Find sources, bring back black money: Apex court tells Govt

Fearing that black money stashed in foreign banks could be the proceeds of crime and arms deals, Supreme Court on Thursday asked the government to ascertain its source instead of just looking at the problem from a tax evasion angle. HT reports.

Fearing that black money stashed in foreign banks could be the proceeds of crime and arms deals, Supreme Court on Thursday asked the government to ascertain its source instead of just looking at the problem from a tax evasion angle.

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Questioning solicitor general Gopal Subramanium about action taken against those who'd illegally parked their money abroad, the court directed the government to file a detailed report by Thursday. It was hearing a petition filed by former law minister Ram Jethmalani and other prominent citizens.

Observing that those on the list of alleged tax offenders were Indians amenable to Indian law, the court asked: "What steps have you taken? Have you set the law in motion?"

Subramanium told the court the government was taking all possible steps under the Double Taxation Avoidance Agreement and investigations were on.

However, terming it a "serious matter", the court said: "You know the names, where the money is lying, still you're just talking about double taxation issue… Why are you looking only at tax evasion issue… That is the most dangerous part of the story. Have you done anything?"