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    Banks, financial institutions to face action under new black money law: Shaktinkanta Das

    Synopsis

    The comments assume significance in view of the charges being faced by HDFC in India and elsewhere for allegedly helping in black money parking.

    PTI
    NEW DELHI: Banks and other financial institutions will also face action under the new black money law if they are found to have abetted stashing of illicit wealth, along with the action against the perpetrators and beneficiaries of this crime.

    The new law will not only target the perpetrator of the crime, for holding or generating black money, but also the "arbitrator, the abettor and the beneficiary", revenue secretary Shaktinkanta Das said on Wednesday.

    The comments assume significance in view of the charges being faced in India and elsewhere by UK-based multinational bank HSBC for allegedly helping individuals in parking ill-gotten wealth in Switzerland. "The new legislation will deal with perpetrators of the offence of black money, as also the abettor and the beneficiary," he said, adding that the perpetrators could be individuals or institutions while abettors could be banks or financial institutions.

    The law will provide for hefty penalties and imprisonment of up to ten years.
    Speaking at an event organised by industry body Assocham, Das said that the black money law will be a very comprehensive piece of legislation, but added that the intention is not to create an environment of fear. "We would expect our banks and financial institutions to be very responsible....If we find there is an element of abetment provided by these institutions, naturally, that will attract provisions of the law," he said.

    The revenue secretary added, "We want to have a non-adversarial tax administration."


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    ( Originally published on Mar 04, 2015 )
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