Note ban squeezed terror funding: FM
NEWDELHI: Finance minister Arun Jaitley on Tuesday said terror funding has been “squeezed” due to demonetisation, insisting that the number of stone pelters in J&K has gone down in the past few months due to note ban.
Replying to a discussion in the Lok Sabha on supplementary demand for grants for 2017-18, he said as a result of demonetisation, attacks on banks in Kashmir increased in the recent past as terrorists needed money.
“In 2008, 2010 and 2016 after Burhan Wani’s killing in an encounter, we saw thousands of stone pelters on streets. In last few months, there have not been more than 25-50 or 100 stone pelters. In the past few months, security forces have had an upper hand,” Jaitley said.
“The squeeze of terror funding is a direct result of demonetisation. This is happening not only in Kashmir, it is happening in Chhattisgarh too.”
Jaitley also informed the Lok Sabha that criminal proceedings will be carried out in cases arising out of the Panama Papers disclosures, and the tax department will go into claims about people claiming NRI status to avoid scrutiny.
“The money in foreign countries was reported from four sources — HSBC, Liechtenstein, International Consortium of Journalists and Panama Papers. These details need certified documents or there is no proof.”
The finance minister said in cases where the government was receiving details, notices were being sent, their income tax details assessed and tax demand raised. “Criminal proceedings are also carried out. In HSBC and now in Panama Papers, the proceedings will be carried out. In some cases, details are received, in some they are not. Lot of people claim NRI status, we will see if it is valid or not. It is now a disincentive and risky business,” he said.
Jaitley also pitched for an early decision on disinvestment of Air India. “Aviation in the country has become a personal choice. We have to decide what to do with Air India which has a debt of around ₹50,000 crore. For the next few years, this sector will expand radically,” he said.
He dismissed suggestions that ordnance factories were being privatised and allayed fears of job cut in such units, but maintained that these defence manufacturing units should also not do “tailoring”.