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Panama Papers: New ICIJ data shows about 2,000 Indian links

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New Delhi: The ICIJ has published a massive trove of ‘Panama Papers’ information on detailed offshore holding of companies in various tax haven nations including thousands of documents related to India linking close to 2,000 individuals, entities and addresses from the country.

“The International Consortium of Investigative Journalists (ICIJ) publishes today (Monday) a searchable database that strips away the secrecy of nearly 214,000 offshore entities created in 21 jurisdictions, from Nevada to Hong Kong and the British Virgin Islands.

“The data, part of the Panama Papers investigation, is the largest ever release of information about offshore companies and the people behind them. This includes, when available, the names of the real owners of those opaque structures,” the consortium said in its latest message.

A random check of the database for India displays about 22 offshore entities, 1,046 officers or individual links, 42 intermediaries and as many as 828 addresses within the country ranging from the tony and posh locations of metropolitan cities like Delhi, Mumbai, Kolkata and Chennai to mofussil locations like that in Haryana’s Sirsa, Bihar’s Muzaffarpur and Madhya Pradesh’s Mandasaur and state capital Bhopal.

The global body that brought out the first edition of the ‘Panama Papers’, by way of secret offshore data sourced from a Panamanian law firm Mossack Fonseca, said the information about a particular country could have “duplicates” as it reiterated that “there are legitimate uses for offshore companies and trusts.”

“We do not intend to suggest or imply that any persons, companies or other entities included in the ICIJ Offshore Leaks Database have broken the law or otherwise acted improperly,” the body said on its web portal as part of the disclaimer on the release of the offshore “leaks” database.

India, taking note of over 500 entities figuring during the release of the first set of names last month, had created a Multi-Agency Group (MAG) comprising officers from various central investigative agencies like the Income Tax department, FIU, RBI and Foreign Tax and Tax Research (FT and TR) under the Central Board of Direct Taxes apart from the Special Investigation Team (SIT) on black money reviewing the probe in these cases.

Government has also said in the ongoing session of Parliament that the IT department has issued notices to a number of entities named in the list.

Indian investigators had said they “will be looking into” into as much fresh information that comes in this case including the latest revelations.

While stating that the ICIJ was releasing these additional details on names and addresses in “public interest”, it added that the latest action was also an effort to “find out who’s behind almost 320,000 offshore companies and trusts from the Panama Papers and the offshore leaks investigations.”

A cursory glance of the names and addresses put up on the website of the body not only shows, in a graphic detail, Indian names and addresses along with the identities of their holding company but also specifies the date of incorporation of the firm in some cases.

The group said the “new data that ICIJ is now making public represents a fraction of the Panama Papers, a trove of more than 11.5 million leaked files from the Panama-based law firm Mossack Fonseca, one of the world’s top creators of hard-to-trace companies, trusts and foundations.

“ICIJ is not publishing the totality of the leak, and it is not disclosing raw documents or personal information en masse. The database contains a great deal of information about company owners, proxies and intermediaries in secrecy jurisdictions, but it doesn’t disclose bank accounts, email exchanges and financial transactions contained in the documents.

“The leaked data covers nearly 40 years, from 1977 through the end of 2015,” it said.

The Supreme Court also had yesterday sought response from the Centre on a plea seeking CBI inquiry against Indian offshore bank account holders named in the Panama papers.

(PTI)

Fresh claims on Bachchan in ‘Panama Papers’, equally fresh denial

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Bachchan Panama Papers

New Delhi: Even as a fresh report on the “Panama Papers” alleged Amitabh Bachchan “participated” in board meetings of two off-shore companies “by telephone conference”, the actor himself has said his name was “misused” and that nothing illegal has been attributed to him.

The Indian Express reported on Thursday that Sea Bulk Shipping and Tramp Shipping had passed a resolution each on December 12, 1994, in connection with a loan of $1.75 million from Dallah Albaraka Investment Company.

The loan was for Constellation Ship Management for the purchase of all the shares issued by Tramp Shipping and held by Sea Bulk Shipping. Besides Tramp and Sea Bulk, the paper had said Bachchan was managing director for two other offshore entities — Lady Shipping and Treasure Shipping.

“Both resolutions recorded Bachchan’s participation in board meetings ‘by telephone conference’. In their certificate of incumbency issued the same day, both companies also recorded Bachchan as director. The companies had the same directors, including Bachchan, and officers,” it said.

In response, Bachchan’s office sent a rejoinder, which was also posted on his twitter account.

“On Panama disclosures, I wish to state that queries continue to be sent to me by the media. I would humbly request them to kindly direct these to the GOI (Government of India) where I, as a law abiding citizen, have already sent, and shall continue to send, my responses,” the post said.

“I stand by my earlier statement on the ‘misuse of my name’ in the matter and in any event the press reports do not disclose any illegal act committed by me.”

The Indian Express, based on Mossack Fonseca records, said Umesh Sahai of Jersey-based corporate service provider City Management (now Minerva Trust) was one of the founder-directors of the four shipping companies and that he had appointed Bachchan as director and managing director in 1993.

“He (Sahai) also signed the board resolutions that recorded Bachchan’s participation in the December 12, 1994, meetings. Sahai did not respond to emails and phone calls seeking his comment on Bachchan’s statement denying any knowledge of the companies,” the newspaper said.

Bachchan’s name cropped up in the reports as part of a global expose of International Consortium of Investigative Journalists (ICIJ) and over 100 global media organisations, based on millions of leaked documents of the Panama law firm Mossak Fonseca.

A high-level probe team has been constituted, with members drawn from the various agencies of the finance ministry and the Reserve Bank of India (RBI) based on the orders issued by Prime Minister Narendra Modi. Indian authorities have already said not all off-shore funds need be illegitimate.

(Agencies)

Panama Papers: El Salvador raids Mossack Fonseca office

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Documents and equipment seized by authorities in investigation of Mossack Fonseca, firm at centre of data leak scandal.

Documents and equipment were sized but no employees were detained in the raid [EPA]

Documents and equipment were sized but no employees were detained in the raid [EPA]

by Al Jazeera

Authorities in El Salvador have raided the local offices of law firm Mossack Fonseca and seized documents and equipment, according to the office of the country’s attorney general.

The Panama-based law firm is at the centre of an international data leak scandal – dubbed the Panama Papers – that has embarrassed several world leaders and highlighted the shadowy world of offshore companies.

Attorney General Douglas Melendez, who personally oversaw Friday’s raid, said that the government decided to sweep the offices after noticing Mossack Fonseca had removed its office sign late on Thursday, which raised suspicions.

An employee later said the company was planning to move, according to the attorney general’s Twitter feed.

The El Salvador office is not listed on Mossack Fonseca’s corporate website.

El Salvador’s government seized about 20 computers, some documents and interviewed seven employees, but did not detain anyone, Melendez said.

“At this moment we cannot speak about [any] crimes; all we can do at this moment is our job,” he said.

He said that the government would analyse all the confiscated information and examine its financial, accounting and legal aspects.

He said it appears the law firm’s local affiliate helped process information for clients worldwide.

Governments across the world have begun investigating possible financial wrongdoing by the rich and powerful after the leak of more than 11.5 million documents from the law firm that span four decades.

“Most of us pay our taxes because it’s the right thing to do and because we don’t have any other choice,” Nick Bryer, Oxfam’s Head of UK Policy, told Al Jazeera.

“When the world’s richest decide to exploit the loopholes and deploy armies of tax lawyers and accountants to avoid paying their share, the rest of us miss out. We miss out on things which are paid for by taxes, for example schools, roads and health services.

 

“It’s a much bigger issue in a poorer country where budgets are stretched.”

Ramon Fonseca, the founding partner of Mossack Fonseca, said the leak was the result of hacking from a computer overseas rather than an inside job and that he knew which country the hacker attack had come from but was not allowed to disclose it.

The papers have revealed financial arrangements of prominent figures, including friends of Russian President Vladimir Putin and relatives of the prime ministers of Britain and Pakistan and the presidents of China and Ukraine.

Sigmundur David Gunnlaugsson, Iceland’s prime minister, was forced to quit office, becoming the first politician brought down by the leaks.

A federal prosecutor has called for an investigationinto Argentina President Mauricio Macri’s links with an offshore company that were revealed in the Panama Papers as well.

Rahul slams Modi for silence on probe into Panama Papers

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Rahul-Gandhi

Kamalpur: Congress Vice-president Rahul Gandhi on Friday attacked Prime Minister Narendra Modi, accusing him of making ‘big promises’ on bringing back black money and asked him to explain why he has not instituted a probe into the matter of the Chattisgarh chief minister’s son’s name featuring in the ‘Panama Papers’.

“The Panama Papers have been leaked and many names have been mentioned about black money kept in Panama. It has also mentioned that Chattisgarh chief minister’s son Abhishek Singh has account in Panama,” Gandhi said while addressing a Congress poll rally here for the second phase of Assam Assembly election on April 11.

“Modi makes big promises to you about bringing back black money kept abroad. He should have at least said why no investigation has been ordered into the featuring of the chief minister’s son name in them,” Gandhi said. He said he had asked Modi in Parliament why former IPL chief Lalit Modi, who had escaped from the country, had not been brought back.

“Modiji did not utter one word in response.” Claiming that the Modi government was not taking action against black money hoarders, Gandhi said, “Recently Jaitley brought a new ‘Fair and Lovely scheme’ whereby any gangster, goon, drug dealer can make their black money white by just taking it to the government and paying minimal tax on it.”

Modi, he said, only made false promises during Lok Sabha elections about bringing back black money. “None of the Indians have received the Rs 15 lakh of that money in their bank accounts as assured by Modi.”

Addressing another election rally at Dhamdhama, the Congress Vice President said this time two parties with diametrically opposite ideologies were contesting in the Assam Assembly elections.

“Congress believes in working for peace and development with feelings of brotherhood. On the other side is the BJP, RSS which indulge in divisive politics and talk only about violence, make one Indian fight with another Indian, Hindus with Muslims”, Rahul said.

Stating that 15 years ago when BJP’s present poll alliance partner AGP was in power in the state and the saffron party was at the Centre, he said, “there was only sad news, violence till Congress came and restored the peace”.

(Agencies)

Panama Papers: David Cameron admits profiting from fund

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British PM says he sold stake in his late father’s offshore investment fund four months before taking office in 2010.

Cameron has claimed to be leading efforts to clamp down on offshore havens, but the leak has led to criticism [Stefan Wermuth/Reuters]

Cameron has claimed to be leading efforts to clamp down on offshore havens, but the leak has led to criticism [Stefan Wermuth/Reuters]

by Al Jazeera

British Prime Minister David Cameron has admitted he benefited from the offshore investment fund set up by his late father.

After days of pressure following the publication of the Panama Papers leak, Cameron said on Thursday he owned a stake in the Blairmore trust, which he sold in 2010 four months before taking office.

“We owned 5,000 units in Blairmore Investment Trust, which we sold in January 2010. That was worth something like £30,000 ($42,000),” Cameron told Britain’s ITV television.

“I sold them all in 2010, because if I was going to become prime minister, I didn’t want anyone to say you have other agendas, vested interests,” the Conservative leader added.

“I paid income tax on the dividends. There was a profit on it but it was less than the capital gains tax allowance, so I didn’t pay capital gains tax.”

Refusing to comment

Cameron’s late father, Ian, was among the tens of thousands of people named in the leaked documents from law firm Mossack Fonseca.

The revelations showed how the world’s rich and powerful are able to stash their wealth and avoid taxes.

After having at first described it as a private matter, Cameron’s office said on Tuesday that he and his family did not benefit from any such funds at present.

Cameron also said he did not own any shares or have any offshore funds.

But his failure to say whether he or his family would benefit in the future only intensified media speculation the following days, with the story splashed across many newspaper front pages on Wednesday.

“There are no offshore funds or trusts which the prime minister, Mrs Cameron or their children will benefit from in future,” the spokesperson said on Wednesday.

Cameron has cast himself as a champion in the fight against tax evasion, particularly in British-linked territories such as the British Virgin Islands and Cayman Islands.

However, the opposition Labour Party has said the Panama Papers show the government has failed to tackle the issue.

Panama Papers

The International Consortium of Investigative Journalism, a non-profit group in the US, said the cache of 11.5 million records detailed the offshore holdings of a dozen current and former world leaders, as well as businessmen, criminals, celebrities and sports stars.

On Tuesday, Iceland’s Prime Minister Sigmundur Gunnlaugsson stepped down hours after thousands of protesters gathered outside parliament to demand his resignation following the Panama Papers investigation.

Elsewhere among sitting world leaders named in the leak are Argentine President Mauricio Macri and Ukraine’s President Petro Poroshenko.

The documents link at least 12 current and former heads of state and 143 other politicians to illicit financial transactions.

Panama Papers: Congress wants removal of Amitabh from ‘Save Tiger Project’

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Amitabh Bachchan

New Delhi: With actor Amitabh Bachchan’s name figuring in the Panama Papers leaks, the opposition Congress in Maharashtra on Thursday sought his ouster as state’s ambassador for the ‘Save Tiger project’ even as a BJP MLA objected to the ‘vilification campaign’ against the Bollywood megastar.

“Till Bachchan gets a clean chit in the Panama Papers case, he should be removed as tiger brand ambassador as well as from advisory panel on the development of part of the Bandra Kurla Complex as International Finance and Services Centre,” the Leader of Opposition Radhakrishna Vikhe Patil said while raising the issue in Lower House.

Incidentally, Bachchan visited Mantralaya on Thursday to attend a meeting of the panel.

“It would be improper if Bachchan continues to occupy the two posts especially when his name has allegedly figured in the Panama Papers,” the opposition leader said.

The Papers are a leaked set of 11.5 million confidential documents that provide detailed information about more than 214,000 offshore companies listed by corporate services provider Mossack Fonseca.

“Bachchan should be removed from the two posts till the inquiry launched by Prime Minister Narendra Modi in this regard is complete,” the opposition leader said.

BJP MLA Yogesh Sagar objected to the ‘vilification campaign’ against a star of Bachchan’s repute.

Bachchan, whose name figured in the leaks as allegedly having links with offshore entities in two tax havens, had already denied any connection with those companies, saying his name may have been “misused”.

“I do not know any of the companies referred to by Indian Express – Sea Bulk Shipping Company Ltd, Lady Shipping Ltd, Treasure Shipping Ltd, and Tramp Shipping Ltd. I have never been a director of any of the above-stated companies. It is possible that my name has been misused,” he had stated after the Indian Express newspaper broke the story.

(Agencies)

India sets up multi-agency probe team on ‘Panama Papers’ expose

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panama_papers

New Delhi: Prime Minister Narendra Modi on Monday ordered a multi-agency probe team on the global expose by International Consortium of Investigative Journalists (ICIJ), dubbed the “Panama Papers”, which found over 500 Indians also had alleged offshore links.

“A multi-agency group is being formed to monitor the black money trail,” Finance Minister Arun Jaitley said here after the expose was published in The Indian Express. “Details of the assets worth Rs.6,500 crore has already been found,” he added.

As per a statement issued by his ministry, the probe team will comprise officers from the Central Board of Direct Taxes’ Financial Intelligence Unit, its Tax Research Unit as also officials from the Reserve Bank of India.

“The group will monitor the flow of information in each one of the case. The government will take all the necessary actions as required to get maximum information from all sources including from foreign governments to help in the investigation process,” the statement added.

The journalists’ consortium had said late on Sunday that its members and more than 100 other news organisations around the globe have found offshore links of some of the planet’s most prominent people. The list included over 500 Indians.

The details of the Indians with such offshore funds were published in The Indian Express. But whether or not such funds exist, and also if they were illegal is what the probe team ordered by Modi is expected to look into.

“In terms of size, the Panama Papers is likely the biggest leak of inside information in history – more than 11.5 million documents – and it is equally likely to be one of the most explosive in the nature of its revelations,” the consortium said of its investigation published.

In the context of the commitment of the central government to bring out undisclosed money both from abroad and from within the country, information brought out by any investigative journalism was welcome, the finance ministry said.

The ministry said in the past too, based on the investigations by ICIJ in 2013 — that showed the links of 700 Indians with business connection with off-shore entities — the agencies of the government were able to identify 434 persons as Indian residents.

It also said 184 persons admitted their relationship with such off-shore entities/transactions.

“Although, in the previous report of ICIJ, information relating to financial transactions/bank accounts was not available, the government authorities have detected credit in the undisclosed foreign accounts of such Indian persons in excess of Rs.2,000 crores.”

As a consequence, 52 prosecution complaints have been filed against the alleged offenders so far.

“The government is committed to detecting and preventing the generation of black money. In this context the expose of Panama Papers will further help the government in meeting the objective,” the finance ministry added.

The government expressed concern that tax havens were making countries like India suffer tax losses.

“The recent initiative of ‘Base Erosion’ and ‘Profit Shifting’ (BEPS) will help India and other countries in checking the practice of tax-avoidance through such tax havens. India is also fully committed to the BEPS initiative.”

In India, The Indian Express ran several pages of the investigation reports alleging, among other names, Bollywood superstarts Amitabh Bachchan and Aishwarya Rai, being directors in companies in Panama.

The two did not immediately respond despite efforts to contact them. Aishwarya Rai’s media adviser told the newspaper that the information was false. The spokesperson for Aishwarya Rai said “no” when IANS asked her if she intended to issue a statement.

Among those named in the report were Sameer Gehlaut of India Bulls and K.P. Singh of DLF. Vinod Adani, elder brother of industrialist Gautam Adani, politician Shishir Bajoria from West Bengal and Anurag Kejriwal of Loksatta Party were also alleged to have set up companies in tax havens.

Bajoria told the paper that that “erroneous beneficial owner information” was given by mistake.

The Express said it had carried out the investigations spread over eight months with several global newspapers. Many of the other persons named in the Express reports responded, some denying while others maintaining that they had worked within the laws of the country.

Among the global leaders named were 12 current and former world leaders, including Pakistan Prime Minister Nawaz Sharif’s family members. It also sought to reveal how associates of Russian President Vladimir Putin secretly shuffled as much as $2 billion through banks and shadow firms.

In Russia, the state-run media organisations were silent on the subject. In Pakistan, however, Sharif’s son Hussain told Geo News that his family had not done anything wrong.

(Agencies)

Niira Radia now surfaces in ‘Panama Papers’

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NIIRA-RADIA

New Delhi: Niira Radia, the founder of Vaishnavi Communications whose taped telephone chats with some prominent people in India around eight years ago, including ministers, journalists and business tycoons became the matter of a probe, has now surfaced in the “Panama Papers” expose.

Her name (appearing as Nira Radia, in the documents investigated, minus the extra ‘i’) is allegedly linked to a company in British Virgin Islands, which her office has denied, The Indian Express reported on Wednesday.

In the article, as Part 3 of the expose on Indians having alleged offshore links, Radia is said to have figured prominently as a director in the 232 documents pertaining to the company listed in the tax haven, Crownmart International Group.

The list published by the newspaper on Wednesday also has the names of a top business tycoon in Bellary, a prominent industrialist and a chartered accountant — each of whom, which The Indian Express says were contacted for their responses, with many also sharing their versions.

Another article seeks to shows how the world’s largest currency note maker De La Rue had contracted a New Delhi businessman to help bag tenders in India, in return for a 15-percent commission.

The paper identifies the company as Aphra Consultants, linked to Somendra Khosla of New Delhi.

Amid these allegations, Reserve Bank of India (RBI) Governor Raghuram Rajan has said that not every off-shore company opened by an Indian national need be illegitimate, and that this would be the primary task of a probe team in which the central bank has been co-opted.

On Radia, the paper said: “An investigation of these papers shows the existence of one offshore entity owned by Radia, an International Business Company registered in the British Virgin Islands by Mossack Fonseka in 1994 named Crownmart International Group Limited.”

In response, her office said the said entity was set up by her late father Iqbal Narain Menon and that she was not a beneficiary. Also that Radia had disclosed her assets to the authorities in UK and India and that such information was personal and confidential for third parties.

In another article published on Wednesday, the newspaper said the Indian diamond merchants, who were probed earlier for having overseas accounts in Liechtenstein, British Virgin Islands and HSCB, have also surfaced in “Panama Papers”.

Prominent among them are Rosy Blue, one of the largest diamond traders in the world, and Chetan Mehta of the Belgium-based Gembel family.

The paper also reported that Harshad Ramniklal Mehta of Rosy Blue did not respond to its calls or queries, while Chetan Mehta said he has been a non-resident Indian living in Belgium and that the companies were shut longtime ago.

A part of the list, Hyderabad-based Moturi Srinivas Prasad said the off-shore entities were started as one dollar companies with the hope of doing business, but were closed.

Satish Modi of Modi Global was away from India, but an e-mail reply from his office said he is an NRI and laws were followed.

(IANS)

Massive tax evasion: Amitabh, Aishwarya among 500 Indians with hidden assets

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aishwarya-rai-amitabh-bachchan

New Delhi: The names of actors Amitabh Bachchan and Aishwarya Rai Bachchan, real estate tycoon KP Singh and late gangster Iqbal Mirchi figured in a list of over 500 Indians who allegedly used a law firm in Panama to set up offshore entities in tax havens across the world, a newspaper reported on Monday.

The Indian Express said a study of more than 11 million documents from the secret files of Mossack Fonseca, the Panama law firm, showed that Indians possibly violated tax rules or masked ownership of firms they allegedly set up abroad.

The newspaper claimed that while Aishwarya Rai was a shareholder of a firm in the British Virgin Islands, her father-in-law – superstar Amitabh Bachchan – was the director of four shipping companies in the Bahamas. It said Indiabulls owner Sameer Gahlaut acquired “three top London properties” via “entities” in the Bahamas and Jersey, and DLF promoter KP Singh and his family owned firms in the British Virgin Islands.

The promoters of Apollo Tyres, business tycoon Gautam Adani’s elder brother Vinod Adani, West Bengal politician Shishir Bajoria and former Loksatta Party leader Anurag Kejriwal were some other Indians named in the newspaper report.

Until 2003, Reserve Bank of India (RBI) norms did not allow an Indian citizen to set up an overseas entity. In 2004, resident Indians were allowed to remit funds of up to $25,000 a year under the Liberalised Remittance Scheme (LRS) – the limit of which stands at $250,000 a year now.

The media claimed that while RBI let individuals buy shares under LRS, it never permitted them to set up companies abroad. The Mossack Fonseca documents allegedly show companies were set up long before the rules were changed, and the purpose may have been to park foreign exchange in a tax haven.

Individuals named in the newspaper report were yet to comment, and government officials were expected to respond later. The report in the Indian Express formed part of an investigation by an international coalition of media outlets into the offshore financial dealings of the rich and famous, based on a vast trove of documents provided by an anonymous source.

The International Consortium of Investigative Journalism, a non-profit organisation based in Washington, said the cache of 11.5 million records detailed the offshore holdings of a dozen present and former world leaders, besides businessmen, criminals, celebrities and sports stars. Political figures from Iceland, Ukraine, Pakistan, Saudi Arabia, Russia and Argentina were named in the reports.

Hindustan Times wasn’t immediately able to verify the allegations made in the articles that were published by over 100 news organisations across the world.

(Agencies)

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