NEW DELHI // India’s supreme court on Wednesday decided not to make public any names on a list of 627 Indians holding untaxed, or black money, in overseas bank accounts.
But the respite is fleeting. The court has also directed a special investigation team looking into these illegal black money accounts to submit a status report by the end of November.
In a process that has been ongoing since 2011, when the supreme court began asking for disclosures of information from the government's investigations into black money, the next hearing has been scheduled for December 3.
The names, which were submitted to the court by the government in a sealed envelope on Wednesday, have also been passed on to other investigating agencies and the income tax department.
The court’s directive has lent impetus to an issue that has roiled Indian politics since the tenure of the previous Congress-led government. Plagued as it was by corruption cases during its tenure in power, the party laid itself open to the accusation that it was not acting decisively enough in investigating illegal overseas accounts.
Public anger over corruption fuelled political and media debate over black money. Corrupt politicians and tax-evading businessmen had salted away billions, perhaps even trillions, of dollars abroad, according to popular perception.
Earlier this year, during his election campaign to be prime minister, Narendra Modi had railed against the Congress on this issue, promising to “bring back” black money and pour it into welfare schemes.
“Should this money, stolen from us, return to us or not?” Mr Modi said in a speech in January. “If we could bring back the money stashed by these thieves and looters in foreign banks, we could even give out 150,000 or 200,000 to every poor person in this country.”
“The day the Bharatiya Janata Party wins power, every rupee will be brought back to India and used to benefit the poor,” he added.
Since black money is held in secret tax-haven accounts overseas, there is no reliable figure for how much money Indians have in such accounts.
Estimates vary wildly. R Vaidyanathan, a professor of finance at the Indian Institute of Management in Bengaluru, has come up with the highest estimate: $1.4 trillion (Dh5.14 trillion), based on published literature about illicit outflows of money.
But an estimate by Global Financial Integrity, a Washington, DC-based research institute, says that roughly $213 billion of untaxed funds — $462bn in today’s money, according to the institute’s conversion — left India between 1948 and 2008. In 2011, a report by the Swiss National Bank, in a first-ever disclosure of this kind, said that Indian citizens held only $2.1bn in savings and deposits in Switzerland.
The list handed over to the Supreme Court is, in itself, not new, as the chair of the special investigation team, M B Shah, told the CNN-IBN television channel on Wednesday. Containing the names of 627 Indians who had accounts with an HSBC subsidiary in Geneva in 2006, the list was handed to the Indian government by the French government in 2011.
The French government, in turn, had come into possession of it after the information had been stolen from HSBC by a former employee.
Mr Shah’s team was formed in 2011, as well, at the insistence of the supreme court. That year, the court asked that the government fully disclose its information on Indians holding black money overseas.
But the congress-led government argued that such disclosures could place it in violation of international tax treaties and confidentiality norms, and that its own agencies, rather than the court-nominated team, ought to conduct these investigations.
Only this June, after Mr Modi came to power, did the new government divulge part of the list to the special investigation team.
Mr Modi’s government has also maintained that it should only make public the names of account holders whom it can prosecute, and that it is bound by international conventions to safeguard some confidentiality norms.
On Tuesday, the court, impatient with the government’s stance, demanded that the full list of 627 names be handed to it, to be passed on to its investigation team.
“Why are you trying to protect people having illegal bank accounts in foreign countries?” a three-judge bench demanded of the attorney general, Mukul Rohatgi. “Why are you providing a protective umbrella for all these people?”
On Monday, however, the government did reveal the names of eight people on the list against whom prosecution proceedings have been initiated. The most well-known among them was the industrialist Pradip Burman, of the Dabur India group. The others included a bullion trader in the Gujarati town of Rajkot and the members of a family-owned Goa-based mining concern.
Mr Rohatgi told the supreme court on Wednesday that an undisclosed number among the list of 627 had agreed to pay back taxes and penalties for hiding their income.
Any punitive or legal action that Mr Modi’s government is able to initiate against tax absconders will benefit the prime minister’s image. He has promised repeatedly to be tough on corruption, and walking this talk is expected to burnish his image.
But it remains unclear how, and how much, black money can be repatriated to India, as Mr Modi promised to do.
The focus on untaxed money stashed abroad also distracts from the volumes of black money held within India.
A lot of untaxed cash is pumped into real estate in and around India’s biggest cities, for example. Although there are no reliable estimates for these amounts either, they may well rival some of the approximations of black money overseas, according to analysts.
“If you have 10 businessmen who occasionally want to get rid of black money, you can build an apartment building,” said Gautam Bhan, a senior consultant at the Indian Institute for Human Settlements in Bengaluru.
“You buy and resell and buy and resell until you can launder the money, turn black into white.”
ssubramanian@thenational.ae
Correspondents
By Tim Murphy
(Grove Press)
WE NO LONGER PREFER MOUNTAINS
Director: Inas Halabi
Starring: Nijmeh Hamdan, Kamal Kayouf, Sheikh Najib Alou
Rating: 4/5
Confirmed bouts (more to be added)
Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez
Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
Zayed Sustainability Prize
JAPANESE GRAND PRIX INFO
Schedule (All times UAE)
First practice: Friday, 5-6.30am
Second practice: Friday, 9-10.30am
Third practice: Saturday, 7-8am
Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday
Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
Watch live: beIN Sports HD
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
Bombshell
Director: Jay Roach
Stars: Nicole Kidman, Charlize Theron, Margot Robbie
Four out of five stars
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 + VAT and Dh166,464 + VAT
On sale: now
THE SPECS
Battery: 60kW lithium-ion phosphate
Power: Up to 201bhp
0 to 100kph: 7.3 seconds
Range: 418km
Price: From Dh149,900
Available: Now
Coffee: black death or elixir of life?
It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?
Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.
The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.
The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.
Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver.
The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.
But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.
Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.
It also raises blood pressure, which is largely problematic for people with existing conditions.
So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.
Rory Reynolds
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
RESULTS
Bantamweight: Victor Nunes (BRA) beat Azizbek Satibaldiev (KYG). Round 1 KO
Featherweight: Izzeddin Farhan (JOR) beat Ozodbek Azimov (UZB). Round 1 rear naked choke
Middleweight: Zaakir Badat (RSA) beat Ercin Sirin (TUR). Round 1 triangle choke
Featherweight: Ali Alqaisi (JOR) beat Furkatbek Yokubov (UZB). Round 1 TKO
Featherweight: Abu Muslim Alikhanov (RUS) beat Atabek Abdimitalipov (KYG). Unanimous decision
Catchweight 74kg: Mirafzal Akhtamov (UZB) beat Marcos Costa (BRA). Split decision
Welterweight: Andre Fialho (POR) beat Sang Hoon-yu (KOR). Round 1 TKO
Lightweight: John Mitchell (IRE) beat Arbi Emiev (RUS). Round 2 RSC (deep cuts)
Middleweight: Gianni Melillo (ITA) beat Mohammed Karaki (LEB)
Welterweight: Handesson Ferreira (BRA) beat Amiran Gogoladze (GEO). Unanimous decision
Flyweight (Female): Carolina Jimenez (VEN) beat Lucrezia Ria (ITA), Round 1 rear naked choke
Welterweight: Daniel Skibinski (POL) beat Acoidan Duque (ESP). Round 3 TKO
Lightweight: Martun Mezhlumyan (ARM) beat Attila Korkmaz (TUR). Unanimous decision
Bantamweight: Ray Borg (USA) beat Jesse Arnett (CAN). Unanimous decision
COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
UAE FIXTURES
Wednesday 19 April – UAE v Kuwait
Friday 21 April – UAE v Hong Kong
Sunday 23 April – UAE v Singapore
Wednesday 26 April – UAE v Bahrain
Saturday 29 April – Semi-finals
Sunday 30 April – Third position match
Monday 1 May – Final
At Eternity’s Gate
Director: Julian Schnabel
Starring: Willem Dafoe, Oscar Isaacs, Mads Mikkelsen
Three stars
UAE currency: the story behind the money in your pockets
SUCCESSION SEASON 4 EPISODE 1
Created by: Jesse Armstrong
Stars: Brian Cox, Jeremy Strong, Kieran Culkin, Sarah Snook, Nicholas Braun
Rating: 4/5
The specs: 2018 Mercedes-Benz GLA
Price, base / as tested Dh150,900 / Dh173,600
Engine 2.0L inline four-cylinder
Transmission Seven-speed automatic
Power 211hp @ 5,500rpm
Torque 350Nm @ 1,200rpm
Fuel economy, combined 6.4L / 100km
The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
WHAT IS THE LICENSING PROCESS FOR VARA?
Vara will cater to three categories of companies in Dubai (except the DIFC):
Category A: Minimum viable product (MVP) applicants that are currently in the process of securing an MVP licence: This is a three-stage process starting with [1] a provisional permit, graduating to [2] preparatory licence and concluding with [3] operational licence. Applicants that are already in the MVP process will be advised by Vara to either continue within the MVP framework or be transitioned to the full market product licensing process.
Category B: Existing legacy virtual asset service providers prior to February 7, 2023, which are required to come under Vara supervision. All operating service proviers in Dubai (excluding the DIFC) fall under Vara’s supervision.
Category C: New applicants seeking a Vara licence or existing applicants adding new activities. All applicants that do not fall under Category A or B can begin the application process through their current or prospective commercial licensor — the DET or Free Zone Authority — or directly through Vara in the instance that they have yet to determine the commercial operating zone in Dubai.
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
Tu Jhoothi Main Makkaar
Director: Luv Ranjan
Stars: Ranbir Kapoor, Shraddha Kapoor, Anubhav Singh Bassi and Dimple Kapadia
Rating: 3/5
ABU DHABI'S KEY TOURISM GOALS: BY THE NUMBERS
By 2030, Abu Dhabi aims to achieve:
• 39.3 million visitors, nearly 64% up from 2023
• Dh90 billion contribution to GDP, about 84% more than Dh49 billion in 2023
• 178,000 new jobs, bringing the total to about 366,000
• 52,000 hotel rooms, up 53% from 34,000 in 2023
• 7.2 million international visitors, almost 90% higher compared to 2023's 3.8 million
• 3.9 international overnight hotel stays, 22% more from 3.2 nights in 2023
Final scores
18 under: Tyrrell Hatton (ENG)
- 14: Jason Scrivener (AUS)
-13: Rory McIlroy (NIR)
-12: Rafa Cabrera Bello (ESP)
-11: David Lipsky (USA), Marc Warren (SCO)
-10: Tommy Fleetwood (ENG), Chris Paisley (ENG), Matt Wallace (ENG), Fabrizio Zanotti (PAR)
Klopp at the Kop
Matches 68; Wins 35; Draws 19; Losses 14; Goals For 133; Goals Against 82
- Eighth place in Premier League in 2015/16
- Runners-up in Europa League in 2016
- Runners-up in League Cup in 2016
- Fourth place in Premier League in 2016/17
French Touch
Carla Bruni
(Verve)
The specs: Lamborghini Aventador SVJ
Price, base: Dh1,731,672
Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
Fast X
Director: Louis Leterrier
Stars: Vin Diesel, Michelle Rodriguez, Jason Statham, Tyrese Gibson, Ludacris, Jason Momoa, John Cena, Jordana Brewster, Nathalie Emmanuel, Sung Kang, Brie Larson, Helen Mirren and Charlize Theron
Rating: 3/5
On racial profiling at airports
SPEC SHEET: APPLE IPAD (2022)
Display: 10.9-inch Liquid Retina IPS LCD, 2,360 x 1,640, 264ppi, wide colour, True Tone, Apple Pencil 1 support
Chip: Apple A14 Bionic, 6-core CPU, 4-core GPU, 16-core Neural Engine
Storage: 64GB/256GB
Platform: iPadOS 16
Main camera: 12-megapixel wide, f/1.8, 5x digital, Smart HDR 3
Video: 4K @ 24/25/30/60fps, full HD @ 25/30/60fps, slo-mo @ 120/240fps
Front camera: 12MP ultra-wide, f/2.4, 2x, Smart HDR 3, Centre Stage; full HD @ 25/30/60fps
Audio: Stereo speakers
Biometrics: Touch ID
I/O: USB-C, smart connector (for folio/keyboard)
Battery: Up to 10 hours on Wi-Fi; up to 9 hours on cellular
Finish: Blue, pink, silver, yellow
In the box: iPad, USB-C-to-USB-C cable, 20W power adapter
Price: Wi-Fi — Dh1,849 (64GB) / Dh2,449 (256GB); cellular — Dh2,449 (64GB) / Dh3,049 (256GB)