Who has, how much of India’s money?

Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

Overseas Black money

…the curse that stops India from developing

The painting is 4feet by 4feet acrylic on canvas titled “Aspirations of a rising people” made by Vishal V. Sharma in 2007

Rs. 25 Lac-crores kitna hota hai? (ROAD)

Pradhan Mantri Gram Sadak Yojana (PMGSY) makes 1 km concrete road for avg. cost of Rs. 20 lacs ($40,000)
With Rs. 25 Lac-crores, India can build 1.25 cr kms of road (33 times the distance between Earth & Moon)
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

What are Tax Havens?

• Small countries like Switzerland, Angola, Bermuda, etc that act as places of
registration for overseas non-resident companies.

• They have zero or very low income tax.

• They ask no questions on the origins of the money coming into their banks.

• They keep all banking records secret and cooperate very little with other
countries.

• They have no contribution to the world, except as points on the

world-map where ‘dirty’ money is kept safely.

• Avg. size of 34 such point-countries = 17 kms by 17 kms.

Rs. 25 Lac-crores kitna hota hai? (POWER)
1 MW of Thermal power plant costs India Rs. 4 crores ($800,000)
With Rs. 25 Lac-crores, India can build 6 lacs MWs of power, and provide 24x7 3-phase power to all villages.
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

Money involved
• Total dirty money in tax-havens = $11.5 trillion (Rs 7.5 crore-crore)

• Annually $1 trillion (Rs 50 lac-crore) being added

• 50% of this money belongs to the developing countries like India

• Estimated Indian black money in foreign banks $500 billion (Rs 25 lac-crores)

• 2002-2006 (5 years) $137.5 billion Indian black money deposited (Rs 68,750 crores)

• Source of info: Capitalism's Achilles' Heel: Dirty Money, & How to Renew the Free-Market
System.“ (2005) by Raymond W. Baker, MBA (Harvard) & Brooking’s Scholar

• Henry, James S., "The Blood Bankers: Tales from the Global Underground Economy."

Rs. 25 Lac-crores kitna hota hai? (NANO)

1 Nano costs Rs. 1 lacs ($2,000)
With Rs. 25 Lac-crores, 25 crores Indians can be gifted one Nano car each.
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

Role of Switzerland
• Swiss ambassador, “Switzerland was accused of giving shelter to black
money and there has been a lot of inflow of such wealth from India….”
[NDTV Profit 15-03-2008]

• Switzerland has 1/3rd global private funds.

• Switzerland must follow Germany’s model which is willing to give the details
of all Indian names in the LGT Bank secret records.

• Switzerland is not cooperating fully. It is reluctant to give full access to its

banking records.

Rs. 25 Lac-crores kitna hota hai? (FIGHTER PLANE)

1 Sukhoi-30 fighter plane costs $37million (Rs 185 crores)
With Rs. 25 Lac-crores, India can have more than 13,000 such Sukhoi fighters
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

G20 stance
• At the London G20 summit on 2 April 2009, G20 countries agreed to define a
blacklist for tax havens.

• Germany & France have threatened tax-havens like Switzerland

with BLACKLISTING them, if they don’t co-operate.

• Switzerland is under serious pressure to risk black listing or cooperating.

• At first UK did not support this, but public criticism forced UK PM Gordon Brown to
change tracks & issue a statement, “This is the start of the end. The era of
banking secrecy is over.”

• Unfortunately, India has kept quiet.

Rs. 25 Lac-crores kitna hota hai? (DEFENSE BUDGET)

Indian annual defense budget is about Rs 90,000 crores ($20 billion)
With Rs. 25 Lac-crores can finance India’s defense budget for 27 years.
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

Pressure to blacklist Switzerland

• The US IRS (Internal Revenue Service) fines
Switzerland’s biggest bank UBS to give
records of 300 top tax evaders.

• UBS had to pay a fine of $800 million (Rs 4,000 crores).

• US has asked for 52,000 more such account details.

Germany & France threaten to blacklist Switzerland.
India must act similarly.

Rs. 25 Lac-crores kitna hota hai? (HOSPITALS)

1 state-of-art 100-bed hospital costs about Rs. 30 crores ($6million)
With Rs. 25 Lac-crores, India can build a world class hospital in every of its 1 Lac villages (100,000 villages).
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

Swiss laws ‘protect’ the guilty

• Switzerland is reluctant to amend its laws.

• The Swiss “Federal Act on international mutual assistance in criminal

matters” (1983) and other Swiss laws permit access to bank records
only if proved that the money stored is used for criminal activities.

• Richard Murphy, famous British anti-tax haven consultant, “The

information exchange agreements don’t really make it practical to get
information unless you know the name and a/c number of the person…”

• India must join other countries and build pressure on Switzerland.

Rs. 25 Lac-crores kitna hota hai? (KALPASAR YOJANA)
Kalpasar Yojana (tidal energy harnessing project) would cost Rs. 55,000 crores ($11 billion)
With Rs. 25 Lac-crores, India can make 45 such Kalpasar Yojanas!
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

Congress’ inaction or opposition?

• Congress is already rattled by the huge public response to the BJP’s initiative.

• Jairam Ramesh, “(BJP’s) entire edifice of numbers on the black money issue is
a total hoax.” Congress party must stop attempts to trivialize the issue.

• Has done little against, if not encourage, such illegal transfers – case in point is
the unfreezing of accounts of the prime accused in the Bofors Scandal, Ottavio
Quattrocchi, the Italian middle-man and a family friend of Sonia Gandhi

• “Though the Center (UPA) was in possession of the sensitive information

(names of 50 wealthy Indians with money stashed away in the tax-haven
Liechtenstein), it was unwilling to come out in the open despite being pushed to
the wall by the BJP" - Mail Today on 26th April 2009

Rs. 25 Lac-crores kitna hota hai? (FOOD)

1 kg of rice costs Rs. 20 ($0.4)
Rs. 25 Lac-crores can give 110 crores Indians 6 kg rice every month for 17 years. (No one will sleep hungry)
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

BJP’s promise
• World respects a powerful domestic opinion on global issues, BJP will build
national consensus on the issue through massive opinion building exercise
as was done by Narendra Modi in Gujarat.

• BJP will work with other countries, such as the US, UK, Germany and
France to build international consensus and pressurize tax-havens to
disclose account details of illegal Indian money.

• BJP has already created a task-force to make this happen and a detailed
plan has already been outlined.

• The money will be redeployed for the progress of the country as detailed in
various BJP Vision documents.
Rs. 25 Lac-crores kitna hota hai? (EDUCATION)
A world-class institute, like an IIT, costs 760 crores to setup
With Rs. 25 Lac-crores, India can build 3,300 new such IIT-like educational institutes
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

The great Indian silence

• Germany & France threaten blacklisting of Switzerland. India keeps quiet.

• Germany and France take the issue of secret banks and tax havens in the
G20 preparatory meeting at Berlin In February 2009. India keeps quiet.

• These two nations and supported by UK and the US raise the voice against
secret banks and tax havens in London in April 2009, India keeps quiet.

• German govt. offers to open secret names of the account holders in LGT
Bank of Liechtenstein. India keeps quiet.

• Why India has not effectively worked to get the names of several Indians
believed to be in the secret records?

Rs. 25 Lac-crores kitna hota hai? (CANCER TREATMENT)

It costs a middle-class Indian family 12 years’ income to provide cancer treatment for 1 patient
Rs. 25 Lac-crores can provide free top quality cancer treatment to more than 2 crores Indians.
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

India must act

• Develop national will & agenda against black money in foreign banks.
• Get immigration details of the 25,000 frequent travellers to tax havens.
• Upgrade Financial Action Task Force (FATF) membership to full.
• Make specific anti-tax haven laws.
• Publicize entire economic history of overseas account holders.
• Demand LGT Bank of Liechtenstein's secret records
• Ensure India friendly global anti-secret banking rules
• Appoint a special emissary to Germany & Switzerland.
• Develop a proper Institutional infrastructure to fight the flight-of-capital.

Rs. 25 Lac-crores kitna hota hai? (RIVER INTERLINKING PROJECT)

Inter-linking of all Indian rivers would cost Rs 5.6 Lac-crores, but it would provide water everywhere.
Rs. 25 Lac-crores can provide finance more than 4 times
Some tax havens that benefit from Indian money 1/3
Some tax havens that benefit from Indian money 2/3
Some tax havens that benefit from Indian money 3/3
Who has, how much of India’s money?
Avg. size of 34 tax haven countries = 17 kilometers length (312 sq. kms) Everything you wanted to
Avg. population of 34 tax haven countries = 1 Lac people only know about the Overseas
Estimated Indian black money in tax havens: $500 billion (Rs25 Lac-crores) Black Money issue

Flight of Capital

“The flight-of-capital is a ‘conspiracy’ of the

western world against the developing world, that
has permitted the movement of much needed
scarce capital from the developing world into the
developed world.”

Rs. 25 Lac-crores kitna hota hai? (VIDARBHA FARMER SUICIDES)

Average farmer suicide loans in Vidarbha Rs 10,000 ($200)
With Rs. 25 Lac-crores no farmer in India will ever commit suicide for loan repayment – And that’s a promise!
 Thank you for your time
Bharat Mata ki jai

(*Due to the prevalent secrecy in protecting ‘dirty’ money by the tax havens, and absence of adequate laws to ensure 100% disclosures. All
figures are believed estimates. As someone has said there is a need to focus on the fact-of-the-loot, rather than on the math-of-the-loot)