A Firm Stand on Black Money

It will now make it easier for the Centre to pursue the matter with foreign governments

The Supreme Court’s order to disclose the names of all foreign bank holders earlier this week reignited the debate on the need for a dynamic balance between various institutions. The court passed the order after it rejected the Government’s stand that such a move without establishing the alleged illegality of account holders would breach the confidentiality clause in existing bilateral double taxation avoidance agreements signed with other countries by India.

The Attorney General had argued that these agreements were an important source of information about Indians operating accounts abroad. He had pointed out that if the Centre disclosed all names without launching prosecutions, it would jeopardise the prospect of India signing similar agreements in the future. In this context, the court’s order on Wednesday not to make the names public before the investigations are over is a welcome step. It will make it easier for the Centre to pursue the matter with foreign governments.

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