CURB BETTING, DONATE THROUGH CHEQUES, SAYS SIT
Black money panel calls for charity through cheque, curbing IPL betting, regulating PNote-based investments
The Supreme Court monitored Special Investigation Team (SIT) on black money on Friday called for transparency in donations to charitable institutions, including religious establishments, controlling of illegal betting in cricket and a greater scrutiny of stock market transactions to prevent laundering of black money in India.
The Supreme Court monitored Special Investig-ation Team (SIT) on black money on Friday called for transparency in donations to charitable institutions, including religious establishments, controlling of illegal betting in cricket and a greater scrutiny of stock market transactions to prevent laundering of black money in India.
SIT, headed by Justice M.B. Shah, in its report, submitted on Friday, said that the involvement of huge illegal, unaccounted money in cricket betting, especially in IPL, has been noticed by the Enforcement Directorate, where betting was being done over Internet or using electronic gadgets.
“Considering the fact that a large amount of black money is generated and used in this sector, it is suggested that some legislative directions or regulations are required to be put in place to curb the menace of such betting,” it said.
The SIT noted that the Indian Premier League (IPL) has been marred by betting and spot fixing scandals and involvement of huge amount of black money. “As per news reports, some of the players are paid more than the payment slabs prescribed by the BCCI, with certain amount paid through legitimate means and some in black.”
According to a 2012 FICCI and KPMG report, betting market in India is about `3 lakh crore and if taxed at 20 per cent, the exchequer can earn revenue of `12,000- `19,000 crore a year.
On donations to charitable institutions, the SIT said that the practice of donation of money to educational and religious institutions in cash should be curbed. “Nobody can object to charity but when a large amount is donated, it should be done only using accounted money and that payment should be by account payee cheque to the charity or the institution. Even if jewellery is gifted to charitable institutions, it should be done by mentioning donor’s name and his PAN number,” the report said.
It further added if any person accepts donation in cash, he should be prosecuted under the anti-corruption law along with the donor.
For this, the panel said it would require legislative change which is necessary because now-a-days donation to educational institutions, which are in demand, is rampant. “In some cases, it goes to `1 crore and more. This would go long way in curbing the generation and circulation of black money,” the report said.
On the misuse of stock markets to launder black money, SIT has asked the Sebi to seek detailed information about the participatory note (P-note) holders.
“A major chunk of outstanding ODIs (amounting to `2.7 lakh crore) invested in India are from Cayman Islands i.e. 31.31 per cent or `85,006 crores. It does not seem conceivable that a jurisdiction with a population of less than 55,000 could invest `85,000 crores in one country,” SIT said.