Ban Indians from acquiring shell cos: CPI(M) on Panama Papers

  • PTI, New Delhi
  • Updated: Apr 08, 2016 14:54 IST
View of a sign outside the building where Panama-based Mossack Fonseca law firm offices are in Panama City, on April 4, 2016. (AFP)

CPI(M) on Friday demanded “blanket prohibition” on Indians acquiring shell companies, claiming the NDA Government will “only scratch surface” by its proposed action in Panama papers case and is “unwilling” to touch structure of tax havens and generation of black money.

Former party general secretary Prakash Karat also demanded that the Centre confiscate illegal money and assets of those named in the Panama list, if it is “serious” about cracking down on black money, tax evasion and money laundering.

Karat though claimed the BJP Government “will not dare” take such action as the whole system of international finance capital is “intertwined” with elaborate structure of tax havens and shell companies.

To drive his point, he alleged it was the previous NDA Government which had “opened up Mauritius route” for financial investments from abroad “which has become a big source for money laundering and round tripping”.

“The action proposed to be taken on Panama Papers further confirms the Modi Government will only scratch the surface and is unwilling to touch the structure of tax havens, money laundering and the generation of black money,” Karat said.

He added, “If Modi government is serious about cracking down on black money, tax evasion and money laundering, then it should impose a blanket prohibition on Indians acquiring shell companies and operating secret accounts in tax havens. This is apart from confiscating illegal money and assets of those in the Panama list.”

Karat made the remarks in the editorial of forthcoming issue of party mouthpiece ‘People’s Democracy’.

On Union Finance Minister Arun Jaitley’s remarks that such exposures will help Government crackdown on illegally money kept abroad, Karat cast doubts saying the Modi dispensation’s track record inspires “no confidence” in this regard.

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