Hi, My father and me are debating over a subject on which he strongly feels that it is possible for the supreme court of India to declare an unclaimed amount in any foreign bank as national property and bring the money back to India. This is in connection with the "bring back the black money from swiss bank" movement. Pl comment if the above is possible. I understand it is not going to be straight forward, and I am not aware of the entire process involved either, but for now and sake of my debate with my father, pl tell whether there is provision for CJI to declare any such money(which remains unclaimed by an Indian or an Indian found guilty of possessing money without proper taxation and source), as nation property ?? He also cites, Mr. Barack Obama, Ex President of US, during his tenure had done something similar and brought huge sum of money to US.
1. Sir the Supreme Court or CJI cannot directly declare it as a national asset.
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BM Act) and the Fugitive Economic Offenders Act, 2018 are implemented in our country to prosecute any person who fails to disclose there foreign assets and income.
1. The Supreme Court is already seized of a petition against black money, but no effective directions have been passed till date by the court. Another petition now on the same subject may not even be entertained.
2. It will be misconceived in the first place to harbour any expectations from the Supreme Court.
Parliament has enacted black money and imposition of tax act to deal with menace of black money
2) Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 is an Act to make provisions to deal with the problem of the Black money that is undisclosed foreign income and assets, the procedure for dealing with such income and assets and to provide for imposition of tax on any undisclosed foreign income and asset held outside India and for matters connected therewith or incidental thereto.
3)
The Act contains provisions to deal with the menace of black money stashed away abroad. It, inter alia, levies tax on undisclosed assets held abroad by a person who is a resident in India at the Rate of 30 percent of the value of such assets, provides for a penalty equal to 90 percent of the value of such asset,
This is not within the power of court but govt.
Court may issue direction to govt to take all necessary steps in this regard with guidelines .
Court can not make law.
Govt is only authority to make law.
That day would be very dangerous when court will start making law whenever required.
Court can only fill-up the gap in law till the gap is filled up by law by govt.
Sometimes court goes beyond it's jurisdiction but that is not law.
Well, the Indian court can give an 9order of injunction on subject matter of foreign dispute and even pass decree even if the cause of action arises on foreign soil.
However the said power lies with lower court on a very limited contractual or arbitral dispute.
The Supreme Court in other words has no power to declare wealth stashed in a foreign bank or soil to be a national asset.
CJI does not have power to do so, it will require the interference of RBI and world bank officials
1. Indian Courts have no jurisdiction to direct Foreign Country Banks to seize /return ANY type of Money deposited in such Banks, by Indian citizens.
2. Every sovereign country will be bound only by its own internal laws.
Dear Sir/Madam,
As you are expecting, you are on right track as it is policy matter and the same may be decided by the medium of Writ/PIL by Supreme Court.
Supreme Court of India has jurisdiction over the disputes which arises in India not over Foreign Land.
Ex President of USA Barrack Obama was head of Government and States in USA.
Therefore he could do it.
Head of Government in collaboration with their counter part in other country can resolve the issues at International level between two Countries.
CJI can't but GOI Yes.
Question will remain same, if there is amount which is lyign in Swiss bank, how to prove or the evidence that it is currency of India and deposited by An Indian.
If this first stage is proved than the next question will arise, who owns those account/money and whether it is black money or not.
If black money, certainly vest in UOI. And not black money but left unclaimed or no owner than will declare escheat and vest in govy.
You can approach SC only if you have strong and cogent evidence in support of your claim.
In this matter earlier SC appointed a committee and inquiry for such black money stashed in foreign tax heavens. It's a will issue but no govt will be interested in getting black money back because most of the political parties and politicians have the same illegally deposited there. SC can at the most give direction but implementation will be govt job
The question would be, how it will be ascertained that the amount lying in foreign bank is unclaimed. Until & unless, there is policy decision between the two countries, the direction will not suffice.Firstly, the foreign bank has to provide the details of the unclaimed amount by following the procedure, as applicable in the said country and only then, the necessary process can be undertaken.
1.Such declaration can jot be done by the Apex Court. Judiciary proceeds as per the law formulated by the Parliament.
2. Moreover, if any black money is found, there is law for taxing it with penalty
3. However, the problem is who will do it. 1% of population of our country hold 73% of total assets of our Country.
4. More than 70% of our population hold no or negligible percentage of the total assets of our Country.
5. So, forget any such move.
- As per law, the Supreme Court of India is having its border of limitation for passing direction /order , which is limited to the states of India , and not extend beyond the Border.
- Only Government of India can approach that country , where the black money of an Indian is lying , after passing from the Parliament session.
- Further , Neither Supreme court and nor Government of India can , direct the other country to seize any amount of Indian Citizen living in that country as well, and hence the jurisdiction of the Supreme Court and the government of India is bound by the borders. .
- Further , As per RBI , Rs 332 crore unclaimed money lying with 25 Foreign banks operating in India.
- And further, a report by Reserve Bank of India (RBI) has revealed that around Rs 11,302 crore is lying unclaimed with banks in India.
- Yes, bring back the black money from Swiss bank is possible after started litigation against those persons , who have deposited there black money by the government of India only, but it is not possible because the personalities whose funds lying in Swiss bank having rule and regulations for himself and no law applied there.
US laws are totally different to that of Indian.
If you are concerned about it you may initiate legal action on this matter by filing a PIL before court.
You may have to provide proper proof before supreme court in this regard in the PIL.
Supreme Court CJI have no jurisdiction in this matter.
To be frank, it is difficult to bring all those money back. But a portion of it can be brought back if our government is too vigilante. I feel the parliament enacted Black Money Bill can be a stepping stone for us to bring such unaccounted funds. Government can bring back all those if they impose certain law for a short period of time.
The property of any Indian national if unclaimed belongs to the Indian government if it is in India. Even if outside India it depends if he she has any relatives etc. That doctrine is in existence in every country. Now ill gotten gains can also be claimed by India if they are in India.
Outside India has no jurisdiction unless it is proved that the cash belongs to a particular person and the banks allow India to claim it ie they themselves disclose the names.
1. This can be done by enacting a law by parliament and treaties with the country in which money is deposited and
2. It cannot be done by orders of supreme court because our courts doesn't have jurisdiction on foriegn territories.
