Black money of Indians in Swiss banks rose 50% to over Rs 7000 cr in 2017

Agencies
June 28, 2018

Zurich, Jun 28: Money parked by Indians in Swiss banks rose over 50% to Swiss Francs (CHF) 1.01 billion (₹7,000 crore) in 2017, reversing a three-year downward trend amid India’s clampdown on suspected black money stashed there.

In comparison, the total funds held by all foreign clients of Swiss banks rose about 3% to CHF1.46 trillion or about ₹100 lakh crore in 2017, according to the official annual data released on June 28 by Swiss National Bank (SNB), the central banking authority of the Alpine nation.

The surge in Indian money held with Swiss banks comes as a surprise given India’s continuing clampdown on suspected black money stashed abroad, including in banks of Switzerland that used to be known for their famed secrecy walls for years.

The Indian money in Swiss banks had fallen by 45% in 2016, marking their biggest ever yearly plunge, to CHF676 million (about ₹4,500 crore) — the lowest ever since the European nation began making the data public in 1987.

According to the SNB data, the total funds held by Indians directly with Swiss banks rose to CHF999 million Swiss franc (₹6,891 crore) in 2017, while the same held through fiduciaries or wealth managers increased to CHF16.2 million (₹112 crore). These figures stood at CHF664.8 million and CHF11 million, respectively, at the end of 2016.

As per the latest data, the Indian money in Swiss banks included CHF464 million (₹3,200 crore) in the form of customer deposits, CHF152 million (₹1,050 crore) through other banks and CHF383 million (₹2,640 crore) as ‘other liabilities’ such as securities at the end of 2017.

The funds under all three heads have risen sharply, as against a huge plunge across all categories in the previous year, the SNB data showed.

The funds held through fiduciaries alone used to be in billions till 2007 but began falling after that amid fears of regulatory crackdown.

The total funds held by Indians with Swiss banks stood at a record high of CHF6.5 billion (₹23,000 crore) at 2006-end, but came down to nearly one-tenth of that level in about a decade.

Since those record levels, this is only the third time when there has been a rise in Indians’ money in Swiss banks — in 2011 (12%), 2013 (43%) and now in 2017 by 50.2% — the maximum increase since 56% way back in 2004.

The latest data from Zurich-based SNB comes months after a new framework having been put in place for automatic exchange of information between Switzerland and India to help check the black money menace.

While Switzerland has already begun sharing foreign client details on evidence of wrongdoing provided by India and some other countries, it has agreed to further expand its cooperation on India’s fight against black money with a new pact for automatic information exchange.

There were several rounds of discussions between Indian and Swiss government officials on the new framework and also for expediting the pending information requests about suspected illicit accounts of Indians in Swiss banks.

The funds, described by SNB as ‘liabilities’ of Swiss banks or ‘amounts due to’ their clients, are the official figures disclosed by the Swiss authorities and do not indicate to the quantum of the much-debated alleged black money held by Indians there.

SNB’s official figures also do not include the money that Indians, NRIs or others might have in Swiss banks in the names of entities from different countries.

Amid a decline seen in Indian money over the previous three years, there was a view that Indians who had allegedly parked their illicit money in Swiss banks in the past may have shifted the funds to other locations after a global crackdown began on the mighty banking secrecy practices in Switzerland.

Swiss banks have earlier said Indians have “few deposits” in Swiss banks compared to other global financial hubs like Singapore and Hong Kong amid stepped-up efforts to check the black money menace.

On directions of the Supreme Court, India had constituted a Special Investigation Team (SIT) to probe cases of alleged black money of Indians, including funds stashed abroad in places like Switzerland.

A number of strategies were deployed by the government to combat the stash-funds menace, in both overseas and domestic domain, which included enactment of a new law, amendments in the Anti-Money Laundering Act and compliance windows for people to declare their hidden assets.

The Income Tax department had detected suspected black money running into thousands of crores of rupees post investigations on global leaks about Indians stashing funds abroad and has launched prosecution against hundreds of them, including those with accounts in the Geneva branch of HSBC.

The issue of black money has always been a matter of big debate in India and Switzerland has been long perceived as one of the safest havens for such funds.

In 2015, the money held by Indians in Swiss banks had fallen by nearly one-third to CHF1,217.6 million (over ₹8,000 crore). Prior to that, these funds fell by 10% to CHF1.8 billion in 2014, after a rise of 43% in 2013 to CHF 2.03 billion.

The total assets of Swiss banks in India, however, fell by about 18% in 2017 to CHF3.2 billion in second consecutive year of decline. This does not include any tangible assets like real estate and properties.

The amount owed by Indian clients to Swiss banks fell by 48% in 2017 to CHF210 million.

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News Network
May 2,2024

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Mangaluru: This year too, the Mangaluru International Airport has missed being designated as an embarkation point for the annual hajj pilgrimage. 

According to the Haj Committee of India, not many are choosing Mangaluru as an embarkation point. Last year, although Mangaluru was notified as one of the embarkation points, the Union government removed it from the list at the last minute.

Several associations and organisations submitted memorandums to the Haj Committee of India, requesting the reinstatement of Mangaluru as one of the embarkation points, but their efforts have not materialised this year either.

The use of Mangaluru Airport as an embarkation point for the haj began in 2010. In 2019, 1,400 haj pilgrims flew from MIA to Saudi Arabia.

“When the number is less, it is difficult to consider it. It was the same issue as last year,” reacted AP Abdullakutty, chairman of the Haj Committee of India.
Mangaluru as an embarkation point served people from undivided Dakshina Kannada, Kodagu, Shivamogga, Uttara Kannada, and Chikkamagaluru districts.
Last year, the Muslim Central Committee of Dakshina Kannada and Udupi districts submitted a memorandum to Abdullakutty. They expressed their disappointment with Abdullakutty and stated that Mangaluru had a good number of applicants ever since it was identified as an embarkation point. 
Now, they have to travel to Bengaluru. 

UT Khader, speaker of the Karnataka legislative assembly, pointed out that several Union ministries are involved in the process of designating embarkation points for the haj.

“We are not sure why MIA as an embarkation point was removed. Is it because of fewer applications, or are airlines not willing to bid for MIA as an embarkation point? Is it only an issue with MIA as an embarkation point, or are there other airports in the country facing similar issues? We will try to find out and seek answers. Meanwhile, we will also start working at the earliest so that MIA is considered as an embarkation point for hajj next year,” said Khader.

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News Network
May 5,2024

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Bengaluru, May 5: In a major development, the Special Investigation Team (SIT) probing the sex video scandal involving JD-S MP Prajwal Revann on Saturday arrested his father and JD-S MLA H.D. Revanna following the rejection of his anticipatory bail plea in a victim kidnapping case by the People’s Representative Court in Bengaluru.

H.D. Revanna was taken into custody from the residence of his father and former Prime Minister H.D. Deve Gowda in Bengaluru’s Padmanabhanagar locality.

First, he was taken to the SIT office on the premises of the Criminal Investigation Department (CID). After preliminary questioning, the former JD-S minister was taken to the Bowring Hospital for a medical check-up.

Sources said he will be produced before the magistrate at the latter's residence later.

Commenting on the development, Chief Minister Siddaramaiah told mediapersons that he won’t interfere in the matter.

“Action should be initiated as per the law,” he said.

Deputy Chief Minister D.K. Shivakumar said, “We will not interfere in anything related to this matter. Let them get protection from the court under the law."

Shivakumar also said that let the proceedings follow the manner suggested by former CM H.D. Kumaraswamy.

Quoting a Kannada proverb, Kumaraswamy had said that those who commit crime must be punished.

The SIT officers reached the former PM’s residence soon after the court turned down his anticipatory bail plea in a case related to the kidnapping of a woman who was allegedly sexually assaulted by his son Prajwal Revanna, the sources said.

Earlier on Saturday, the SIT traced the kidnapped woman to the farmhouse of Rajashekar, the personal assistant (PA) to H.D. Revanna, at Kalenahalli village in Mysuru district.

In the court, Special Public Prosecutor B.N. Jagadish submitted that the case is about saving the life of a poor woman.

Jagadish argued that H.D. Revanna did not turn up before the authorities even after being served three notices.

Senior counsel Muthy D. Naik, appearing for H.D. Revanna, argued that the only allegation against his client is a statement that he had called the victim to his residence.

Barring this, there is nothing to prove the role of H.D. Revanna in this case, he argued, adding that the statement was made by an accused in the case, with whom his client has no connections.

He also claimed that the SIT has deliberately added IPC Section 364A, which attracts life imprisonment and capital punishment, to ensure that his client’s bail plea is rejected.

The other IPC Sections invoked in the case — 363 and 365 — attract imprisonment of less than seven years. Therefore, to prove the innocence of H.D. Revanna, he should be granted bail, Naik submitted.

Meanwhile, the woman, who had gone missing on April 29, was found locked up in the farmhouse when the SIT officers reached there following a tip-off.

Sources said Rajashekar is absconding ever since the SIT traced the missing woman to his farmhouse.

The woman is being brought to Bengaluru where her statement will be recorded.

On Friday, Karnataka Police registered an FIR against H.D. Revanna in connection with the kidnapping of the woman, believed to be one of the victims of the sex video scandal involving his son Prajwal Revanna.

The woman’s son had registered a kidnap case naming H.D. Revanna as the prime accused in the case.

His relative Satish Babu was named as the second accused in the FIR, whom the police arrested from Mysuru district on Friday.

The woman’s son alleged that his mother went missing after the surfacing of a purported sex video in which Prajwal Revanna could be seen sexually assaulting her.

He also alleged that his mother was locked up in an undisclosed location, as he pleaded with the police to initiate legal action against H.D. Revanna and Satish Babu.

Prajwal Revanna, the sitting JD-S MP from Hassan, has reportedly fled from the country.

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News Network
April 25,2024

Bengaluru, Apr 25: Former union minister C M Ibrahim, who was expelled from Janata Dal (Secular) for protesting against party’s alliance with BJP, has stressed on need for a third front not just at the national level, but also in Karnataka. 

Addressing a news conference in Bengaluru on Wednesday, he said he’s planning to form a third front in Karnataka along with Lingayat Seer Dingaleshwar Swami.

Ibrahim said that he will tour the state between April 27 and May 4 and that he would meet Dingaleshwar Swami on April 29. “There is a need for the third front in this country. We will try to establish a third front in association with the seer and we hope we will be successful in those efforts,” he said.

Expressing disappointment with the Congress for not doing enough to gain the full confidence of Muslims, Ibrahim said that Congress is concentrating only on certain communities for votes, and ignoring Muslims. 

“The Congress is not even caring for Muslims and Dalit votes. In some Muslim areas they did not even hold campaigns seeking votes and trying to convince the communities which never vote in their favour. I fear this may lead to low turnout and Congress may lose its vote base,” he opined.

Mentioning about guarantees on which Congress is strongly relying during this election, Ibrahim said, such things won’t work all the time. “Guarantees will not work anymore. Every election you need to give something new to the voters,” he added.

On Prime Minister Narendra Modi’s statement that Congress is trying to appease minorities for votes, Ibrahim requested both Congress and BJP parties not bring Muslims between them. “I request both parties. Leave us alone. Don’t make us sandwiches for your political sake. We are living with peace and hope even the Prime Minister will understand this,” Ibrahim added.

Launching a broadside against Prime Minister Deve Gowda, Ibrahim said, “Deve Gowda has sold his personality itself. Whatever I have told about JD(S) has come true. I pity, a former Prime Minister should not have come to this stage,” he said. 

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