Jethmalani objects to giving pol colour to PIL on black money

New Delhi, May 4 (PTI) Noted jurist Ram Jethmalani Monday
raised objections to government's attempt to give a political
colour to the PIL on the issue of black money stashed in
foreign banks by linking it with BJP and told the Supreme
Court of India that illicit funds parked in banks abroad could
be used for funding terror activities.

"Illicit funds from India parked in foreign banks and
foreign tax havens could be used for funding terrorists and
subversive activities," Jethamalani and five others, who have
filed Public Interest Litigation (PIL) on the issue, said.

They criticised the government for failing to meet the
48-hour deadline promised on April 22 in filing the affidavit
in which it challenges their bonafides and insinuates that the
petitioners' motive is not very clear and attempts to link
them with Bharatiya Janata Party (BJP).

"They are independent Indian citizens and have no contact
with the BJP or any other political party but are
distinguished citizens in their own field," senior advocate
Anil Divan said before a Bench headed by Chief Justice K G
Balakrishnan.

Divan placed before the Bench a four-page written
submission on the issue of illegal money stashed in foreign
banks and referred to the statements of National Security
Adviser M K Narayanan at a conference on security in Munich,
Germany on February 11, 2008 where he spoke about the
"isolated instances of terrorist oufits manipulating the stock
market to raise funds for their funds have been reported".

Divan said the N N Vohra Committee report in 1993 had
sounded alarm about linkages between hawala transactions and
subversive activities and recommended the formation of a nodal
agency.

However, Additional Solicitor General Gopal Subramanium
said the entire petition and written submissions are based on
media and web reports and it should not be entertained.

He said the government was alive to the situation and it
would be wrong to say that actions have not been taken.

However, without issuing notice, the Bench, also
comprising Justices P Sathasivam and M K Sharma, said
"government has to file a response" to the PIL and written
submissions made by the petitoners.

"The prayer in the petition is to disclose the relevant
facts," the Bench said adding "another prayer is why action
has been not taken under the Money Laundering Act".

The Bench posted further hearing on issue on July 20 (Ed
correct) granting time to the petitioner to file rejoinder to
the affidavit filed by the governement on May 2. It said the
Centre could also respond to the written submissions made by
the petitioner.

While questioning the contents of the affidavit, Divan
said the government had used the word "alleged deposits"
which is directly contrary to everyone's perception and
knowledge including that of the Indian Prime Minister Manmohan
Singh.

The senior advocate referred to the interview of the
Prime Minister in a national daily recently in which he said
that a new priority to his 100-day "to do" list is bringing
back money stashed in tax havens abroad by taking whatever
steps required.

Besides Jethmalani, five others, including former Punjab
Director General of Police (DGP) K P S Gill and former
Secretary General of Lok Sabha Subhash Kashyap, who are
petitioners, alleged the government was protecting powerful
individuals.

The affidavit filed by the government has not dealt
with the facts that there was a fake passport case against
Pune-based businessman Hasan Ali Khan and investigations
relating to money laundering were also being undertaken
against him and that he was involved in transactions with
Saudi Arabian arms dealer Adnan Khashoggi.

Pointing out various alleged inactions against Khan
who allegedly has stashed money in a Swiss Bank, the
petitioners in written submissions said "is it not
unreasonable to infer that the government is interested in
protecting powerful individuals who may be using Khan and his
wife as their nominee/benamidar".

Further, Diwan said, "the most important factor is that
not even a single individual has been apprehended or
interrogated by the government in the last five years in
relation to money laundering and slush funds from illicit
funds, parked abroad."

Jethmalani and others raised question that when income
tax notice raising a demand of Rs 71,848 crore was made
against Khan why the source of money of such a large amount
was not investigated under the Prevention of Money Laundering
Act.

The PIL assumes importance as BJP's prime ministerial
candidate L K Advani besides Left parties and others have been
pressing the government to approach the foreign banks for
bringing back the black money.

The petition sought a direction to the Centre to take up
with the foreign banks, particularly the UBS Bank of
Switzerland, the issue of freezing of accounts of Indian
businessmen, politicians and other influential persons
illegally holding their assets in such financial institutions.

The six petitioners had submitted that if the Rs 70 lakh
crore, purportedly stashed in foreign banks, are retrieved it
would substantially remove poverty in the country and promote
its development.

In the 29-page affidavit, the government had said it has
received information about Indian account holders in a German
Bank but did not reveal the names on grounds of
"confidentiality".

The Ministry of Finance, in the affidavit, said the
German government made available the information after
persistent follow-up since February 2008 "on condition of
strict confidentiality of contents under the Double Taxation
Avoidance Agreement (DTAA)." PTI