Government negotiating information exchange agreements with some tax havens: Sources

MUMBAI: As Indian investigation agencies hit a roadblock in investigations regarding black money the government is looking to sign information exchange agreements with some of these countries.

According to people in the know, India has been negotiating such deals with a middle-east country and two other Asian countries. The agreements could mean that Indian investigation agencies may be able to get hold of financial details of some Indians who may have left India or have bank details in such countries.

The investigations could be mainly in context of either tracing assets of promoters of companies that are categorised as non-performing assets or money kept in bank accounts outside India on which tax is not paid in the country. India has already signed such an agreement with Switzerland following which a list of bank account holders was shared with domestic investigation agencies. India has also signed FATCA whereby India and US would share details of their respective citizens' wealth in other's country.

Many banks that have large non-performing assets on their balance sheets are also roping in private investigators to trace assets of promoters of defaulting companies. Banks are also hoping that the recent regulations could see some investments in stressed assets by some stressed asset funds.