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India's PM Modi vows to bring 'black money' back to country

By Reuters in New Delhi | China Daily | Updated: 2014-11-03 07:39

India's Prime Minister Narendra Modi said on Sunday he was committed to bring back funds illegally deposited in banks outside the country to avoid tax, widely referred to as "black money".

In his second radio address to the nation since coming to power in May, Modi said the money stashed abroad illegally belonged to the poor of the country.

"The issue is an article of faith for me," Modi said in his speech that was aired live by various public and private radio channels.

"Every penny of this country's poor people, which has gone out, should return. This is my commitment," he said.

Illegal deposits abroad cost India billions of dollars in lost revenue and Modi had earlier promised his government would change laws or enact new measures to bring back such funds. On taking office, he appointed a panel to investigate the matter.

Modi said he did not know how much black money was deposited in banks overseas, but Washington-based think tank Global Financial Integrity has estimated that India suffered $344 billion in illicit fund outflows between 2002 and 2011, depriving the country of vital tax revenues.

India's PM Modi vows to bring 'black money' back to country

List of 627 people

The government has already submitted a list of 627 people with illegal foreign bank accounts to the Supreme Court of India, which is monitoring the case.

"From what I am understanding and based on the information I have, I am telling you that we are in the right direction," Modi said in his address, which lasted for about 20 minutes.

But that money is a fraction of the illicit funds and assets concealed in India, experts say.

Modi pledged during his high-octane election campaign to "bring back black money within 100 days" of being elected, after accusing the previous government of failing to crack down on the issue.

Anti-corruption activists petitioned the Supreme Court seeking the names of wealthy Indians under scrutiny by the new government for allegedly hiding funds offshore.

But they have encountered difficulty obtaining details of account-holders from countries due to financial confidentiality issues.

(China Daily 11/03/2014 page11)

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