No data available on offshore shell companies owned by Indians: MoS Finance in Rajya Sabha
Mukesh Ranjan
New Delhi, March 27
At a time when Congress leader Rahul Gandhi has gone for an all-out attack against the Central Government in view of alleged financial irregularities committed by the Adani Group, Minister of State (MoS) for Finance Pankaj Chaudhary has informed the Rajya Sabha recently that data or details regarding “offshore shell companies owned by Indian citizens are not available and an offshore shell company is not defined in the Acts administered by the Ministry of Finance”.
Replying to a written question asked by Rajya Sabha member John Brittas seeking to know the details of offshore shell companies and their Ultimate Beneficial Ownership (UBO) by Indian citizens, Chaudhary said, “It is submitted that an offshore shell company is not defined in the Acts administered by the Ministry of Finance. Data/details regarding offshore shell companies owned by Indian citizens are not available.”
Later, reacting to the development senior Congress leader Jairam Ramesh in a tweet said, “June 8 2018: Govt issues press release on activities of Task Force on Shell Companies calling them a ‘menace’. March 21 2023: Govt answers in Rajya Sabha that there is no definition of shell company & that it has no information.”
In the press release on June 8, 2018, the government had said, “Task Force on Shell companies takes proactive and coordinated steps to check the menace of shell companies. During the financial year 2017-18 ROCs (Registrar of Companies) identified and removed from the register of companies the names of 2, 26, 166 companies; 3,09,619 directors disqualified.”
However, the Minister in his reply said, the government has undertaken a few exchanges of information mechanisms for the administration of taxation and enforcement laws for various purposes, which may include offshore companies.
Chaudhary also said that “the Directorate of Enforcement takes necessary action as per the provisions of the relevant Acts whenever there is any contravention under FEMA, and an offense under PMLA, or a warrant of arrest is issued by the Magistrate or Court after taking cognizance of any offense appended to Fugitive Economic Offenders Act, 2018 (FEOA) and where the amount involved is Rs 100 crores or above, provided the accused has gone outside India”.
On the question relating to the government’s action taken against those Indian citizens whose names were revealed through Panama Paper, Pandora Paper, Paradise Paper, and other leaks, the Minister said that more than 250 India-linked entities have been identified in Pandora Paper Leaks. It also stated that undisclosed income of more than Rs 13,800 crore has been brought to tax (as on December 31, 2022) under the Panama and Paradise paper leaks cases.
On deposits made in unreported foreign bank accounts in HSBC cases, Chaudhary said that undisclosed income of more than Rs 8,468 crore has been brought to tax, and a penalty of over Rs 1,294 crore has been levied. “As of 31.12.2022, assessments under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 have been completed in 408 cases, raising a tax demand of over Rs 15,664 crores,” he said.
