Skip to main content

Information about Black Money seems to be hiding inside a black hole


By Venkatesh Nayak*
During his reply on the Motion of Thanks to the Address of the President of India in the Lok Sabha on 7th February 2018, the Hon’ble Prime Minister, Mr. Narendra Modi compared his Government’s efforts to curb corruption and flush out black money to Swachh Bharat Abhiyan – the nation-wide mission launched to clean up cities, towns, villages and roads, build community toilets and end the practice of open defecation. He drew attention once again to is government’s emphasis on ‘transparency in governance’. Despite the clear signals from the topmost level of the Government, key departments and agencies are failing to abide by this important principle.
The Ministry of Finance and one national public finance institute under its control, have both refused to reveal the research reports on black money in the domestic sector under The Right to Information Act, 2005 (RTI Act). More interestingly, the Black Money SIT has claimed that it does not have a copy of the study reports on the nature and volume of black money in India prepared by at least three academic institutions. Neither the Finance Ministry nor the National Institute of Public Finance and Policy(NIPFP) which also responded to the same information request are on the same page as to why this report cannot be made public. While the Ministry is claiming parliamentary privilege [Section 8(1)(c)] over these reports, NIPFP is taking refuse under a confidentiality agreement it signed with the Finance Ministry.

Response of the Black Money SIT

Readers will recall, in October, 2017 around the 12th anniversary of the RTI Act the Central Information Commission (CIC) declared the Special Investigation Team (SIT) on Black Money, a public authority under the RTI Act in my appeal case. Later in December, upon the prompting of one of my readers, I submitted another RTI application to the Black Money SIT, seeking the following information:
“Apropos of its decision dated 10/10/2017 in the matter of Venkatesh Nayak vs CPIO, C/o Member Secretary, Special Investigation Team on Black Money (Complaint Case No. CIC/DOREV/C/2016/294561-BJ), wherein the Hon’ble Central Information Commission’s was pleased to record its finding that the Black Money SIT is a “public authority” under the RTI Act, I would like to obtain the following information from your office under the RTI Act:
1) A clear photocopy all study reports prepared by the National Institute of Public Finance and Policy, on the subject of “quantum of black money” and received by your office, till date;
2) A clear photocopy all study reports prepared by the National Council of Applied Economic Research, on the subject of “quantum of black money” and received by your office, till date;
3) A clear photocopy of all study reports prepared by the National Institute of Financial Management, on the subject of “quantum of black money” and received by your office, till date;
4) The total number of reports submitted by the Black Money SIT to the Hon’ble Supreme Court of India, till date, along with the title of each report and the date of such submission;
5) A clear photocopy of all reports referred to at para #4 above along with all Annexures.”
Four public authorities related to unearthing black money gave four different replies.
Strangely, the Foreign Tax and Tax Research-I Division of the Central Board of Direct Taxes (CBDT) was the first to respond in January 2018 claiming that the information sought did not pertain to their office. The first three queries were transferred to the Dept. of Economic Affairs and the remaining were sent to the Investigation Division of the Dept. of Revenue. My RTI application was primarily about action taken in India (and not abroad) to inquire or investigate the phenomenon of black money accumulation. It is not clear why the RTI application was transferred to them in the first place.
The Investigation Division-IV of the Dept. of Revenue replied that they are only concerned with investigation of tax evasion petitions and transferred the RTI application to the Investigation Division-I of the same Dept. By this reckoning, perhaps black money has not yet become the subject of any tax evasion petition.
A week later the Central Public Information Officer (CPIO-Ad. ED) of Black Money SIT replied that his office did not have any of the study reports on black money prepared by the NIPFP, NCAER and NIFM. So he transferred that portion of the RTI application to these three institutes. As regards queries 4-5 of my RTI application, the CPIO merely replied that five reports on black money had been submitted to the Hon’ble Supreme Court of India in an ongoing case. He conveniently did not respond to the request for a copy of these reports. So it was neither rejection of the request nor intention to disclose from the office of the Enforcement Directorate (ED) which is one of the constituting elements of the Black Money SIT. Incidentally, the Ed is an exempt organisation under Section 24 of the RTI Act. However, the exemption does not extend to information pertaining to allegations of corruption or human rights violation.
Two days after the Hon’ble PM compared his government’s efforts to flush out black money to Swachh Bharat Abhiyan in the Lok Sabha, the Investigation Wing-I of the Dept. of Revenue claimed that the academic study reports on black money submitted by NIPFP, NCAER and NIFM were covered by parliamentary privilege under Section 8(1)(c) of the RTI Act and hence could not be.
As regards the Black Money SIT reports submitted to the Apex Court, the CPIO claimed that his office did not have a copy and transferred that portion of the RTI application back to the CPIO of Black Money SIT.

NIPFP’s RTI reply

Meanwhile, the NIPFP replied that their report on “Black Money” is a classified document and confidential under the terms of the agreement with the Dept. of Revenue, Ministry of Finance. So it cannot be disclosed under Section 8(1)(a) of the RTI Act. In the matter of Ram Jethmalani & Ors vs Union of India & Ors. (popular as the black money case) the Supreme Court of India had rejected the then UPA Government’s claim that a confidentiality agreement contained in a double tax avoidance treaty with a foreign country should supersede the citizens’ right to know. Public authorities are now citing confidentiality clauses in domestic agreements to reject access to information. There is no such ground under Section 8(1)(a) of the RTI Act either.
So it looks like the Hon’ble PM’s vision of transparency has not penetrated deep enough into the bureaucracy which does not have a consensus view on why the study reports on black money cannot be made public. Instead they are making depsrate efforts to overstretch the exemption clauses to deny access to information.
Even more strange is the claim of parliamentary privilege to withhold access to the academic study reports. According to the proviso under Section 8(1) of the RTI Act, information that cannot be denied to Parliament or a State Legislature cannot be denied to a citizen under the RTI Act. It is not clear how parliamentary privilege will be affected by disclosing an academic study report. NCAER and NIFM are yet to send a reply to the RTI application transferred to them.
So while the NDA’s electoral promise of depositing Rs. 15 lakhs of recovered black money in every citizen’s bank account is long forgotten, detailed information about the action taken to flush out black money is also not available to citizens. Further, not only is the money black, but information about studies undertaken and action taken is also being blackholed.
Meanwhile, as popular theoretical physicist Stephen Hawking demonstrated that black holes have event horizons and some subatomic particles apparently radiate outwards while others are sucked in to oblivion, one of NIPFP’s alleged study reports on black money is accessible on the website of a semi-academic journal. How did it appear there despite the confidentiality agreement is a mystery, perhaps lurking inside another blackhole!

*Programme Coordinator, Access to Information Programme, Commonwealth Human Rights Initiative, New Delhi

Comments

TRENDING

Eight years of empowering tribal communities through water initiatives in Chhattisgarh

By Gazala Paul*   In the heart of Chhattisgarh, amidst the echoes of tribal life, a transformative journey has unfolded over the past eight years. The Samerth organization has diligently worked to elevate the lives of indigenous communities in the Kawardha district through the project, "Enabling Baiga Community to access safe drinking water." 

Towards 2024: Time for ‘We the People of India’ to wake up before it is too late

By Fr Cedric Prakash SJ*  It is Constitution Day once again! We, the people of India, gratefully remember 26 November 1949 when the Constitution of India was passed and adopted by the Constituent Assembly. The Constituent Assembly comprised women and men of distinction, who were able to represent the heart and soul of the people of India without fear or favour. They gave of their best, so that we may a visionary Constitution, which would be the mainstay for and of democracy in India!

Regretful: Kapil Dev retired not leaving Indian cricket with integrity he upheld

By Harsh Thakor  Kapil Dev scaled heights as an entertainer and a player upholding the spirit of the game almost unparalleled in his era. In his time he was cricket’s ultimate mascot of sportsmanship On his day Kapil could dazzle in all departments to turn the tempo of game in the manner of a Tsunami breaking in. He radiated r energy, at a level rarely scaled in his era on a cricket field. Few ever blended aggression with artistry so comprehenisively. Although fast medium, he could be as daunting with the ball as the very best, with his crafty outswinger, offcutter, slower ball and ball that kicked from a good length. Inspite of bowling on docile tracks on the subcontinent, Kapil had 434 scalps, with virtually no assistance. I can never forget how he obtained pace and movement on flat pancakes, trapping the great Vivian Richards in Front or getting Geoff Boycott or Zaheer Abbas caught behind. No paceman carried the workload of his team’s bowling attack on his shoulders in his eras muc

Critical factors that determine, contribute to the success and effectiveness of NGOs

By Rohit Rakshit  Over the last few years, I have been fortunate to work with numerous non-governmental organizations (NGOs) across various states in the country. This experience has allowed me to gain insights into their diverse areas of work while also enabling me to analyze the key attributes that contribute to the success of a good NGO. According to my observations, the following are the critical factors that determine the effectiveness of an NGO.

How the slogan Jai Bhim gained momentum as movement of popularity and revolution

By Dr Kapilendra Das*  India is an incomprehensible plural country loaded with diversities of religions, castes, cultures, languages, dialects, tribes, societies, costumes, etc. The Indians have good manners/etiquette (decent social conduct, gesture, courtesy, politeness) that build healthy relationships and take them ahead to life. In many parts of India, in many situations, and on formal occasions, it is common for people of India to express and exchange respect, greetings, and salutation for which we people usually use words and phrases like- Namaskar, Namaste, Pranam, Ram Ram, Jai Ram ji, Jai Sriram, Good morning, shubha sakal, Radhe Radhe, Jai Bajarangabali, Jai Gopal, Jai Jai, Supravat, Good night, Shuvaratri, Jai Bhole, Salaam walekam, Walekam salaam, Radhaswami, Namo Buddhaya, Jai Bhim, Hello, and so on.

Martin Crowe played instrumental role in making New Zealand a force in world cricket

By Harsh Thakor* Late Martin Crowe was the perfect manifestation of how mere figures could not convey or do justice to the true merit of a batsman. Crowe was arguably the most complete  or majestic batsmen of his era or the ultimate embodiment of batting perfection, or the classical batsmen. He perished 7 years ago, due to a rare and aggressive form of cancer, follicular lymphoma, which originated in 2012. In September, we celebrated his 60th birthday but sadly he left for his heavenly abode.

Raising temperature of frozen foods by 3 degrees from -18°C to -15°C can slash carbon emissions: Study

By Payel Sannigrahi  Frozen food temperatures could be changed by just three degrees to save the carbon dioxide emissions of 3.8 million cars per year, research suggests. 

Odisha leadership crisis deepens: CM engages retired babus to oversee depts' work

By Sudhansu R Das  Over decades, Odisha has lost much of its crop diversity, fertile agriculture land, water bodies, employment potential, handicraft and handloom skills etc. The state has failed to strike a balance between the urban and rural sector growth; this leads to the migration of villagers to the urban areas leading to collapse of the urban infrastructures and an acute labor shortage in rural areas.  A large number of educated, skilled and unskilled Odia people have migrated to other states for higher education, quality jobs and for earning livelihood which plummet the efficiency level of government departments. Utmost transparency in the recruitment and promotion in the state government departments will improve governance mechanisms in the state.  "No near and dear one approach" in governance mechanisms can only achieve inclusive growth for the state on payment basis. This is a moral hazard. When so many educated young people seek employment outside the

Ceasefire a tactical victory for Palestinian resistance, protests intensify across globe

By Harsh Thakor*  The Zionist leadership and Netanyahu’s government were compelled to concede the defeat of their first attempt after almost 50 days of daily fighting in the Gaza Strip.  Netanyahu was forced to concede that he was unsuccessful in suppressing the Palestinian Resistance; and that the release of the prisoners was only plausible because they accepted Hamas’ terms.

1982-83 Bombay textile strike played major role in shaping working class movement

By Harsh Thakor  On January 18th, 1982 the working class movement commemorated the 40th anniversary of the Textile Workers Strike that lasted for 18 months, till July 1983. It was landmark event that played a major role in shaping the working class movement. With more than 2.5 lakh workers from 65 textile mills joining in this strike for almost two years, this strike became one of the most significant strikes in terms of scale and duration All democrats should applaud the mill workers’ united battle, and their unflinching resilience an death defying courage continues to serve as a model for contemporary working-class movements. Many middle class persons harboured opinions that the Textile workers were pampered or were a labour aristocracy, ignorant of how they were denied wages to provide for basic necessities. The Great Bombay Textile Strike is notably one of the most defining movements in the working class struggles in Post-independent India. Bombay’s textile industry flourished in