Pressure grows for India to bring back 'black money' stashed overseas
The embattled Indian government says the challenge is getting notorious tax-haven nations to help. But international experts say the most common obstacle nations face in trying to recover money is their own governments.
Swami Ramdev, the Indian yoga master turned anticorruption campaigner, ended his protest fast over the weekend, but not without spurring popular pressure on the government here to recover so-called black money.
Black money includes embezzled government funds, private money hidden from tax collectors, and the profits of illegal enterprises. Nearly 464 billion dirty dollars have left India since its independence, according to an estimate by the Global Financial Integrity watchdog group in Washington.
Indians want all that loot back.
Once illicit assets leave Indian shores, however, it’s extremely difficult to get them back, even with an international treaty for that purpose.
The embattled Indian government says the challenge is getting notorious tax-haven nations to help. But international experts argue the most common obstacle nations face in trying to recover money is their own governments.
“Governments are often voted in on the basis that they will fight corruption,” says Tim Daniel, a partner with Edwards Angell Palmer & Dodge, a London-based law firm. “But after a couple of years they begin to lose interest because they realize that these [black] moneys are amassed by people who were responsible for bringing them to power.”
So far, the Indian government has convinced few people that they are serious about cracking down on corruption and recovering black money.
Corruption activists going rogue
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