Wednesday, March 18, 2009

INDIA has $1.4 Trillion of Illegal money stashed in Swiss Banks - Time to bring it home !

American Thinker reports: Rajeev Gandhi’s untimely death left Sonia Gandhi extremely wealthy. The true extent of her wealth became known only when the Soviet archives were thrown open following the collapse of the Soviet Union. KGB archives revealed that as far back as 1982, when Indira Gandhi was still prime minister, Soviet trading agencies were channeling funds into a company controlled by her son and future Prime Minister Rajiv Gandhi.

This was also brought to light by Harvard Russian scholar Yvgenia Albats in her book The State Within A State: The KGB and Its Hold on Russia. The Swiss newsmagazine Schweizer Illustrierte (November 11, 1991) provided more details. Citing newly—opened KGB records, it reported that Sonia Gandhi, widow of the former Prime Minister Rajiv Gandhi, was controlling a secret account worth 2.5 billion Swiss francs (about 2 billion dollars at current exchange rates) in a Swiss bank in her minor son's name.

This was of course, the tip of the iceberg. India is number one in the world as far as stashing black money in Swiss Banks.

Now, we have figures for Swiss banks only - there are other offshore banking centres – Cayman Islands etc. One can therefore surmise that amounts stashed in Swiss Banks are also just the tip of the iceberg. Let us see that “tip of the iceberg”.

India is world’s number 1 in stashing black money – a whopping $1.4 trillion dollars = $ 1400 billion dollars = $ 1,400,000 million dollars = Rs 70,00,000 Crores.

And we are talking just about Swiss Banks only !

Daily Times Pakistan
reports : “India with $1456 billion or $1.4 trillion has more money in Swiss banks than rest of the world combined. This must be unaccounted money earned in India by wrong means as otherwise any Indian wanting to open a bank account abroad has to take permission of the Reserve Bank of India and records do not show any such permissions granted for deposits in Switzerland. 
In March 2005, the Tax Justice Network (TJN) published a research finding demonstrating that $11.5 trillion of personal wealth was held offshore by rich individuals across the globe. 
The findings estimated that a large proportion of this wealth was managed from some 70 tax havens.”

A rare accolade to the Communist Party of India

Communist Party of India (CPI) Deputy General Secretary S Sudhakar Reddy said that Government should take steps to bring back $1456 billion. This is allegedly the unaccounted money deposited by Indians in Swiss banks.

"Who could deposit this amount and why at a far of place like Switzerland not preferring banks in India? The answer is simple. This is black money, this is the money unaccounted," he said.

"These depositors are shameless betrayers of the nation and money deposited by them should be confiscated through all legal means immediately and brought back to India," he said in a letter to Prime Minister Manmohan Singh.

Even if it is $1400 billions, it is almost twice to country's Gross Domestic Product (GDP) 15 times more of its budget. If distributed equally among the Indians, each will get approximately Rs one lakh, Reddy said.

"While 36 crore people in the country are living below poverty line, it is unpardonable that a few rich keep the huge amount in Swiss banks," he added.

Milap Choraria submitted 2 application under RTI Act, 205, to the Prime Ministers Office to know actual volume of Indian (black) money deposited in Switzerland’s Banks as per rough estimates of the Government of India and that what action have been taken to retrieve such money from Switzerland to strengthen Indian Economy?

United Nations Convention Against Corruption (UNCAC), gave a chance to retrieve such money from Switzerland, provided India make appropriate law to that affect to recover such stolen Indian Money and prevent them to retain such money any further. But, till date India not ratified such Convention, and wanted to know that what are the reason and hurdles in rectification of such Convention? But, Government failed to supply appropriate information, rather trying to escape on the alleged pretext of alleged exemptions under RTI Act, 2000.

As we all go to vote, we must try to find out who ruled India most for all these years, whose money is “hiding” in the Swiss vaults, who has endangered India’s security where even the Pakistani Chief of Air Staff Air Chief Marshal Tanvir Mehmood Ahmed threatened – “We have made the whole of PAF a nuclear force.” He said the PAF had achieved such a deterrence level that no one could cast an evil eye on the motherland. We fought two wars with India in 1965 and 1971 and prevented three imminent wars in 1998, 2002 and in the recent days in the aftermath of the Mumbai attacks.”

True, India sits calmly as it braces for another attack, which will be followed by platitudes and empty threats emanating from Indian politicians. Our holes in defense are a function of slush money parked in compromised military purchase. And those slush money is now staring at our faces mocking us from the vaults of Switzerland as we face real mocking from Pakistani military and militants.

Pakistan’s ex-President Musharraf did concede, in recently concluded India Today Conclave, the fact that India may have to brace with more Mumbai type attacks. Brilliant that he could simply say that as a matter of fact – and the truth is – India is in a comatose, probably impotent.

(My view on this nuclear threat from Pakistan: Personally I give a fig leaf to this alleged threat. The threat may be real, but the threat to Pakistan is greater and in this scenario of Mutual Assured Destruction (MAD) - it pretty much cancels it out. Even in the case of a nuclear strike, India will be hurt and hurt badly but will not cease to exist - Pakistan will cease to exist. Hence, all these threats from Pakistan mean nothing to me - except empty rhetoric and trying to scare the shit out of our corrupt politicians who hold the nuclear button. Hence, we need to have ex-intelligence / armed forces person to lead India - a la PUTIN to "right certain wrongs". Don't get me wrong - I am well aware of Putin's stashed billions too - but as far as Russia's security is concerned - he does not compromise on that. Our politicians do that as a normal course - that is the difference. And I cannot stand it that they sit smug while cheating our nation of its resources, of its strength and of its security. Time to rob them off their slush funds !).

And in the current global meltdown, that slush money has no business to be sitting anywhere else but in India.

At the very least - This wrong must be “righted”.


Armed Force .. said...


If we ever go down this path - then the anger of the armed forces will boil over. It is on their death bodies, and amputations, and frostbites that the money you talk about is stashed - I will go so far to call it BLOOD MONEY.

And BJP showed its true color too. Here is a true story of a much known submarine deal.

When BJP was in power they made Rs 2000 Crs (yes, that is two thousand) on that deal.

When Congress came to power they too wanted Rs 2000 Crs - which they got.

And India got 3 junks lying near the scrap yards. Is India's security compromised. You bet.

Every time Kasavs come by the sea route, remember just this one deal. And there are 100s more.

Anonymous said...

this is awesome stuff.
I hope some concrete action is taken to retrieve this money and put to good use.
But then, what are the chances of that happening?


Kannan said...

I have heard many places that Sonia Gandhi is a triple agent(working for Polish intelligence as well as KGB). Too hard to swallow..Since I am neither a Paki/Arab or digestive juices is simply incapable of buying that. If there was anything in Bofors deal..then NDA would have gone for the kill..but they didn't..that means either Bofors is a smoke bomb or both of them cut a deal to --i will scratch ur back and u will mine--(Tehelka expose<->Bofors)
Both Congress and BJP's financial support is traders and businessmen..
So its no surprise..
On the other hand...Left though marginally honest are ideological fanatics and appeases Christian missionaries and nutty live in their own world..

So we are between devil and deep sea..


1. @ Armed Force - I liked your connotation - Blood Money. It probably best describes the slush funds. And yes, both Cong & BJP made money and continue to do so (as I am sure other parties too - Mayawati must surely be licking her lips at the possibilities, I am sure).

2. @ Clemenza - Retrieving the money - FAT CHANCE !! The only way I see can be two disparate scenarios - a) Global meltdown, really melts down the intrinsic value of Euros, Dollars et al and our domestic economy booms concurrently - hence that slush money might panic and be brought to safer investment zones of India or b) A military regime takes over India for a year and brings back that money (I know most of you will laugh at this - but stranger things have happened, and realize this - India was also on the verge of a military takeover sometime back - and I will leave it at that).

3. @ Kannan - I agree that both BJP & Cong are "brothers in arms". Though in Bofors case, I read it differently. Cong would have told BJP that if you pursue this beyond a point, we too can come and toast your "income" when we come to power - so let sleeping dogs lie.

And on the aspect of Sonia being a triple agent - please - the lady would require "brains" to pull this off - so I do not think this is true.

I remember the B'desh tapes...will attempt over this weekend.

Caveat - All the facts mentioned in this article, including my statements, have been spoken before - hence cannot be attributable to me (so there !!)

Anonymous said...

BuA, there may be $1.3 trillion in Swiss Bank. What makes you think the Swiss are going to forward the money to the Indian govt. The Swiss are know for their secrecy, loyalty to customers and do not budge even under intense pressure. The Swiss will never even acknowledge that a particular Indian individual has an account. That is the very reason black money is stashed in Swiss Banks and not Royal Bank of Scotland!
Even if they do give the money back to Indian Govt of the day, who is to say some minister like Lalu, George Fernandes or Sharad Pawar wont rake 10% off te top!


@Anon 10:50, I wrote in this article:

"United Nations Convention Against Corruption (UNCAC), gave a chance to retrieve such money from Switzerland, provided India make appropriate law to that affect to recover such stolen Indian Money and prevent them to retain such money any further. But, till date India not ratified such Convention, and wanted to know that what are the reason and hurdles in rectification of such Convention?"

ALSO NOTE: Swiss Banking secrecy is not CAST IN STONE.

Along with neutrality, banking secrecy is a pillar of Swiss national identity. Under a 75-year-old law, banking secrecy can only be lifted when individuals are deemed to have deliberately defrauded tax authorities as opposed to failing to declare all assets, a distinction only Switzerland and other tax havens make.

Banking secrecy "serves to protect privacy," Merz said. "However, it does not protect tax fraudsters."
A deal struck between Swiss bank UBS AG and the U.S. Department of Justice — which is investigating allegations the bank helped thousands of wealthy American evade taxes.

Merz said Swiss authorities handed over the files on 250 to 300 American clients of UBS who are suspected of committing tax fraud. The transfer took place in the middle of the night in the Swiss capital Bern, just ahead of a U.S. deadline for Swiss cooperation

HNECE, UBS agreed to pay a $780 million fine and cooperate further with U.S. authorities.


Surely these Indians have DELIBERATELY DEFRAUDED TAX AUTHORITIES here in INDIA and under Swiss banking laws, they are liable to divulge names if India presents its case. Unless some other authority with weight does the same instead of the Govt of India - prove the guilt (tax evasion) and get the names, and the money back to INDIA.

Jai Ho said...

What is the alternative?

At least if Congress or BJP come to power - they will be corrupt for sure, and when they buy 10 subs, we can be sure that at least 5 will run and 5 will be dud.

But if 3rd front comes - remember Gowda (he slept through his tenure) and I K Gujral (he closed down the covert wing of RAW in Pakistan) - they will probably not buy any weapons. As it is CPIM is saying it will cancel the nuclear deal.

Hence, I do not want "slightly honest" but "highly dangerous" 3rd front to rule the country.

As one commentator said, we are between devil and deep sea. But I will rather be with devil (Cong / BJP) that drown in deep sea (3rd front).

Anonymous said...

spot on!

Anonymous said...

Jai Ho....

My sentiments exactly. And now comes the moment of truth - Congress or BJP.

Think Congress is better placed with a slew of "important" leaders in "proper posts".

Think BJP should come out with at least the names of 4 individuals who will head the following (Home / External Affairs / Defense / Commerce).

It will give us a better view.

Kannan said...

@Jai Ho
+1..can't put it better..totally agree..
But it is a stretch to say that BJP and Congress steals..It is sycophant go-betweens who makes real money. BJP people like Arun Shourie,Arun Jaitley,Narendra Modi,Advani and
Congress people like Chithambaram,AK Antony,Mukerjee are known for their integrity. Ofcourse, there are "allies" that are corrupt 'top-down' like Comedy Laloo,accented Paswan,Birthday basher Mayawati,Sleeping Gowda,Impotent Gujaral,Bollywood Amar Singh,Smiling Karunakaran,whole of Tamil Nadu state rulers etc..

Anonymous said...

Kannan ... Interesting adjectives .. worth a laugh "Bollywood Amar Singh ... LOL.

Overall u r correct - though in younger days - Pranab Mukherjee and Dhirubhai Ambani had more than professional relationship. However, if Pranab M did not help Dhirubhai then, probably India would not have RIL etc today.

Akshit said...

"There is enough for everyone's need
But not for anyone's greed"
(A quote by the Mahatma weed)

Anonymous said...

Hi BuA,

Brilliant article and great comments from everyone. Sudhakar Reddy's comments on distributing the $1400 billions to benefit each Indian by 1 lac was remarkable.

But will India ever see that day? Unlikely! For as Oscar Wilde wrote : " There are many things we would throw away if we were not afraid that others might pick them up."

Isn't that how all the politicians think? And to think we have to trust them with our governance...


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