Is Indian Government Giving Time To Indians To Shift Their Black Money From Switzerland To Some Other Safe Havens?
India’s struggle with corruption and black money is a tale as old as its independence. Successive governments have made grand promises to eradicate corruption and bring back black money stashed abroad, but the reality has been starkly different. Despite loud proclamations and dramatic claims, the Indian government has consistently failed to curb corruption effectively or repatriate substantial amounts of black money from Swiss banks. The numbers and the facts speak for themselves, painting a picture of ineffectiveness, if not outright complicity.
A Timeline of Indian Money in Swiss Banks
2014: The amount of Indian money in Swiss banks surged to over Rs 14,000 crore. This was a clear indication that despite years of promises and crackdowns, black money continued to find its way into Swiss accounts.
2020: Funds held by Indians in Swiss banks further ballooned to Rs 20,700 crore. This spike highlighted the systemic failure of the Indian authorities to control the flow of illicit wealth abroad.
2022: Indian money parked in Swiss banks reached a 14-year high. The government’s grandstanding on curbing black money seemed like a farce as the numbers hit unprecedented levels.
2023: Although the total amount of money that Indian clients had with Swiss banks decreased after reaching a 14-year high of CHF 3.83 billion in 2021, the damage was already done. The decrease over the next two years could not mask the previous spikes.
2024: Indians’ money in Swiss banks dropped by 70%. While the government touted this as a success, the underlying reasons were likely more complex, involving transfers to other safe havens rather than repatriation.
The Illusion of Action
Despite receiving information about bank accounts of Indian nationals and organizations in Swiss banks through the annual automatic information exchange, the Indian government has shown little effective action. Switzerland shared particulars of nearly 36 lakh financial accounts with 104 countries, including India, in 2023. To date, India has received five sets of Swiss bank account details. Yet, there has been no significant repatriation of black money.
The Indian government has repeatedly failed to answer the critical question: Why has no black money ever come back to India from Swiss banks?
Instances of Failure
The litany of failures is long and frustrating:
- The 2014 Black Money Act: Despite the fanfare surrounding the enactment of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, the actual results have been dismal. The government managed to identify only a handful of cases, and the repatriation of black money was negligible.
- Demonetization: In 2016, the government demonetized high-value currency notes to flush out black money. However, the exercise failed spectacularly, with 99% of the demonetized currency returning to the banks. The move inflicted severe economic pain on ordinary citizens while failing to uncover significant amounts of black money.
- Benami Transactions (Prohibition) Act: Despite amendments aimed at cracking down on benami properties, the enforcement has been tepid at best. A few high-profile cases have been highlighted, but the vast majority of illicit wealth remains untouched.
The Government’s Empty Promises
The continuous failure to bring back black money and curb corruption is not just a policy failure; it is a betrayal of the public trust. The government’s actions—or lack thereof—suggest that it is giving corrupt individuals ample time to transfer their illicit wealth from Switzerland to other safe havens. Despite having access to detailed information about these accounts, the Indian authorities have done little more than issue hollow threats and make empty promises.
The Sarcastic Reality
As we watch this never-ending drama unfold, one cannot help but conclude: It seems the government is giving time to corrupt people to transfer money from Switzerland to some other safe havens. In the end, it seems no black money will ever come to India, and the government will simply say there is no black money.
The Indian government’s track record on corruption and black money is a dismal tale of incompetence, indifference, and possibly complicity. The grand promises have consistently fallen flat, leaving ordinary Indians to bear the brunt of this unending saga of corruption.
