Black money: Government submits list of account holders to Supreme Court in a sealed envelope

NEW DELHI: The Supreme Court got 627 names in a sealed envelope from the government on Wednesday, having insisted on being given the list the previous day. It then handed this list of account holders in HSBC, Geneva, to the special investigation team (SIT) that’s been set up to inquire into black money. Those names, however, have already been in the SIT’s possession since June end, when it got them from the government.

Attorney general Mukul Rohatgi sought to ensure that secrecy rules related to bilateral accords, under which the information has been obtained, aren’t broken. "According to the term of the treaties, there is a clause of confidentiality. I only request that nothing should be done to impede information from these countries,"he said. The bench did not make the names public, merely noting that the information was handed over by the government "voluntarily."

"We do not intend to open it. Now that we have the names, we will send it to the SIT to proceed as per the law. The SIT will evolve its own procedure to hand it over to the IT, CBI etc.,"said chief justice of India HL Dattu, who heads the special bench that also comprises justices Ranjana P Desai and Madan B Lokur.

The muted tone of proceedings was in contrast with the heated nature of arguments on Tuesday, when the government sought unsuccessfully to get the court to relent on passing on the names. The SIT comprises MB Shah and Arijit Pasayat, both former judges of the top court. The names that have been passed on will only be seen by them, the bench said.

The court directed the SIT to submit a report to the court by November end on the progress of its probe. At the start of the hearing, Rohatgi said the government did not "intend to hide or save anybody". But he did say the information had already been handed over to the SIT on June 27. Shah was also cited by a television channel as saying that there was nothing new in the list given to the Supreme Court on Wednesday.

"We are working under the direct supervision of the SIT,"he said. Three items were handed over--correspondence with the French authorities, the full list of 627 account holders and a status report by the SIT. The list of account holders dates back to 2006 and was provided by the French authorities. The account details were allegedly stolen by a disgruntled employee and came into the possession of the tax authorities there.

the French authorities, the full list of 627 account holders and a status report by the SIT. The list of account holders dates back to 2006 and was provided by the French authorities. The account details were allegedly stolen by a disgruntled employee and came into the possession of the tax authorities there.

the French authorities, the full list of 627 account holders and a status report by the SIT. The list of account holders dates back to 2006 and was provided by the French authorities. The account details were allegedly stolen by a disgruntled employee and came into the possession of the tax authorities there.

"A big economic worry is the US government’s withholding tax (30%) on remittances by Indian residents there,"unless India signed an agreement on automatic exchange of information with that country by the year end, Rohatgi said. "Also on banks, LOIs (letters of intent) are often routed through the US."

Dattu made the court’s position clear. "The problem started because you sought a modification of (an earlier) order (asking the government to provide the information). We have placed our faith in the SIT, authorised them to recover the money. You can tell the SIT not to disclose the names. Go to the SIT. Explain these problems.

"Rohatgi said the government had "misunderstood"the court order and agreed to flag these issues before the SIT. The bench also permitted petitioner Ram Jethmalani, to place his concerns over before the SIT.

Jethmalani was a BJP member when he filed the PIL but is no longer associated with it. Jethmalani said double-taxation agreements were a "fraud"on the nation and should be stopped. He said he would inform the SIT of his views.

The court didn’t allow Aam Aadmi Party chief Arvind Kejriwal to pursue his application calling for an inquiry into people and entities that he said may have black money holdings.

The SIT was set up by the court in July 2011 but the UPA government had rejected it and sought a review of the order, saying it would function as a super cop contrary to the normal criminal investigative machinery and procedures. The court had rejected its plea. The Modi government constituted it immediately after taking over at the end of May.