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$505 billion outflow of black money from India ‘heavily exaggerated’, DRI to SIT

The estimate of USD 505 billion black money outflow from India by a US-based think tank is “heavily exaggerated”, the Directorate of Revenue Intelligence has informed the Supreme Court-appointed SIT looking into cases of tainted money.

$505 billion-AV
Global Financial Integrity, a non-profit research and advisory organisation operating from Washington, had in its report “Illicit Financial Flows from Developing Countries 2004-2013” estimated that black money outflow from India for the period was to the tune of USD 505 bn (about Rs. 34 lakh crore, as per current exchange rate).

The report had created quite a stir in the country following which the SIT, headed by former Supreme Court judge Justice M B Shah, had in February this year asked the DRI to ascertain the veracity of the findings.

The DRI then sought relevant details from the Global Financial Integrity (GFI). According to the DRI’s findings, the amount of USD 505,555 million (or USD 505 billion) — which is trade misinvoicing from India during 2004-2013 — is heavily exaggerated, official sources said.

They said the DRI report has been shared with the SIT, which is considering sending the agency’s officials to select countries abroad, including the US and Switzerland, to assess the actual amount of illicit money.

The sources said the actual amount of black money outflow — through trade-based money laundering — could be far less than mentioned in the report.

“The exact assessment would be possible only when a team of officers go out and analyse all details. But it will be far less than USD 505 billion,” a source said.

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