Black money: Prosecution proceedings likely to fail

NEW DELHI: Prosecution proceedings initiated against those who allegedly stashed money abroad may fail as foreign banks refused to authenticate or verify their accounts and statements. After filing prosecution applications in court, the tax department sent revised requests to Swiss banks to authenticate accounts that it believed were held by Indians, a senior tax official told ET.

The requests were turned down because the banks insisted on "independent evidence" of individuals having committed fraud or owning accounts in their banks, the official said. Swiss banks have repeatedly rejected the department's applications, saying the Indian authorities relied on data made public by those who stole them and did not produce information that was procured properly.