Untitled

India! I dare you to be rich

The myth of $1.5 trillion Indian money in Swiss banks

Latest, Hindu 18 June 2012: "2.18 billion Swiss francs (Rs. 12,700 crore) belonging to Indian individuals and entities."

Hot off the press

As per the official figures disclosed by Switzerland's central bank, the Swiss National Bank (SNB), total deposits of Indian individuals and companies with all the Swiss banks put together stood at about USD 2.5 billion at the end of 2010.

In comparison, total foreign assets worth around 2.85 trillion Swiss francs (USD 3.5 trillion) were parked in Swiss banks at the end of the year 2010, said a spokesperson for the Swiss Bankers' Association, the apex body of Switzerland-based banks. [Source]

Swaminomics confirms my thesis.

Addendum India starts getting banking info from Switzerland

ORIGINAL POST

I busted this myth a very long time ago, the very first time I saw an email on this subject. That was in May 2008. However, it appears it took much longer for journalists in India to bust this myth. The common man (who NEVER checks facts) has still not been demystified.

I now find that even the Economic Times got suckered into publishing false information as late as in October 2008. This only confirms to me the well known fact of the DEPLORABLE QUALITY of journalism often found in India. In this case the research abilities of Mandar Nimkar who wrote that article, and his boss who approved it, were clearly very dubious. At the minimum they ought to have followed Mark Twain's dictum and stated that the unconfirmed "facts" were "alleged", not present them as trueThese two ought to have been sacked long ago

It appears that it took the Indian media ONE year more, in September 2009 (Times of India) to sort out the facts and bust this myth. However, this myth has not yet died away. [Addendum: S. Gurumurthy repeats the same figures]

I was reminded, through a note by Harsh Vora on Facebook – who went to the bottom of this issue – that this myth (basically a falsification) still continues to go around in circles (just like the falsification about Thomas Macaulay - which damaged the reputation of an otherwise outstanding man). 

Rare – VERY rare – is that educated Indian who bothers to ask questions and find out the truth. Well done, Harsh (and Viskit)!

Let me re-assert that it is CERTAIN that a huge amount of money is stashed by Indians in Swiss banks. I'm not denying that. Just that this figure of $1.5 trillion has been pulled out from the hat by a clever falsifier. A lot of crooks operate on the internet, fooling gullible "EDUCATED" (??!!) Indians all the time.

[Addendum:

A useful resource]

A new Swiss law that will allow India to access Swiss accounts.

Swiss bank list has Indian names: Assange

Deposits of Indians in Swiss bank on decline

 

Black money: Indians have stashed over $500bn in banks abroad, says CBI

 

EXTRACT FROM MY EMAIL TO FTI MEMBERS ON 9 MAY 2008

Dear Mr XX [an FTI member]

After some initial research my view is that this information about $1.5
trillion in Indian currency in Swiss banks is false. I went to
http://www.merinews.com/catFull.jsp?articleID=137213
and to
http://newsgroups.derkeiler.com/Archive/Soc/soc.culture.bangladesh/2008-05/msg00009.html

and then to the Swiss bank association website.
http://www.swissbanking.org/en/home.htm

No authentic or credible source of information exists readily to
authenticate the information circulating on the internet
. I will need to
either see the original report/s or at least a citation in a credible
journal or newspaper before using this information. The nearest article
with some authenticity is http://www.rediff.com/money/2008/apr/15mrv.htm
which doesn't mention the $1.5 trillion figure, though.

No doubt, huge amounts of India money is hoarded in Swiss banks. But
this information is probably false
. The email also shows that false
information has been spreading like virus on the internet. Such
information can bias us because it comes from our friends (reliable
sources). I think we should treat all such emails with caution and
triple-check them before using them or passing them around.

I'm sending this piece of research to FTI so that members can advise me
if they have more authentic information on this issue. Else, they too
should also treat this information as false.

Regards
Sanjeev

[EXTRACTED FROM EMAIL FORWARDED BY MR XX]
>
>> Subject: IS INDIA POOR?
>>
>> Is India poor, who says? Ask Swiss banks
>>
>> With personal account deposit bank of $1500 billion in
>> foreign reserve which have been misappropriated, an amount
>> 13 times larger than the country's foreign debt, one
>> needs to rethink if India is a poor country?.
>>
>> DISHONEST INDUSTRIALISTS, scandalous politicians and
>> corrupt IAS, IRS, IPS officers have deposited in foreign
>> banks in their illegal personal accounts a sum of about $
>> 1500 billion, which have been misappropriated by them. This
>> amount is about 13 times larger than the country's
>> foreign debt. With this amount 45 crore poor people can get
>> Rs 1,00,000 each. This huge amount has been appropriated
>> from the people of India by exploiting and betraying them.
>>
>> Once this huge amount of black money and property comes
>> back to India , the entire foreign debt can be repaid in 24
>> hours. After paying the entire foreign debt, we will have
>> surplus amount, almost 12 times larger than the foreign
>> debt. If this surplus amount is invested in earning
>> interest, the amount of interest will be more than the
>> annual budget of the Central government. So even if all the
>> taxes are abolished, then also the Central government will
>> be able to maintain the country very comfortably.
>>
>> Some 80,000 people travel to Switzerland every year, of
>> whom 25,000 travel very frequently. 'Obviously, these
>> people won't be tourists. They must be travelling there
>> for some other reason,' believes an official involved in
>> tracking illegal money. And, clearly, he isn't referring
>> to the commerce ministry bureaucrats who've been
>> flitting in and out of Geneva ever since the World Trade
>> Organisation (WTO) negotiations went into a tailspin!
>>
>> Just read the following details and note how these
>> dishonest industrialists, scandalous politicians, corrupt
>> officers, cricketers, film actors, illegal sex trade and
>> protected wildlife operators, to name just a few, sucked
>> this country's wealth and prosperity. This may be the
>> picture of deposits in Swiss banks only. What about other
>> international banks?
>>
>> Black money in Swiss banks – Swiss Banking Association
>> report, 2006 details bank deposits in the territory of
>> Switzerland by nationals of following countries:
>>
>> Top five
>>
>> India—- $1,456 billion
>>
>> Russia —$ 470 billion
>>
>> UK ——-$390 billion
>>
>> Ukraine – $100 billion
>>
>> China —–$ 96 billion
>>
>> Now do the maths – India with $1456 billion or $1.4
>> trillion has more money in Swiss banks than rest of the
>> world combined. Public loot since 1947: Can we bring back
>> our money? It is one of the biggest loots witnessed by
>> mankind — the loot of the Aam Aadmi (common man) since
>> 1947, by his brethren occupying public office. It has been
>> orchestrated by politicians, bureaucrats and some
>> businessmen. The list is almost all-encompassing. No wonder,
>> everyone in India loots with impunity and without any fear.
>>
>> What is even more depressing in that this ill-gotten wealth
>> of ours has been stashed away abroad into secret bank
>> accounts located in some of the world's best known tax
>> havens. And to that extent the Indian economy has been
>> stripped of its wealth. Ordinary Indians may not be exactly
>> aware of how such secret accounts operate and what are the
>> rules and regulations that go on to govern such tax havens.
>> However, one may well be aware of 'Swiss bank
>> accounts,' the shorthand for murky dealings, secrecy and
>> of course pilferage from developing countries into rich
>> developed ones.
>>
>> In fact, some finance experts and economists believe tax
>> havens to be a conspiracy of the western world against the
>> poor countries. By allowing the proliferation of tax havens
>> in the twentieth century, the western world explicitly
>> encourages the movement of scarce capital from the
>> developing countries to the rich.
>>
>> In March 2005, the Tax Justice Network (TJN) published a
>> research finding demonstrating that $11.5 trillion of
>> personal wealth was held offshore by rich individuals across
>> the globe. The findings estimated that a large proportion of
>> this wealth was managed from some 70 tax havens.
>>
>> Further, augmenting these studies of TJN, Raymond Baker –
>> in his widely celebrated book titled 'Capitalism' s
>> Achilles Heel: Dirty Money and How to Renew the Free Market
>> System' — estimates that at least $5 trillion have been
>> shifted out of poorer countries to the West since the
>> mid-1970.
>>
>> It is further estimated by experts that one per cent of the
>> world's population holds more than 57 per cent of total
>> global wealth, routing it invariably through these tax
>> havens. How much of this is from India is anybody's
>> guess.
>>
>> What is to be noted here is that most of the wealth of
>> Indians parked in these tax havens is illegitimate money
>> acquired through corrupt means. Naturally, the secrecy
>> associated with the bank accounts in such places is central
>> to the issue, not their low tax rates as the term 'tax
>> havens' suggests. Remember Bofors and how India could
>> not trace the ultimate beneficiary of those transactions
>> because of the secrecy associated with these bank accounts?
>> IS THERE ANY ONE WHO WOULD SAVE INDIA ?God… No No No, even
>> he can't……. ….!!


If you found this post useful, then consider subscribing to my blog by email:

Breaking Free of Nehru

Join the Freedom Team of India or become a Freedom Partner.

Google
Print Friendly

View more posts from this author
40 thoughts on “The myth of $1.5 trillion Indian money in Swiss banks
  1. Dr Tenzin Gogoi

    I would tell you if by chance in 2014 or earlier there is any major political change in India money won’t then also come back because I feel the politicians would now already started transferring money to Dubai where banks have secrecy law with full protection from king and Dons.The oil production in Dubai is shrinking in october I was there believe whole Sharjah is Vacant it looks ghost city and traffic has significantly reduced it is WIN WIN situation for both swiss account holders and Dubai economy.

     
  2. Dr Tenzin Gogoi

    Watch this NDTV repot fully in last 4.59min of Video they clearly say 7 Trillion Indian money is lying outside India!!
    http://www.youtube.com/watch?v=Y3YjcnvONjs
    In total this means Your own article is a hoax and misleading:):):)!
    Kindly correct it with bold statements so everyone who reads article filled with immense emotions.What wonderland India could be if we are successful in bringing this back to India but God knows how it would be distributed.

     
  3. Harsh Vora

    Thanks Sanjeev — Economic Times talks about the Swiss Banking Association Report of 2006 wherein the data (specifically $1.5 trillion) regarding the total deposits of Indians is mentioned. I couldn’t find any data in this report, nor anywhere on the SBA website, as you mentioned. The actual report can be found here (if I am not wrong, this is the report ET is talking about): http://shop.sba.ch/1087_e.pdf
     

     
  4. Sanjeev Sabhlok

    Dear Dr. Gogoi

    You are clearly an emotional man if finding out the truth bothers you!

    1) Please note that I’ve PROVED that there was NO Swiss Banking Association report in 2006 which allegedly said that there was $1.456 trillion Indian money in Swiss bank accounts. That internet report is FALSE, FRAUDULENT.

    2) I’ve said clearly that I have no doubt whatsoever that “huge amounts of India money is hoarded in Swiss banks” and indeed, in other tax havens. In other words, I’m not denying that there is a lot of black money stored abroad. Indeed I have good reasons to believe that Congress party (and the Gandhi family) is perhaps one of the GREATEST looters of Indian wealth. So when you get ‘emotional’ about this money, you are right. But please be clear that we have no clear proof as reported by any Bank.

    c) In the NDTV report Dr. Lall (whom I’ve met last year, and who is a knowledgeable person, no doubt) makes a claim that the Global Financial Integrity website has asserted that $7 trillion is stored in TAX HAVENS (not only Swiss banks!). I checked the GFI website (http://india.gfip.org/) and found only the Dev Kar report cited, not the $7 trillion figure.

    To be precise, the IMF estimates that $16 billion PER YEAR is currently being taken outside India. That is plausible. 

    In my view, MOST (perhaps 75%) of this black money returns to India at the time of elections. Hence it is not permanently stored abroad, unlike what many dictators do.

    My view of the total current Indian wealth stored abroad at this point in time is therefore FAR lower than $1.5 trillion, perhaps in the range of $100 billion.

    That is not a small amount, and we ought to be very concerned, but let’s apply our mind and investigate the facts, not jump around like emotional jumping beans!

    If you have FIRM data to prove your point about the $7 trillion, please point me to that data. I can’t readily find it.

    And the rest of the stuff you cite (e.g. India Tribune) is TOTALLY WORTHLESS as evidence. I do hope you have a genuine doctorate and can distinguish good data from wild claims made on the internet.

    Regards
    Sanjeev

     
  5. Sanjeev Sabhlok

    I’m noting here for the record a comment made by a friend on Facebook today. I haven’t checked this out but just noting it for my records:

    Thanks for posting this sir. I’ve been pointing out the same when I saw a similar online campaign yesterday. They mentioned a 5 times bigger amount – Rs 280 Trillion=$6.2 Trillion. I pointed out that our GDP itself was $1.4 Trillion. But still people pointed out that it was still possible for such a figure to accumulate year on year. So I checked our monetary base and RBI says it is Rs 60 Trillion. How can someone state the value of an asset to be greater than the total currency supply? And even assuming that the assets are denominated in dollars and have appreciated in value in dollars, if Indian govt gets such a windfall of dollars, what will it do with it? If RBI buys it to create Rupees, it will create a huge inflation ( Am I correct here? ) So the govt can only use it to buy foreign goods. It will still greatly disturb global markets. I am just interested in this as a thought experiment, because I believe that 1+1 must equal 2. Can you just please clarify if my argument is wrong?”

     
  6. Sanjeev Sabhlok

    Dr Gogoi

    Thanks for this information: http://timesofindia.indiatimes.com/india/Swiss-will-share-account-info-of-tax-evaders/articleshow/6465223.cms

    [Swiss banks will share account info of tax evaders, Sachin Parashar, TNN, Aug 31, 2010]

    I was astonished that even Ram Jethmalani seems to have stopped thinking! This man, for whose legal skills I have high regard, seems to have become senile, and has referred to the $1.5 trillion figure! This man needs to start asking questions and stop taking internet FRAUD as true!

    Indeed, the ENTIRE Swiss banking system has only $2 trillion half of which is institutional. Private accounts from ALL OVER THE WORLD are $1 trillion. I don’t think that more than $50 billion of this is from India. Much of it will be from Pakistan, Egypt, Libya, etc. The rest of Indian black money abroad is stored in other tax havens, I suppose.

    Now the key issue is for the Indian government to make SPECIFIC requests, based on tax evasion information, to the Swiss authorities. I don’t think they’ve done that so far. I DOUBT whether they’ll do it, for the first thing is that the Government will fall!

    Regards
    Sanjeev

     
  7. RC

    Sanjeev,
       The reason people readily believe this figure is that it then gives a "easy" way to explain India's poverty. Its like, see, if only all these monies were not stashed away India would be rich. Thus avoiding looking at the deep structural problems that is preventing India from becoming prosperous.
    Ram Jethamlani has a political purpose in promoting this figure.

     
  8. Dr Tenzin Gogoi

     
    There is no point in begging with the swiss bank to share the data. Stop all inward remittances to India from Swiss Bank.
    2) All Indians to declare their account no. in Swiss Bank to RBI on or before March 31st, 2012 post which all other account nos. will be freezed for debit.
    3) All Indians must be forced to close their accounts in Swiss Bank on or before March 31st, 2012 post which all other remittances must be parked in any suspense a/c of RBI for laundering.

     
  9. yamdut

    Hello Mr. Sabhlok,

    Without getting into the debate of the exact amount of Indian money stashed in Swiss backs, I am quite intrigued by your research sources. Namely, some usenet message, a very public Swiss bank association website, rediff website and some news site. Which you then used to try and find out the amount of Indian money stashed in Swiss backs. What made you think that the aforementioned sources will provide you with an accurate answer to the crux of your quest? Unless, you know beforehand something of this sort: that somebody leaked top secret account holder and bank-balance information from Swiss banks, analyzed and organized that country-wise and made it freely available. And then you pompously pontificate that you “PROVED” the mendacity of that email since there was no Swiss Bank Association report to that effect. What makes you think that Swiss banks, which are renowned for the secrecy they provide to their customers will make public such a report, if indeed something like that did exist. As dubious that original email is, your research efforts are no better.

    Thanks.

     
  10. Sanjeev Sabhlok

    Dear Yamdut

    Given the existing data, what other conclusion would you draw?

    a) The ENTIRE amount of funds in Swiss Banks is $2 trillion. That is a 100% FACT.

    b) The IMF, after extensive research, estimates that about $16 billion is taken out of India each year into tax havens. That research is the closest to the truth I can find.

    c) I know for CERTAIN that most of the money is taken out by political parties and these parties are not “living up” outside India. They “live up” inside India. They have no reason to leave India when they can live like kings inside India. So the money is used primarily to fund elections in which I KNOW (100% sure) that 100-200 times the allowed election expenditure is spent by major parties, such as Congress/BJP. Therefore I estimate that 75% of the $16 billion (maybe a bit more?) comes BACK to India every 5 years or less.

    You do the maths. Can you provide me ANY better estimate BASED ON FACTS than appx. $100 billion? I’d be happy to be enlightened.

    Regards
    Sanjeev

     
  11. ATUL PANDEY

    Sir,
    i ahve read the discussion between you & Mr. GOGOI along with HARSH sir.
    WANT to just add that the amount as mentioned :
    70,00, 000 crore in INDIAN rupees.
    So i think there is a miscommunication on part of the agencies on CURRENCY terms…!!!
    Updated figures per the Swiss Banking Association report 2008

    Deposits In Swiss Bank ~

    Top 5
    India—- $1891 billion
    Russia—– $610 billion
    China—— $213 billion
    UK——– $210 billion
    Ukraine ———– $140 billion
    Rest of the world —-$300 billion

    Source: Swiss Banking Association report 2008
    Also read the last para in this article.:-
    Money lying in Swiss banks may hit markets via P-notes- Analysis-Markets-The Economic Times
    Your response awaited.
    REGARDS
    ATUL

     
  12. Passerby

    The “Blogger Control Act” is purportedly to protect Indians from misinformation of this type as well. You have pointed out that Economic Times / Times of India itself has put out false data (I have no view or knowledge on that). Now as a newspaper they may not be liable but bloggers who repeat the “information” may be liable when the new IT Act comes into play (Vicky Nanjappa explains in http://www.rediff.com/news/report/it-act-amendments-are-flawed-experts-vicky-nanjappa/20110310.htm ). Should journalists only publish fully verified truths ? Certain matters can be very hard to verify. Do journalists have more “leash” than others ? All worthy of debate !

     
  13. Passerby

    The “Blogger Control Act” is purportedly to protect Indians from misinformation of this type as well. You have pointed out that Economic Times / Times of India itself has put out false data (I have no view or knowledge on that). Now as a newspaper they may not be liable but bloggers who repeat the “information” may be liable when the new IT Act comes into play (Vicky Nanjappa explains in http://www.rediff.com/news/report/it-act-amendments-are-flawed-experts-vicky-nanjappa/20110310.htm ). Should journalists only publish fully verified truths ? Certain matters can be very hard to verify. Do journalists have more “leash” than others ? All worthy of debate !

     
  14. Sanjeev Sabhlok

    2000 years ago, 95% of the 'facts' we thought were true were later found to be false. Even today at least 50% of what we "know" is false.

    Freedom of expression goes well beyond the concept of truth/falsehood. If truth is the test of free expression, then all religions will almost certainly need to be shut down. Temples/churches/mosques would have to be closed. Government spin doctors publish false facts all the time. They would have to be shut down.

    The very idea of stopping free expression because something is false is utterly nonsensical.

    Let all ideas true or false be allowed expression and let the people decide what is true.

    Regards

    Sanjeev

     
  15. Sanjeev Sabhlok

    2000 years ago, 95% of the 'facts' we thought were true were later found to be false. Even today at least 50% of what we "know" is false.

    Freedom of expression goes well beyond the concept of truth/falsehood. If truth is the test of free expression, then all religions will almost certainly need to be shut down. Temples/churches/mosques would have to be closed. Government spin doctors publish false facts all the time. They would have to be shut down.

    The very idea of stopping free expression because something is false is utterly nonsensical.

    Let all ideas true or false be allowed expression and let the people decide what is true.

    Regards

    Sanjeev

     
  16. ATUL PANDEY

    Respected Sir,
    please go through the link listed below & shed some light on this issue to as this is in regards to the Dr. KAR's report..
    http://articles.timesofindia.indiatimes.com/2010-11-17/india/28244884_1_illicit-financial-flows-global-financial-integrity-director-illicit-assets
    Also IFF's to be some where near @least 432 bIll $……………???
    Secondly The amount u are mentioning i.e, 16 Bill $ per year going out was ONLY FOR 2002-06. (as per report)
    Thirdly,
    Primary Findings

     
    From 1948 through 2008 India lost a total of $213 billion in illicit financial flows (or illegal capital flight). These illicit financial flows were generally the product of: corruption, bribery and kickbacks, criminal activities, and efforts to shelter wealth from a country's tax authorities.
    Adjusted Estimates: The present value of India's total illicit financial flows (IFFs) is at least $462 billion. This is based on the short-term U.S. Treasury bill rate as a proxy for the rate of return on assets.

    (AS IT WAS IN THE REPORT by utilizing the World Bank Residual Model (CED) and a trade Mispricing Model based on IMF Direction of Trade statistics. )
     Fourthly,
    Also, TOTAL - 660 Bill $ (App.)
    72% Goes out side in 70 tax heavens (incld.SWISS BANK) – 460 Bill $
    28 % remains in INDIA – 230 Bill $.   ————— ( as per report of DEV KAR)
    http://www.gfip.org/storage/gfip/documents/reports/india/gfi_india.pdf – LINK GIVEN
    ALSO AS PER YOUR FIGURES –
    YOUR ESTIMATED TOTAL GOES TO  – 992 Bill $ (TILL NOW – 1948 – 2010)
    75 % comes back                                   -  744 Bill $
    ———————————————————————————————-
    TOTAL MONEY LEFT                             – 248 Bill $
    ADD ( INTREST @ SAY 5 %)               – 12.48 Bill $
    ———————————————————————————————
    FINAL TOTAL                                         – 260.48 Bill $ (App.)

     
  17. ATUL PANDEY

    Respected Sir,
    please go through the link listed below & shed some light on this issue to as this is in regards to the Dr. KAR's report..
    http://articles.timesofindia.indiatimes.com/2010-11-17/india/28244884_1_illicit-financial-flows-global-financial-integrity-director-illicit-assets
    Also IFF's to be some where near @least 432 bIll $……………???
    Secondly The amount u are mentioning i.e, 16 Bill $ per year going out was ONLY FOR 2002-06. (as per report)
    Thirdly,
    Primary Findings

     
    From 1948 through 2008 India lost a total of $213 billion in illicit financial flows (or illegal capital flight). These illicit financial flows were generally the product of: corruption, bribery and kickbacks, criminal activities, and efforts to shelter wealth from a country's tax authorities.
    Adjusted Estimates: The present value of India's total illicit financial flows (IFFs) is at least $462 billion. This is based on the short-term U.S. Treasury bill rate as a proxy for the rate of return on assets.

    (AS IT WAS IN THE REPORT by utilizing the World Bank Residual Model (CED) and a trade Mispricing Model based on IMF Direction of Trade statistics. )
     Fourthly,
    Also, TOTAL - 660 Bill $ (App.)
    72% Goes out side in 70 tax heavens (incld.SWISS BANK) – 460 Bill $
    28 % remains in INDIA – 230 Bill $.   ————— ( as per report of DEV KAR)
    http://www.gfip.org/storage/gfip/documents/reports/india/gfi_india.pdf – LINK GIVEN
    ALSO AS PER YOUR FIGURES –
    YOUR ESTIMATED TOTAL GOES TO  – 992 Bill $ (TILL NOW – 1948 – 2010)
    75 % comes back                                   -  744 Bill $
    ———————————————————————————————-
    TOTAL MONEY LEFT                             – 248 Bill $
    ADD ( INTREST @ SAY 5 %)               – 12.48 Bill $
    ———————————————————————————————
    FINAL TOTAL                                         – 260.48 Bill $ (App.)

     
  18. ATUL PANDEY

    According to a recent study by Kar and Cartwright-Smith (2008), – excerpts …

    "………….India lost betweenUS$23.7-$27.3 billion annually in illicit financial flows (IFFs) during 2002-2006, making it one of the top exporters of such capital…….."
    THE TRUTH OF MEDIA STUDY AS PER DEV KAR……………………..

    As it turns out, media reports circulating in India that Indian nationals
    held around US$1.4 trillion3 in illicit external assets are widely off the mark
    compared to the estimates found in this study. The back-of-the-envelope
    method used to derive the US$1.4 trillion was flawed—the figure was based on GFI’s
    estimated average illicit outflows of US$22.7 billion per annum (over the period 2002-
    2006) multiplied by 61 years since independence. It is erroneous to apply annual
    averages to a long time series when illicit flows are fluctuating sharply from one year
    to the next.
    Using the ENTIRE SAMPLE PERIOD method, results show that the adjusted gross transfer of illicit
    assets by residents of India amount to about US$462 billion as of end-December
    2008 (Appendix Table 11).
    SO CAN U ELABORATE ON THESE…………..!!!!
    REGARDS
    ATUL PANDEY

     
  19. ATUL PANDEY

    According to a recent study by Kar and Cartwright-Smith (2008), – excerpts …

    "………….India lost betweenUS$23.7-$27.3 billion annually in illicit financial flows (IFFs) during 2002-2006, making it one of the top exporters of such capital…….."
    THE TRUTH OF MEDIA STUDY AS PER DEV KAR……………………..

    As it turns out, media reports circulating in India that Indian nationals
    held around US$1.4 trillion3 in illicit external assets are widely off the mark
    compared to the estimates found in this study. The back-of-the-envelope
    method used to derive the US$1.4 trillion was flawed—the figure was based on GFI’s
    estimated average illicit outflows of US$22.7 billion per annum (over the period 2002-
    2006) multiplied by 61 years since independence. It is erroneous to apply annual
    averages to a long time series when illicit flows are fluctuating sharply from one year
    to the next.
    Using the ENTIRE SAMPLE PERIOD method, results show that the adjusted gross transfer of illicit
    assets by residents of India amount to about US$462 billion as of end-December
    2008 (Appendix Table 11).
    SO CAN U ELABORATE ON THESE…………..!!!!
    REGARDS
    ATUL PANDEY

     
  20. Sanjeev Sabhlok

    Thanks for this, Atul. Unfortunately I’m not clear what is your point. Do you mind summarising your findings? (I don’t have the time to read the links at the moment).

     
  21. Sanjeev Sabhlok

    Thanks for this, Atul. Unfortunately I’m not clear what is your point. Do you mind summarising your findings? (I don’t have the time to read the links at the moment).

     
  22. Sanjeev Sabhlok

    Dear Atul

    Sorry, missed this one earlier. I believe this figure ($23.7-$27.3 billion) is perhaps an under-estimate. No proof of that. But the total sitting outside is definitely not $1.5 trillion.

    If you have any other point, please summarise. I’m really short of time, so let me know what’s YOUR conclusion, i.e. whether you have found conclusive proof of $1.5 trillion.

    Regards
    Sanjeev

     
  23. Sanjeev Sabhlok

    Dear Atul

    Sorry, missed this one earlier. I believe this figure ($23.7-$27.3 billion) is perhaps an under-estimate. No proof of that. But the total sitting outside is definitely not $1.5 trillion.

    If you have any other point, please summarise. I’m really short of time, so let me know what’s YOUR conclusion, i.e. whether you have found conclusive proof of $1.5 trillion.

    Regards
    Sanjeev

     
  24. ATUL PANDEY

    RESPECTED SIR,
    I was not trying to put any point over here but was just trying to co relate different points put in by different people including you .
    Also , there is no substanciate proof of any amount of FUND that lies in these 70 tax heavens including SWISS BANK.
    AGAIN, one more thing The amount u are mentioning i.e, 16 Bill $ per year going out was ONLY FOR 2002-06 period. (as per report)
    One more thing is that i was trying to put a show on  the reason behind INDIAN news agencies, how they were citing the DRAMATIC FIGURE OF 1.4 trill $.
    Again, the figure was based on GFI’s estimated average illicit outflows of US$22.7 billion per annum (over the period 2002-2006) as per the calculation methodology used by Mr. DEV -which is having a basis behind it & IT IS NOT A HOAX FOR SURE..
    Lastly, even your calculation was wrong to an extent, it round about 500 BIll $ (app.) in 2010 as per the DEV report, as it was 462 Bill $ in 2008. (with moving oon the avg calculation basis – 18 BiIl $ per annum as per DEV report.
    There fore these were the basic lime light areas that i was trying to make u understand & correct in your BLOG too as these points are as per the report which you are taking as a bechmark for your BLOGGING on this issue.
    REGARDS
    ATUL PANDEY

     
  25. ATUL PANDEY

    RESPECTED SIR,
    I was not trying to put any point over here but was just trying to co relate different points put in by different people including you .
    Also , there is no substanciate proof of any amount of FUND that lies in these 70 tax heavens including SWISS BANK.
    AGAIN, one more thing The amount u are mentioning i.e, 16 Bill $ per year going out was ONLY FOR 2002-06 period. (as per report)
    One more thing is that i was trying to put a show on  the reason behind INDIAN news agencies, how they were citing the DRAMATIC FIGURE OF 1.4 trill $.
    Again, the figure was based on GFI’s estimated average illicit outflows of US$22.7 billion per annum (over the period 2002-2006) as per the calculation methodology used by Mr. DEV -which is having a basis behind it & IT IS NOT A HOAX FOR SURE..
    Lastly, even your calculation was wrong to an extent, it round about 500 BIll $ (app.) in 2010 as per the DEV report, as it was 462 Bill $ in 2008. (with moving oon the avg calculation basis – 18 BiIl $ per annum as per DEV report.
    There fore these were the basic lime light areas that i was trying to make u understand & correct in your BLOG too as these points are as per the report which you are taking as a bechmark for your BLOGGING on this issue.
    REGARDS
    ATUL PANDEY

     
  26. ATUL PANDEY

    RESPECTED SIR,
    Thanks for acknowledging my efforts.
    I will be looking forward to see a REFRESHED VERSION of this SAME BLOG with MENTIONING of THE EXACT & SAME DATAS. ALSO GIVING THE REASON WHY & HOW THE NEWS AGENCIES FORMULATED THE MAGICAL FIGURE OF 1.4 Trill $.
    SO THAT IT WILL BE EASY FOR PEOPLE LIKE RESPECTED Dr Tenzin Gogoi , Mr. HARSH VORA & other morons like me.

    PLESE DO THE NEEDFUL. Also I WILL LOVE TO MEET YOU SOME DAY.
    REGARDS

    ATUL PANDEY
    PUNE
    Mob – +919373427905

     
  27. ATUL PANDEY

    RESPECTED SIR,
    Thanks for acknowledging my efforts.
    I will be looking forward to see a REFRESHED VERSION of this SAME BLOG with MENTIONING of THE EXACT & SAME DATAS. ALSO GIVING THE REASON WHY & HOW THE NEWS AGENCIES FORMULATED THE MAGICAL FIGURE OF 1.4 Trill $.
    SO THAT IT WILL BE EASY FOR PEOPLE LIKE RESPECTED Dr Tenzin Gogoi , Mr. HARSH VORA & other morons like me.

    PLESE DO THE NEEDFUL. Also I WILL LOVE TO MEET YOU SOME DAY.
    REGARDS

    ATUL PANDEY
    PUNE
    Mob – +919373427905

     
  28. Sanjeev Sabhlok

    Dear Atul

    For goodness sake, don’t call yourself a moron! Humility is important but not this! You’ve done some decent amount of thinking, so well done!

    Re: my revising this blog post, don’t know if I’m going to find time to do it. This is not my only area of interest and I’ve got (like everyone else) very limited time. I’ll think about it, though. Thanks, again.

    Regards
    Sanjeev

     
  29. Sanjeev Sabhlok

    Dear Atul

    For goodness sake, don’t call yourself a moron! Humility is important but not this! You’ve done some decent amount of thinking, so well done!

    Re: my revising this blog post, don’t know if I’m going to find time to do it. This is not my only area of interest and I’ve got (like everyone else) very limited time. I’ll think about it, though. Thanks, again.

    Regards
    Sanjeev

     
  30. justanindian

    Dear Sirs,
    whatever the amount of black money lying in foreign banks, obviously thats is going to make the life of indian people better in case if ever comes back to india.
    whatever the media or people say or do… the politicians are never going to agree to bring that back as its their money lying there and i do not think they would agree to make any such step.
    even if it comes back, it will reach the same place again as they will redistribute again among themselves. as happened in last commonwealth games… no body is answerable yet and the matter is dead already.
    so no point in wasting our time, we just need to be carefull while casting our votes in the next election.
     
    thanks

     
  31. Sanjeev Sabhlok

    Dear Justanindian,

    There may be ways to bring back such money but the key thing that stops India’s growth is not that money but its bad policies. These bad policies have harmed India 100 TIMES more than any money that has been stolen.

    And no, you won’t get better candidates in the next elections since so few people have joined FTI so far. If good people are not ready to contest elections, then forget the possibility of getting good candidates. You’ll have to choose between BJP and Congress – both equally (or almost equally) corrupt.

    S

     

Leave a Reply