Lok Sabha Question No. 971 (UNSTARRED), answered on 2016-07-22
Subject: Money Laundering Cases
Ministry: FINANCE
Asked by: P. KUMAR

971. Shri P. Kumar:

Will the Minister of FINANCE be pleased to state:

- (a)  the number of money laundering cases detected during each of the last three years and the current year, State/UT -wise;
- (b) whether Government has received reports of lack of coordination amongst different agencies  of  the  Union  and  the  respective  State  Governments  resulting  in  failure  to detect cases of black/illegal money transactions;
- (c) If so, the  details thereof alongwith the reaction of the Government thereto; and
- (d) The corrective steps taken/being taken by the Government to curb the menace of money laundering in the country?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

- (a) As per Annexure
- (b) to  (c)     Nil
- (d ) The Government has taken several effective steps, both by way of policy level initiatives as well as through more effective enforcement action on the ground, to curb the menace of black money in the country.  These steps include:
- (i) Constitution  of  the  Special  Investigation  Team  (SIT)  on  Black Money  under  the  Chairmanship  and  Vice-Chairmanship  of  two former Judges of Hon'ble Supreme Court.

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 971

## TO BE ANSWERED ON FRIDAY, JULY 22, 2016

ASHADHA 31, 1938 (SAKA)

## Money Laundering Cases

- (ii) Enactment  of  a  Comprehensive  new  law  titled  'The  Black  Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015' to specifically and more effectively deal with the issue of black money  stashed  away abroad which has come  into force w.e.f. 01.07.2015.
- (iii) Introduction  of  the  Benami  Transactions  (Prohibition)  Amendment Bill, 2015 to amend the Benami Transactions (Prohibition) Act, 1988 with a view to, inter-alia, enable confiscation of Benami property and provide for prosecution.
- (iv) Proactively engaging with foreign governments for enhanced exchange of information under Double Taxation Avoidance Agreements (DTAAs)/Tax  Information  Exchange Agreement  (TIEAs)/Multilateral Conventions.
- (v) According  high  priority  to  the  cases  involving  black  money  stashed away abroad for investigation and other follow-up actions.
- (vi) While focusing upon non-intrusive measures, due emphasis on enforcement measures in high impact cases with a view to prosecute the offenders at the earliest possible for credible deterrence against tax evasion/black money.
- (vii) Proactively furthering global efforts to  combat  tax  evasion/black money,  inter-alia,  by  joining  the  Multilateral  Competent  Authority Agreement  in  respect  of  Automatic  Exchange  of  Information  and having  information  sharing  arrangement  with  USA  under  its  Foreign Account Tax Compliance Act (FATCA).
- (viii) Rationalization of the PAN quoting requirements in respect of certain financial transactions which includes the need of compulsory quoting of PAN for sale or purchase, by any person, of goods or services of any nature  (other  than  those  for  which  separate  requirements  have  been prescribed  under  rule  114B  of  the  Income-tax  Rules,  1962)  of  the amount exceeding Rs. 2 lakh per transaction w.e.f. 1 st January, 2016.
- (ix) Vide  the  Finance  Act,  2015,  Section  132  of  the  Customs  Act,  1962, which deals with offence relating to false declaration/documents in the transaction of any  business relating  to  Customs  has  been  made predicate offence under Prevention of Money-laundering Act, 2002 to curb  trade  based  money  laundering.  Further,  vide  the  Finance  Act, 2015,  the  definition  of  'proceeds  of  crime'  under  PMLA  has  been amended. Under the revised definition 'proceeds of crime' would also include 'where such property is taken or held outside the country, then the property equivalent in value  hold within the country'.  This provision will enable action in those cases where 'proceeds of crime' is taken  or  held  outside  the  country  and  enable  action  to  be  taken  for attachment of equivalent asset located in the country.
- (x) The Foreign Exchange Management Act, 1999 (FEMA) has also been  amended  vide  Finance  Act,  2015  to  the  effect  that  if  any foreign  exchange,  foreign  security  of  any  immovable  property situated outside India is held in contravention of the provisions of this  Act,  then  action  may  be  taken  for  seizure  and  eventual confiscation of assets of equivalent value situated in India. These contraventions are also being made liable for levy of penalty and prosecution with punishment of imprisonment up to five years.

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## Annexure

| SI. No.   | State/UT where money laundering cases registered by ED   |   No. of Cases registered in the Year |   No. of Cases registered in the Year |   No. of Cases registered in the Year | No. of Cases registered in the Year   |
|-----------|----------------------------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|
|           |                                                          |                                  2013 |                                  2014 |                                  2015 | 2016 ( upto 30.06.16)                 |
| 01.       | Madhya Pradesh                                           |                                    11 |                                     6 |                                     3 | 1                                     |
| 02.       | Gujarat                                                  |                                     9 |                                     7 |                                     4 | 1                                     |
| 03.       | Karnataka                                                |                                     9 |                                    17 |                                    21 | 10                                    |
| 04.       | Tamil Nadu                                               |                                    14 |                                    13 |                                    15 | 9                                     |
| 05.       | Kerala                                                   |                                     1 |                                     7 |                                    13 | 4                                     |
| 06.       | Punjab                                                   |                                     9 |                                     3 |                                     0 | 2                                     |
| 07.       | Haryana                                                  |                                     2 |                                     3 |                                     1 | 2                                     |
| 08.       | Himachal Pradesh                                         |                                     2 |                                     2 |                                     3 | 0                                     |
| 09.       | Jammu &Kashmir                                           |                                     0 |                                     3 |                                     1 | 0                                     |
| 10.       | Uttarakhand                                              |                                     3 |                                     5 |                                     0 | 1                                     |
| 11.       | Chandigarh                                               |                                     7 |                                     0 |                                     3 | 0                                     |
| 12.       | Delhi&NCR                                                |                                    11 |                                    24 |                                    23 | 4                                     |
| 13.       | Andhra Pradesh                                           |                                     4 |                                    14 |                                    10 | 9                                     |
| 14.       | West Bengal                                              |                                     5 |                                     6 |                                    12 | 5                                     |
| 15.       | Odisha                                                   |                                     2 |                                     7 |                                     1 | 2                                     |
| 16.       | Assam &North Eastern States                              |                                     2 |                                     4 |                                     4 | 1                                     |
| 17.       | Uttar Pradesh                                            |                                    13 |                                    22 |                                     6 | 3                                     |
| 18.       | Bihar                                                    |                                     9 |                                    10 |                                     1 | 0                                     |
| 19.       | Jharkhand                                                |                                     0 |                                     6 |                                     3 | 0                                     |
| 20.       | Maharashtra                                              |                                    18 |                                    25 |                                    13 | 5                                     |
| 21.       | Goa                                                      |                                     0 |                                     3 |                                     1 | 0                                     |
| 22.       | Chhattisgarh                                             |                                     4 |                                     2 |                                     3 | 0                                     |
| 23.       | Rajasthan                                                |                                     8 |                                     5 |                                    10 | 1                                     |
|           | Total                                                    |                                   143 |                                   194 |                                   151 | 60                                    |