YS Jagan, Hetero & GMR named in Paradise Papers

New Delhi: YSRCP chief, Y S Jagan Mohan Reddy, Hetero directors and Delhi GMR group could all come again under the scanner of multi-agency investigations as their names figure in the ‘Paradise Papers’. The Investigation units of the Income Tax Department (ITD) have been alerted to take note of revelations of the ‘Paradise Papers’ exposed by the International Consortium of Investigative Journalists for immediate appropriate action. It has been reported that many cases of offshore entities are already under investigation on fast track. As soon as further information surfaces, swift action as per law will follow.

Further, the government has directed that investigations in cases of Paradise Papers will be monitored through a reconstituted Multi Agency Group, headed by the Chairman, CBDT, having representatives from CBDT, ED, RBI & FIU (Financial Intelligence Unit). Revelations made on Monday in the media under the name ‘Paradise Papers’ indicate that out of 180 countries represented in the data of offshore entities held by persons of different nationalities, India ranks 19th in terms of number of names. Reportedly 714 Indians appear in the tally.

The names of Y S Jagan Mohan Reddy figures in connection with a CBI case which seems to have some fresh financial links, Venkata Narasa Reddy Attunuri and Partha Saradhi Reddy Bandi of Hetero Drugs Limited and Delhi based GMR group also find a mention in the leaks.

The Paradise Papers include nearly 7 million loan agreements, financial statements, emails, trust deeds and other paperwork over nearly 50 years from inside Appleby, a prestigious offshore law firm with offices in Bermuda and beyond. The leaked documents include files from the smaller, family-owned trust company, Asiaciti (Singapore), and from company registries in 19 secrecy jurisdictions.

Names of only a few Indians (legal entities as well as individuals) have appeared so far in the media. Even the ICIJ website (www.icij.org) has not yet released the names and other particulars of all the entities.

The website of ICIJ suggests that information will be released in phases and structured data connected to the Paradise Papers investigation will be released only in the coming weeks on its Offshore Leaks Database. Highly placed sources further disclose that all disclosures shall be taken cognizance of. All the names mentioned in the revelation will be scrutinised and will be matched with returns. The balance sheet will also be checked.

If the returns do not match, then the departments will take swift action. The government is waiting for further details as the information is a bit scratchy now. One advantage for the government is that India has a tax treaty with Bermuda.

CBDT chairman Sushil Chandra, said Panama Papers investigation was under process and 279 cases were non-actionable as people were dead. In all 147 cases were under investigation and in 46 cases action had been taken. In five cases criminal complaints had been lodged.

Notices had been served in seven cases under the new black money laws. Totally Rs 279 crore was found as undisclosed credit and the process of assessment would take two years to complete, he added. In the present Paradise Papers too, same procedures would be launched, he added.