Every account held in a foreign country may not be illegal: Centre

The Centre on Monday disclosed in the Supreme Court that Pradip Burman of Dabur, Rajkot-based bullion trader Pankaj Chimanlal Lodhiya and Goa-based mining baron Radha Satish Timblo of Timblo Private Ltd. were among those who had stashed black money abroad.

Other Directors of Timblo — Chetan S. Timblo, Rohan S. Timblo and Mrs. Mallika R. Timblo were also named in the affidavit, ahead of the hearing on Tuesday.

While disclosing these names, the Centre sought modification of the May 1 apex court order to disclose all names of foreign account holders and pleaded that only those names against whom investigations had been completed and prosecution launched, should be disclosed. The court must consider whether in directing the disclosure of all names, international standards had been violated, the Centre said.

Stating that the disclosed names were received from French tax authorities and prosecution had been launched against them under the provisions of the Income Tax Act, the Centre’s affidavit said, “The government is committed to disclose names of persons holding illegal money abroad. However, every account held by an Indian in a foreign country may not be illegal and the fundamental right of citizens to privacy under Article 21 of the Constitution cannot be ignored.”

The Centre argued that under the Double Taxation Avoidance Agreement, confidentiality had to be maintained.

What they said: