While the shrieking and the name and shame game over names being unearthed for stashing black money will go on with television having a field day, it remains to be seen whether this is just a trailer for more names to be unveiled, especially of Goan politicians, and mine owners, or is it a big damp squib. The question that needs to be asked is, if it is just 3 out of 700 names, is it really a big money trail revelation? If the names have really been in circulation with the government for six years, is it likely that those who had parked their funds will let them remain there knowing clearly that the government is hot on their trail? And what if many of these cases have been “settled”, either through official channels or otherwise, the latter being more likely?
In 2006, Indian money parked in Swiss banks was around Rs 41,400 crore. By 2008 the money came down to Rs 15,000 crore, reducing further by another Rs 1000 crores by 2013. The remaining money, could also be legit money.
There is also an indication that a lot of this money could have been brought back to India in the form of gold. According to moneycontrol.in, a portal that closely studies the financial markets, “gold imports from Switzerland to India have reached record high this year, being over 11 billion Swiss francs. In September alone, gold worth 2.2 billion has been brought into India. This scenario seems parallel to the time when Swiss banks are introducing conditions on their Indian clients, in an attempt to ‘de-risk’ themselves. Banks operating in Switzerland and those headquartered in Switzerland have lately asked their Indian clients to sign undertakings to take responsibility of any risks arising out of any regulatory actions against them by foreign governments”
The big ask therefore is what is really left there and did the UPA government deliberately leave it too late for things to be “settled”.
Having said that, not withstanding all of the above, the name of a Goan mine owner Radha Timblo of Timblo Pvt Ltd in the first three persons named in the ‘trial” will be a body blow to the mining sector, whose reputation has already reached its nadir. Without going into the specifics, the perception game of mine owners making illegal money and stashing them in Swiss banks will move from dining table debates to dining table conclusions.
What Goa would like to see is different. The investigations against mining companies and traders by the Enforcement Directorate and SIT has been propelled clearly by the Shah Commission report were Under Invoicing of exports has been highlighted along with a clear recommendations that this needs to be investigated by the Enforcement Directorate and the IT. That process has been started with most mining companies having received ED notices. Now if ED establishes that Under Invoicing was used clearly to make black money by showing a lower price for ore exports and that money stashed in Swiss banks, only then will the exercise be meaningful. There is a universe of mining companies and traders who should be under the scanner and this investigation need not necessarily lead to the Swiss banks, but to a black money trail, which is good enough.
The only reason why Radha Timblo’s name being included in the first three in the affidavit, is being linked to illegal mining in Goa, is because the same firm Timblo Private limited was among those named in the Shah Commission report for under invoicing and violations of Rule 37 of the MCR rules, for running operations on the basis of a power of attorney of a deceased Pakistani national.
It should also be noted that names of several politicians including ministers, and if certain confidential information is correct, two former Chief Ministers, are there in the long list of people with accounts in the Swiss banks. These amounts need to be still there, and if there, have to be accounted for by these politicians. If indeed the investigations lead to the naming, shaming and above all punishing of these entities, we will consider it a job well done. Right now we have seen a tiny trailer and do not know how this movie will play out.
