India names first 3 in crackdown on tax evasion, laundering

Pradip Burman, former Executive Director of Dabur group, Pankaj Chimanlal Lodhiya, a Rajkot-based bullion trader and Radha S Timbola, a Goa-based miner, feature in the federal government’s much awaited list of black money account holders. The trio have been charged under various sections of the Income Tax Act and the Money Laundering Act.

Apparently, there are 138 people on the government’s list of people who have funds stashed away in foreign banks. Attorney General Mukul Rohatgi is reported to have submitted a supplementary affidavit in the apex court detailing plans to submit the list of names in a sealed envelope.

In its affidavit, the government told the apex court that it would not be able to reveal all names unless they are prosecuted. The government told the court that it has no intention of withholding names — and names would be revealed in cases where tax evasion was established. The hearing in the case will take place tomorrow.

 “Every foreign account held by an Indian may not be illegal and names cannot be disclosed unless there is prima facie evidence of wrongdoing,” the affidavit stated.

In the recent election campaign, the Bharatiya Janata Party (BJP) had promised to bring back illicit funds kept by Indians in overseas banks while criticising the previous United Progressive Alliance (UPA) government for not taking effective action on the issue.

In a statement, Dabur — a company with interests in hair care, oral care, skin care, health care and food products — said Burman’s account is legal and that “it is unfortunate that every foreign account holder is being painted with the same brush.”

“We wish to state that this account was opened when [Pradip] was a Non Resident Indian, and was legally allowed to open this account. We have followed all the laws and the complete details regarding the account have been voluntarily, and as per law, filed with the Income Tax Department, and appropriate taxes paid, wherever applicable. The Burman family is committed to the highest standards of corporate governance, and encourage ethical behaviour at all levels,” a Dabur spokesperson said in a statement.

Pradip Burman currently holds no position in the company but he had served as a director.

Rajkot-based Pankaj Chimanlal Lodhiya said he was shocked to see his name on the list of black money account holders. Lodhiya is the promoter of Shheerji Trading Company.

“I am shocked that the government named me. I do not have a Swiss account. I have declared all assets and I have not been served any notice. I am getting to know about the proceedings against me from the media. I will reply to the Supreme Court accordingly,” Lodhiya told Gulf News.

BJP official Sambit Patra lauded the federal government’s decision to reveal the names saying, “today is a historic day in the black money case, the process of disclosure of names has started.”

Congress, which has been under fire for not acting on black money during its regime, hit back at the BJP government for the “selective revelation” of names. Party general secretary Digvijaya Singh challenged the BJP to name any Congress leader with an illegitimate account abroad.

The Supreme Court has been monitoring the investigations into black money since 2009, based on a petition by lawyer Ram Jethmalani. The government has two lists that it is dealing with — the first is of Indian account-holders in Lichtenstein; the other is of citizens who banked with HSBC in Switzerland. The Supreme Court has created a special team to draw up a blueprint for the recovery of black money. Agencies