MANOHAR LAL SHARMA Vs. CENTRALBUREAU OF INVESTIGATION

JUDGEMENT

(1.) WRIT PETITION (CRL.) NO.65 OF 2016

(2.) Averments in the petition are that "Panama Paper Leaks" report (which refers to information relating to tax evasion by some individuals/entities by way of offshore bank accounts/business to evade tax. International Consortium of Investigation Journalists (ICIJ) posted the documents on its website.) have not been acted upon by the concerned authorities, particularly the SEBI resulting in serious financial loss to the general public and protection of black money hoarders. Reference has been made to certain individuals who are said to be having offshore undisclosed bank accounts and who have manipulated the capital market. It is alleged that the SEBI has failed to perform its functions as capital market regulatory. The black money kept in foreign accounts can be used to facilitate terrorism, money laundering, tax evasion, corruption, crimes etc. Funds of the offshore accounts are circulated in Indian stock market via participatory notes. The Special Investigation Team(SIT) on black money constituted by this Court vide order dated 4th July, 2011 in Writ Petition (Civil) No.176 of 2009 has revealed various transactions. The report shows failure of the SEBI in doing its statutory duty. The petition refers to newspaper reports as the main source of information.

(3.) Counter affidavit has been filed by the Ministry of Finance and Economic Affairs stating that the Government has constituted a Multi Agency Group (MAG) consisting of officers of the Central Board of Direct Taxes (CBDT), Reserve Bank of India (RBI), Enforcement Directorate (ED), and Financial Intelligence Unit (FIU). Member (Investigation) CBDT is the convener of the MAG. MAG is to ensure speedy and coordinated investigation in the cases of persons whose names have appeared in "Panama Paper Leaks". The MAG is monitoring the progress of various investigating agencies. Till the filing of the affidavit dated 27th Sept., 2016, six reports had been submitted to the MAG. The SIT on black money constituted by this Court was regularly updated on such issues. Holding of offshore bank accounts is regulated by Notification dated 21st Jan., 2016, Indian residents can open offshore accounts only with the general or special permission of the RBI. Further reference has been made to policies and orders issued in this regard. Investigation of Indian foreign assets/bank accounts has been conducted and is still being conducted.