The Indian government may view its decision to name three out of 138 people, who have stashed away black money in foreign shores, as a step forward, but the reality is that the opening salvo has been quite a damp squib. The revelations of all names may not be possible unless the individuals are prosecuted in court, but the fact is that the government is missing the trees for the woods.
The fixation of bringing back wealth parked abroad may be a noble idea, given that it forms a significant part of India’s gross domestic product, but the authorities should also be focusing on addressing the malaise of untaxed wealth in India, which is equally rampant. The bulk of the illicit income rests at home. Tougher legislations need to be carved and passed through parliament in order to impede this crime. Prime Minister Narendra Modi needs to ensure that there is due diligence in the matter.
Focusing on the problem at home is also easier given that scrutiny on foreign bank accounts will see the government wading through international laws and processes and this is a time-consuming exercise. Examining international bank accounts held by Indians will be tougher than imagined. Ironically, the Bharatiya Janata Party is encountering the same hurdles as the erstwhile Congress-led coalition. The latter faced stiff opposition and criticism in parliament for dragging its feet.
It remains to be seen if Modi can come up with an appropriate solution.
