Cases pertaining to ‘Pandora Papers’ to be investigated

The Government on Monday ordered a multi-agency investigation in connection with the Pandora Papers leak in which several high-profile Indians have been named for allegedly having secret offshore holdings in foreign countries.The multi-agency team would include investigators from the Income Tax department (I-T Dept), Enforcement Directorate (ED), the Reserve Bank of (RBI) India and the Financial Intelligence Unit (FIU). The investigation will be headed and monitored by the chairman of the Central Board of Direct Taxes (CBDT).

“The relevant investigative agencies would undertake investigation in these cases and appropriate action would be taken in such cases as per law. With a view to ensure effective investigation in these cases, the government will also proactively engage with foreign jurisdictions for obtaining information in respect of relevant taxpayers/entities. The government of India is also part of an Inter-Governmental Group that ensures collaboration and experience sharing to effectively address tax risks associated with such leaks,” the statement added.

“On October 3, 2021, the International Consortium of International Journalists (ICIJ) has come out with what is claimed to be a 2.94 terabyte data trove that exposes the offshore secrets of wealthy elites from more than 200 countries and territories. The investigation is based on a leak of confidential records of 14 offshore service providers that give professional services to wealthy individuals and corporations seeking to incorporate shell companies, trusts, foundations and other entities in low or no-tax jurisdictions,” a government statement read.

The Pandora Papers investigation  involving 600 journalists from 150 media outlets, is based on 12 million leaked documents from 14 global corporate services firms that have set up roughly 29,000 off-shore shell companies and private trusts in tax havens for clients around the globe. The documents are related to the ultimate ownership of assets placed in private offshore trusts. The investments held by offshore entities related to these elites include cash, shareholding and real estate properties, as per the Pandora Papers investigation. Approximately 380 Indians have been named in the Pandora papers leak, including Sachin Tendulkar. According to the Pandora papers, Sachin Tendulkar and his family members were allegedly beneficial owners of an offshore entity in the British Virgin Islands (BVI). Businessman Anil Ambani and Biocon chairperson Kiran Mazumdar Shaw have also been named in the paper leaks for allegedly having undeclared foreign assets. Fugitive diamantaire Nirav Modi is also mentioned in the leaked documents. Chairman, CBDT, having representatives from CBDT, ED, RBI & FIU, will monitor the probe.