The Panama Papers are out! Debate over black money re-begins! According to secret files, containing over 11 million documents of the law firm Mossack Fonseca, a list of individuals were out, who paid the firm to set up offshore entities in tax havens across the world.
Mossack Fonseca helped these people to mask real ownership, at the same time showing compliance. The individuals buy benefits of secretive, lax regulatory system from the firm.
Interestingly, more than 500 Indians are in the Panama Papers list including film stars Amitabh Bachchan, Aishwarya Rai, Politicians like Shishir Bajoria from West Bengal and Anurag Kejriwa; DLF owner KP Singh and nine of his family members; Iqbal Mirchi, Gautam Adani’s elder brother Vinod Adani and several business men.
The Indian Express has revealed that 234 Indian passports were handed over as part of incorporation process to the firm. The daily has covered an investigation for eight long months over 36,000 files. The Indian Express even checked for the authenticity of more than 300 addresses. The Indian Express’ close scrutiny of The Panama Papers even revealed details of unclear deals, in which the government was also involved some times. In many cases, the deals even included cricket franchise deals.
As per RBI norms, an Indian has no chance to float an overseas entity before 2003. For the first time, individuals were allowed in 2004 to remit funds of up to $25,000 per year. This remission is allowed under the Liberalised Remittance Scheme (LRS), which limits stands at $250,000 a year now. RBI allowed individuals to buy shares under LRS. Individuals are never allowed to set up companies abroad.
- Sumana
