Directorate of Revenue Intelligence to verify if $505 billion left the country between 2004 and 2013.
“The SIT will take further necessary action after the receipt of the report from DRI,” the Finance Ministry said on Monday.
The move comes after the US-based Global Financial Integrity, in its report, “Illicit Financial Flows from Developing Countries 2004–2013” had estimated that India was the fourth largest outflow of black money globally, estimated at $505 billion for the period 2004 and 2013.
The Finance Ministry said that the SIT, which is led by former Supreme Court judge MB Shah, has obtained detailed calculations of country–wise illicit financial flows for each of these years from Global Financial Integrity.
“Thereafter, details have been sent to DRI on February 8, 2016 and DRI has been asked to verify the extent to which the calculations are correct,” it said.
Sources said that the DRI is likely to submit its report in a two month timeframe. “The report will take about one-and-a-half to two months to be submitted. It will help the government understand how much black money is abroad,” said a senior official, noting that the government has taken measures to combat domestic black money.
The Finance Ministry said that the SIT has observed agencies such as Global Financial Integrity calculate illicit financial flows from various countries. “SIT also observed that their reports are widely used in academic circles and inform the debate on this issue,” it said.
In its second report submitted in December 2014, the SIT had recommended for an institutional mechanism through a dedicated set-up to examine mismatch between export and import data.
It had also recommended that wherever possible, especially in case of commodities, a system for cross checking of prices of imports and exports with international prices may be done. The statement said SIT, in its various reports, has highlighted the menace of trade- based money laundering, a major source of illicit money flow out of the country.
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