HSBC helped uber rich stash cash in Swiss banks

HSBC helped uber rich stash cash in Swiss banks: Kejri

Ambanis, Burmans, Naresh Goyal, HSBC Deny Allegations

Himanshi Dhawan TNN 

New Delhi: Activists Arvind Kejriwal and Prashant Bhushan widened their “anti-graft” net on Friday, accusing the multinational bank HSBC of running a huge hawala operation to launder thousands of crores of illicit money belonging to leading corporates like the Ambani brothers Mukesh and Anil, the Burmans, Naresh Goyal of Jet Airways, Yashowardhan Birla and Congress MP Annu Tandon. 
    They demanded the suspension of HSBC’s India operations and arrest of its officials, prosecution of the industrialists concerned and disclosure of names of all Indians who hold accounts in foreign branches of different banks. 
    The activists also attacked the government for not taking action against HSBC and its clients engaged in money laundering in disregard of “strong evidence’’, specifically accusing the then finance minister Pranab Mukherjee of covering up the racket when it came to light in July 2011. 
    Kejriwal and Bhushan made the sensational claim of having been tipped off by a mole who has just been inducted in the Union Cabinet, as they cited documents of the income tax department to allege that the multinational bank took at least Rs 6,000 crore in illicit money belonging to these corporates and 700 others to be deposited in its Dubai and Geneva branches. 
ARVIND’S FOURTH FRONT 
IAC ALLEGATIONS 
HSBC helped high networth individuals, including Mukesh Ambani, Anil Ambani, Kokilaben Ambani, Naresh Goyal, 3 family members of the Burmans, Yashovardhan Birla, Sandeep Tandon & Anu Tandon, to evade tax & open Swiss bank accounts 
HSBC sent agents to homes of these HNIs who took money in cash and by the end of the same day, opened accounts in Dubai or Geneva. Name and mobile number of a contact in Geneva was given for depositing and withdrawal of money. Cash would be taken and delivered at home 
Govt despite having list of 700 Swiss bank account holders didn’t make it public & adopted a pickand-choose policy by probing just 125 out of 700, letting off the ‘big fish’ STOUT DENIALS 
    Mukesh Ambani has no illegitimate accounts anywhere in the world. This being instigated by vested interests – Reliance 
    Anil Ambani has no bank accounts with HSBC in Geneva…baseless allegations at the behest of vested interests – Anil Ambani Grp 
    No account in name of Naresh Goyal in a Swiss bank as has been alleged. The suggestion…is entirely false – Jet Airways 
    The accounts were opened by the Burman family when they were NRIs… amount was officially remitted through official banking channels – Burman family 
    The charges are utterly baseless and motivated. We will take legal action – 
Anu Tandon 
    The bank cannot comment on specific details…which relate to issues in the past. HSBC takes compliance with the law, wherever it operates, very seriously – HSBC HSBC must be charged with sedition: Kejriwal But Admits IAC Doesn’t Have Data To Prove Collusion 
New Delhi: This is the first instance where the anti-graft campaigners have targeted an MNC, although it was the UPA government which bore the brunt of their fresh onslaught. “This government protects criminals, and has plunged new depths of venality, corruption and criminality. It is so degenerate that it draws repulsion,” Kejriwal said as he released interrogation reports of HSBC account holders being investigated by the I-T department and ED and cited their conversations with tax officials. 
    The activists, who came up with their fresh tranche of accusations after nine days, said the whole operation – a meticulously planned affair where people could open and operate Swiss bank accounts without stirring out of their homes in India and with greater ease than starting an account with SBI – came to light after a whistleblower in HSBC leaked the names of account holders to the French government. 
    They said that while the government, based on a CD forwarded by the French, did start investigation against 125 people, it let off the big fish: the industrialists and the Congress MP who, along with the late husband, a senior official of Reliance Industries Limited, had a stake in its subsidiary Motech Software. 
    The allegation was condemned by the government, corporates and Tandon, Congress MP from Unnao. The government dismissed the serious charge. “There is nothing new in the allegations of Mr Kejriwal. He has given no evidence and the issue has already been discussed in Parliament. If necessary, government will respond at an appropriate time,” a government source said. There were indications that the government may respond to the fresh assault from IAC by Monday if not on Saturday itself. 
    Kejriwal and Bhushan backed their charge by stressing that the CD containing names of Indians having accounts in HSBC’s branches abroad in 2006 not just came from French authorities but was also the basis for the I-T department to start probes against the 125 in the list. 
    To emphasise that their allegations were credible, they released the statements of three HSBC account holders – Parminder Singh Kalra, Vikram Dhirani and Praveen Sawhney – where they admitted to having illicitly transferred money into the foreign branches of the bank. 
    According to Kejriwal, the modus operandi revealed by the three was simple but effective. The client would just have to contact HSBC in India which would send its agent to collect cash and an account would be opened in Geneva or Dubai by evening. “You don’t need to go out of India to open an account. You are given the name and mobile number of someone in Geneva to deposit or withdraw money telephonically. There is no physical transfer of money. This is money laundering,” Kejriwal said. 
    “HSBC’s operations should be immediately suspended as it is a fit case for charging them under sedition and waging war against India,” Kejriwal said, referring to the tough measure taken by the US which forced the bank to reveal the names of American citizens having illegal accounts in their different branches. 
    As for the “big fish” on the CD, Kejriwal and Bhushan criticised the government for letting them off the hook after realising a mere Rs 181 crore as penalty for tax evasion. 
    “This is not just a case of tax evasion. This is a case of money laundering and violation of Foreign Exchange Management Act,” Bhushan said. 
    Giving the specific instance of Mukesh Ambani, Kejriwal said he was helped by the I-T department at the direct instance of Pranab Mukherjee after they had a meeting. They disregarded HSBC’s apology to Ambani for putting his name on the list of account holders. 
    Responding to questions, Kejriwal and Bhushan said they did not have documents to prove the collusion between the government and HSBC and its clients, acknowledging that their information came to them in an Excel sheet. However, they said they had verified the data from their sources and were making their case with “complete responsibility”. 
    This time, however, younger brother Anil was also in the crosshairs. Besides the allegation of money laundering through HSBC, Bhushan accused the younger Ambani of involvement in the 2G scam. 
    The lawyer-activist said CBI had found evidence that Anil had floated Swan Telecom – one of the companies which got 2G licence at dirt cheap rate – and sold off 10% of its share worth Rs 760 crore to Delphi Investment for a mere Rs 20 crore. The shares were further sold to a company Belvoir owned by a Mumbai resident. 
    On HSBC, Kejriwal said in October 2011, a report was sent by the I-T director of investigations in Delhi to director general of investigations which clearly stated that HSBC officials were indulging in hawala and also encouraging tax evasion in India. 
    The two activists also alleged that the UPA government under PM Manmohan Singh was “sold out” and it was the “biggest danger” as it had surrendered “economic sovereignty’’ of the country. They expressed fear that terrorists in Pakistan or criminals could exploit the method of money transfer in HSBC for their activities in India. 
    Asking HSBC employees to quit their jobs in national interest, the activists said this was not just a case of tax evasion but FEMA violation that attracts a penalty of double the amount that is evaded.