India's Supreme Court has said that the practice of illegal funneling of wealth overseas by Indians is a "pure and simple theft of national money"
India has lost more than $460bn in such illegal flight of capital since Independence, as per the US-based group Global Financial Integrity.
It said the illicit outflows increased after economic reforms began in 1991. India's underground economy has been estimated to account for 50% of the country's GDP - $640bn at the end of 2008.
A former federal Law Minister Ram Jethmalani and others has files a petition on the alleged inaction of the government in bringing back illegal money parked overseas by rich Indians and companies. In response, India's Solicitor-General Gopal Subramanian submitted a sealed cover containing 16 names of individuals and companies who had accounts with a Liechtenstein-based bank.
It’s a mind boggling crime indeed !
Mr Subramaniam said the government was taking measures to bring back the illegal money, but said there were difficulties in sharing the information because of confidentiality treaties between countries. "All we want is that you give all the information about the money deposited in the foreign banks by Indians. You cannot confine the petition to one bank," Justice SS Nijjar said.
The court has fixed 27 January as the next date of hearing.
Global Financial Integrity said the illegal flight of capital through tax evasion, crime and corruption had widened inequality in India.
High net-worth individuals and private companies were found to be primary drivers of illegal capital flows.
Unitedworld Executive.
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