HSBC list: Centre must act vigorously

With the latest list disclosing that 1,195 Indians hold bank accounts in HSBC’s Swiss arm, there will at least be an end to the speculation and names being thrown around to settle political scores since 2011, when the then Manmohan Singh government got the first list of 628 names of HSBC clients from the French government. The latest list, released by the International Consortium of Investigative Journalists (ICIJ), reveals that 1,195 Indians have a balance of Rs 25,420 crore in HSBC’s Swiss arm. How much of this is actually taxable and traceable is anyone’s guess and could even turn out to be disappointing against the background of all the bluster surrounding the black money issue. For instance, of the 628 names in the earlier list, 200 are either non-residents  or non-traceable, leaving just 428 residents holding Rs 4,500 crore abroad against  whom action could be taken.  

This new list will be a further challenge to Prime Minister Narendra Modi, who has been under attack for not holding to his promise of bringing back the black money stashed in secret bank accounts abroad. During his election campaign, Mr Modi had promised to bring back the black money within a stipulated time, which has long passed, and put Rs 15 lakh from this in everyone’s bank account. He has been repeatedly taunted about this by the Opposition parties because his party, the BJP, had been cornering the Congress-led government for not trying hard enough to obtain the list of Swiss bank account holders as they were allegedly trying to protect certain people. Mr Modi’s government will now have an added reason to act more vigorously following the victory of Mr Arvind Kejriwal and the Aam Aadmi Party, who are sitting right on their doorstep. According to the tax authorities, undisclosed income of about Rs 3,150 crore has been brought into the tax net on account of deposits made in foreign bank accounts. Union finance minister Arun Jaitley said this week legal action has been initiated against 60 account holders whose names were revealed in a similar list handed over by the French government in 2011.

However, the government will have to be more proactive in getting the full list. They have the option of negotiating with the French government for the new list, or with the ICIJ, or even the whistle-blower and former HSBC employee Herve Falciani. Mr Falciani had “stolen” the list for a good cause, namely to help his government track down tax-evaders who used Swiss banks to squirrel away their money All other governments, too, are benefiting. India has the 16th-largest cash hoard and is 18th in terms of the highest number of account holders in HSBC’s Swiss arm.