Govt forms multi-agency group to probe Pandora Papers leak

The Central government has informed that a multi-agency Group, headed by the Chairman, CBDT — having representatives from CBDT, ED, RBI & FIU — will monitor the news coverage appearing in the media under the name ‘PANDORA PAPERS’. A report by Krishnanand Tripathi.

New Delhi:Stunned by the reports about rich Indians stashing away their wealth in overseas tax havens, the Central government Monday announced formation of a multi-agency group headed by the Chairman of Central Board of Direct Taxes (CBDT) to probe the cases related to Pandora Paper leak. The agency will have members from India’s premier anti-corruption agency Central Bureau of Investigation (CBI), anti-money laundering probe agency Enforcement Directorate (ED), Financial Intelligence Unit (FIU) and officials from the Reserve Bank of India.

On Sunday, a group of international investigative journalists, the International Consortium of International Journalists (ICIJ) released a huge amount of data that exposed the offshore secrets of wealthy elites from more than 200 countries and territories.

The ICIJ, which has earlier exposed the clandestine financial dealings of the world’s wealthy and rich people five years back, known as Panama Paper Leak, Sunday released some 2.94 terabyte data detailing the secret financial dealing of politicians, businessmen, sports celebrities that were not covered in the first round of investigation.

Prominent Indians figure in ICIJ list

Some prominent Indians figure in the data shared by the ICIJ such as industrialist Anil Ambani, cricketing legend Sachin Tendulkar, and corporate lobbyist Niira Radia, who attained notoriety for her links with the alleged 2G spectrum allocation scam that led to arrest of then telecom minister and DMK leader A Raja.

Niira Radia also figured in Panama paper and Paradise papers cases as well.

Other notable Indians that figure in the list include the names of fugitive diamond baron Nirav Modi, Biocon founder Kiran Mazumdar Shaw, and Gandhi family loyalist and former Congress leader Satish Sharma, who passed away in February this year.

The investigation is based on the leak of confidential records of 14 offshore service providers that give professional services to wealthy individuals and corporations seeking to incorporate shell companies, trusts, foundations and other entities in low or no-tax jurisdictions.

In a statement issued on Monday evening, the ministry of finance said it has taken note of these developments.

The relevant investigative agencies would undertake investigation in these cases and appropriate action would be taken in such cases as per law, said the ministry.

“With a view to ensure effective investigation in these cases, the Government will also proactively engage with foreign jurisdictions for obtaining information in respect of relevant taxpayers and entities,” the ministry added.

India is already a part of an Inter-Governmental Group that ensures collaboration and experience sharing to effectively address tax risks associated with such leaks.

“The Government has directed today that investigations in cases of Pandora Papers leaks appearing in the media under the name ‘PANDORA PAPERS’ will be monitored through the Multi Agency Group, headed by the Chairman, CBDT, having representatives from CBDT, ED, RBI & FIU,” said the ministry of finance.

The ministry said that following earlier similar such leaks in the form of ICIJ, HSBC, Panama Papers and Paradise Papers, the Government had already enacted the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with the aim to curb black money, or undisclosed foreign assets and income by imposing suitable tax and penalty on such income.

Over Rs 20,000 crore unaccounted wealth detected

As per the latest data shared by the ministry, the enforcement agencies have already detected undisclosed credits of Rs 20,352 crore in the investigations carried out in the Panama and Paradise Papers.

According to officials, though the names of some Indians, individuals as well as entities, have been released by the ICIJ, the group of investigative journalists have not yet released the full details on its website.

The website of ICIJ suggests that information will be released in phases and structured data connected to the Pandora Papers investigation will be released only in the days to come on its offshore leaks database.

A group of 600 investigative journalists on Sunday published new papers over the alleged involvement of a number of world leaders, including Russian President Vladimir Putin and King Abdullah II of Jordan and other high-profile individuals in tax haven schemes.

Names mentioned in the controversial expose also includes cricket legend Sachin Tendulkar, business tycoon John Shaw, pop star Shakira and many more influential people from various parts of the world.

It took the ICIJ almost two years to organise the investigation --- more than 600 journalists in 117 countries --- making it the biggest-ever journalism partnership. The Panama Papers, a similar investigation undertaken about five years ago, involved close to 400 journalists from 80 countries.