20 January 2011

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A Case of Black Money – India, Germany and LGT Bank in Liechtenstein – Complete story – No Right to Know Names of 26 Rich Indian Criminals

A Case of Black Money – India, Germany and LGT Bank in Liechtenstein –

Complete story – No Right to Know Names of 26 Criminals

which Germany Gave to Indian Government

In real democracy citizens as well as criminals have full right to know the truth about corrupt people of the nation.
But when some one is slave in the nation he has no rights, he is dumb and blind with no rights, today with this case of black money,
It again proves our Indian Democracy is completely failed but democracy, just good thing is we are doing better than our Pakistani Brothers.
But citizens of both nations are slaves of their own nations.

Understand LGT Banking system in Liechtenstein –

The Principality of Liechtenstein is a tiny, landlocked country tucked away between Switzerland and Austria and with mountain slopes rising above the Rhine valley.

Liechtenstein is a known as a tax heaven nation.
Tax Heaven nation means no taxes on money or very very very low tax like a no tax.
According to the law in Liechtenstein, trusts allow the separation of monetary assets from their owners and are kept anonymously.
Liechtenstein trusts can be revoked at any time and the assets will be returned to the owner. Furthermore, such trusts as well as their maintaining shell entities are only charged 0.1% (minimum 1,000 Swiss francs)

In short about Liechtenstein –
Full name: Principality of Liechtenstein
Population: 35,000 (UN, 2009)
Capital: Vaduz
Area: 160 sq km (61.8 sq miles)
GNI per capita: $113, 210 (World Bank, 2008)

LGT Group is the wealth and asset management group of the princely House of Liechtenstein. LGT, originally known as The Liechtenstein Global Trust, is the largest family-owned private wealth and asset manager in Europe, wholly-owned by the Prince of Liechtenstein Foundation.

Year 2008
The German government paid €4.2 million to an ex-LGT employee, for a DVD containing records of accounts held on German account holders.
Heinrich Kieber, was paid US$7.9 million by the German secret police for a CD disc he stole that contained confidential lists of 1,400 of the bank’s foreign clients, 600 of them Germans.

Please Note this CD contained the names of wealthy Indian Residents as well as Non Resident Indians who kept their unaccounted money in this bank

In simple language this is the list of people who do not pay taxes in their own country or earn money illegally or engage in unlawful activities and to keep these funds safe they keep these funds in tax heaven nations.

After getting this information in Germany this led to to hundreds of arrests and tax prosecutions in Germany.

Recently even German tax officials or police successfully received a record fine of €50 million (US$67 million) from Crown Prince’s family-owned LGT Bank (Liechtensteinische Landesbank) for actively assisting German citizens with LGT accounts to evade taxes.

In return, German prosecutors dropped a lawsuit against the bank based on charges of aiding and abetting tax evasion. The bank’s consultants were accused of intentionally advising and assisting wealthy Germans to evade taxes.

After this in Year 2009 – This small nation started to change their laws to comply
With Article 26 of the Organization for Economic and Community Development (OECD) model tax information exchange treaty
Article 26 in the OECD model tax convention refers to exchange of information related to taxation.

Year 2009 – 2010

In 2010, Germany had given Indian authorities a list of some 50 individuals who stashed money in the LGT Bank in Liechtenstein and in other tax havens.

The government in Germany had sent the list in March 2010.

German tax authorities have provided the Indian government with information regarding accounts held by Indian nationals in the LGT Bank in Liechtenstein, a tax haven in Europe.
The details have been provided by the German authorities under the provisions of the Double Taxation Avoidance Agreement between India and Germany concerning exchange of information.

Please pay attention, German Government got the CD by paying and by using unlawful way to get the CD to punish criminal citizens of Germany.

It is said that Germany without any restrictions was ready to give India this information,
But to save the rich corrupt Indians our Government selected the path of Double Taxation Avoidance Agreement

As per this law – clause of secrecy due to a secrecy clause in the Double Taxation Avoidance Agreement (DTAA) with Germany, Our Indian Government is not ready to reveal the names of corrupt Indian rich people.

It’s very simple; our Prime Minister should write a letter to the Germany and should get their permission to reveal their names.
As Independent nation we do not need to ask them also.
This where the importance of Wikileaks comes,
We need the people like wikileaks who will make the public list by going against government; this is the type of job which wikileaks guys are doing.

Another point is the information is related with Indian citizens and 3rd country not Germany so India doesn’t need to follow the secrecy clause of this DTAA.

After getting this information Finance Ministry of India said it has uncovered around Rs 44 crore of untaxed money parked by 18 Indian nationals with LGT Bank in the European tax haven of Liechtenstein and have raised a tax demand of Rs 24 crore

Government of America bought, purchased the information on CD from German government and then USA got the list and it recovered more than Rs1, 000 crore from tax evaders and penalized their citizens for this.
In fact, the Obama administration got a Swiss bank to reveal all the names of tax evaders and also forced it to pay a fine of $ 780 million as per a deferred prosecution agreement.
British government paid £100,000 to get the data on the CD.

In India we the people of India actually does not know still today what is happening in this case.

The Case of Black Money and Indian Government, Germany and LGT Bank in Liechtenstein –

The court is hearing a PIL filed by lawyer Ram Jethmalani which alleges that Rs 70 lakh crore of black money was kept in foreign banks and the government was not taking effective steps to recover it.

After this Public Interest Litigation case was filed by senior lawyer Ram Jethmalani, former Lok Sabha secretary general Subhash Kashyap, former Punjab Police chief KPS Gill and others.

The petition said: "A former employee of LGT Bank in Liechtenstein sold data on about 1,400 people to tax authorities across the world. After receiving the data, the German government initiated action against around 600 tax payers for possible tax evasion. It has reportedly offered to provide data to any country that seeks information."

Indian nationals and a few trusts were found to have deposited around Rs 44 crore in the Liechtenstein bank.

"What is the big deal about disclosing the names?" a bench presided over by Justice B. Sudershan Reddy asked, while hearing a Public Interest Litigation (PIL) alleging government inaction in bringing back black money stashed in foreign banks.

When the court was told that the amount involved was more than $1 trillion, Justice Nijjar wanted to know how many zeros were there in a trillion.

20 January 2011 –

Government of India was not ready to reveal the names but our Judiciary became strict and after that Solicitor General Gopal Subramanium gave the court names of 26 people who hold accounts in LGT Bank in Liechtenstein. The names were given in a sealed cover.
“The list of 26 Indians (resident and non-resident) was handed to the court in a sealed cover with the stipulation that this information cannot be made public in view of the Double Taxation Avoidance Agreement (DTAA) between both nations,” said an Income-Tax official.

Subramanium told the court that the names of 26 people holding accounts in LGT Bank in Liechtenstein could not be made public on account of Double Taxation Avoidance Agreement (DTAA) with Germany and the provisions of the income tax laws.

Under the clause, the information submitted is privileged and details of the informant, its recipient and that of accountholders cannot be revealed to any third person except share it with the court or investigating agencies.

The matter will come up for hearing Jan 27 when the solicitor general will advance his arguments.

Now I Hope you got the complete idea what is happening in the case of black money India, Germany and LGT Bank in Liechtenstein –

I think if I am not slave then I got full right to know the names of criminals who rob our nation.
If I do not get to know the names of criminals then I am a slave .

According to international reports, wealth, black money stashed away by Indians in offshore banks could be $1-1.5 trillion.

Suggested Reading –
Simple and Effective solution to deal with problem of Black money:


Reality Views by sm –
Thursday, January 20, 2011

Updated On – Sunday, January 23, 2011

Indian Government requested to Liechtenstein to provide the information regarding the tax.
But the Liechtenstein rejected Indies demand saying India and Liechtenstein do not have tax exchange treaty.

What is the reason there is always delay in tax treaty, why we do not purchase the tax CD like America and England?

Updated on January 26, 2011

Finance Minister Pranab Mukherjee told that
"Let us understand the issue. No information can be made available unless there is a legal framework. No sovereign country is going to share information unless there is a legal framework,"
Information which we have obtained has come under some conditions of secrecy.
Today, if we disclose tomorrow other countries will not give me the information raising an accusing finger that you do not meet international commitments,"

The case in the Supreme Court will be heard on the 27th of January when the government will have to explain to the court why the names of the account-holders should not be made public.

Updated On Friday, January 28, 2011 –

Supreme Court of India directed the government not to restrict its probe on the aspect of tax evasion only and expand its ambit by tracking the source of money which might have originated from anti-national activities.

A bench comprising Justices B Sudarshan Reddy and S S Nijjar said that

"That is a serious matter which we are concerned about. You know the names, (you know) where the money is lying, still you are talking about double taxation issue," the bench said, asking "What action have you taken against them when you came to know that they have stashed money in foreign bank (LGT Bank in Liechtenstein)."

What steps have you taken? Have you set law in motion? They are Indian people and are amenable to Indian law,"

"What are the sources of the money? Where has the money come from? It might be because of arms deals, smuggling, narcotics, drug trafficking or something else. These are more serious issues, when you know the name, what action you have taken?," the bench asked.

The Government did not give satisfactory information to Supreme Court.


Amrit January 20, 2011  

Awesome article, Read several times, Very detIled

Rama Ananth January 20, 2011  

Everybody wants to know, and the government has to give us the names. I hope that some body leaks out the names, not that it will help in anyway to punish the wrong doers.

sm,  January 20, 2011  


Sushant Jain January 22, 2011  

An honest effort from the government is the key but we have to wait for it.

sm,  January 22, 2011  

sushant jain,,

Anonymous,  February 10, 2011  

its realy great

Anonymous,  February 10, 2011  

i have a learnt a lot regarding the s band
thank for giving this information .....

sm,  February 10, 2011  


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