India’s top court told names of 26 alleged tax evaders with bank accounts in Liechtenstein
New Delhi – The government Tuesday disclosed to the Supreme Court the names of 26 people who had accounts in banks in Liechtenstein, revealed to India by German authorities.
A bench of Justice H.L.Dattu, Justice Ranjana Prakash Desai and Justice Madan B. Lokur were given these names by Solicitor General Mohan Parasaran in two sealed covers having 18 and 8 names respectively.
The 18 names that were disclosed by the government are of those in respect of whom the investigations have been completed by the Income Tax Department and prosecution launched against 17 as one of the account holders has expired.
The court was told that second sealed cover has the names of eight account holders against him no there is no evidence of tax evasion in terms of Indian tax laws.
As senior counsel Anil Divan urged the court that even these eight names should be disclosed, Justice Dattu said that he along with Justice Desai and Justice Lokur will deliberate on the matter and take a call on this issue.
The court said that it would hold the next hearing on Thursday.
Taking the court through the Indo-Germany Double Taxation Avoidance Convention and the Reciprocity Agreement, Solicitor General Prasaran said India could get these names after a lot of effort and was under an obligation to maintain confidentiality.
He said that under the agreement such an information can only be disclosed to persons and authorities including courts and administrative bodies for the assessment and collection of taxes covered by the DTAC.
Parasaran said that the disclosure of the information to the petitioner – senior counsel Ram Jethmalani – would amount to putting the information in public domain and may jeopardise India”s credibility with Germany and other countries with which it has double taxation avoidance agreement.
It may also compromise India”s credibility and ability to gather information from these countries in future, he added.
Divan, who appeared for Jethmalani, told the court that all these submissions by the government were advanced way back in 2011 and were rejected by the apex court by its July 4, 2011, verdict.
Referring to Aug 15, 2011 and April 18, 2014, letter of Justice B.P.Jeevan Reddy expressing his inability to head the SIT that was set up by July 4, 2011 order of the apex court, the court said that it would decide on the three names suggested by both sides for the appointment as chairman and deputy chairman of SIT.
The court was informed that the present deputy chairman, Justice (retd.) M.B.Shah was ready to head the committee and the three names suggested to the court were of judges who retired later than him. The court said that it would decide the same on next hearing on Thursday.
Eighteen names and they trusts associated with them are: Mohan Manoj Dhupelia, Ambrish Manoj Dhupelia, Bhavya Dhupelia (now Bhavya S. Shanbag), Manoj Dhupelia, Rupal Dhupelia (all Ambrunova Trust reg.; Marline Management S.A), Hansmukh Ishwarlal Gandhi, Chintan Hansmukh Gandhi, Madhu Hansmukh Gandhi, Late Mirav H. Gandhi (all Manichi Trust reg.), Chandrakant Ishwarlal Gandhi, Rajesh Chandrakant Gandhi, Viraj Chandrakant Gandhi, Dhanalaxmi Chandrakant Gandhi (all Ruvisha Trust reg.), Arunkumar Ramniklal Mehta, Harshad Ramniklal Mehta (both Dainese Stiftung and Dryade Stiftung), K.M.Mammen (Webster Foundation), Arun Kochhar (Urvashi Foundation) and Ashok Jaipuria (Raj Foundation).
