NEW DELHI: Black money, the most important common denomination between governments clearly, has blurred all lines between the Congress led UPA government and the BJP’s NDA government in power now.

Finance Minister Arun Jaitley echoed former Finance Minister PC Chidambaram’s stand as he tried to convince the Supreme Court that it was not possible to give the names of all the illegal foreign account holders because of the international treaties signed with concerned governments. It was only after the apex court refused to accept this argument, that the government has submitted a list of 627 black money account holders on the condition that these be kept secret until verified as guilty by the SIT of two former judges set up for the purpose.

The list, as Jaitley himself said, comprises a large section of Non resident Indians. The other half is reported to be some petty Indian businessmen, and a great deal of where it goes will depend on the SIT and the investigation it is able to conduct. However, this is clearly just the tip of the black money iceberg in India, perhaps not even that, with the government releasing the few names as a closely guarded secret.

The BJP that had sought to put the Congress in a fix on this issue when it was in the opposition, finds itself caught on the same side of the fence. Its reluctance to hand over the names of the black money account holders, the sharp rebuke from the Supreme Court on this, and its continuing ineptness in dealing with the situation place the BJP with the Congress party on this issue that has invited censure even from Advocate Ram Jethmalani.

Retired Judge MB Shah on the Special Investigation Team made it clear that the March 31 deadline set by the Supreme Court would be met. He told a television channel that “the biggest names will be caught. Whoever has lotted this country will be caught and punished --economically and otherwise.” He said he was sure that the “big fish” would not get away. “We don;t bother who is big. We treat them equally with the poorest persons of the country.”

He made it clear that while at present the SIT was looking at the 627 names but “there are other names which we are trying to gather. It would be investigated, the report will be exhausted.” The Association for Democratic Reforms has analysed the funding given by some of the companies in the first three names supplied by the government to the courts. And found that both the Congress and BJP have been beneficiaries of the same. ADR’s report on this is reproduced below:

Timblo Pvt Ltd donated 9 times to BJP and thrice to INC Between FY 2004-05 and 2011-12

Timblo Pvt Ltd donated 9 times to BJP and thrice to INC Between FY 2004-05 and 2011-12

The Central Government, filed an affidavit with the Supreme Court disclosing the names of three persons who have allegedly stashed black money abroad thus evading tax. These include Goa miner Radha S Timblo, former Dabur executive Mr Pradip Burman and Rajkot based bullion trader, Mr Pankaj Chimanlal Lodhia.

An analysis of the donations made by individuals and corporates to the National Parties between FY 2004-05 and 2011-12 shows that Timblo Pvt Ltd, whose Managing Director is Radha Timblo, had donated nine times to BJP amounting to a total of Rs 1.18 crores and thrice to INC, amounting to a total of Rs 65 lakhs in seven years. Also, the BJP’s donations report for the FY 2011-12 lists the name of Chamanbhai Lodhiya from Rajkot who had donated a total of Rs 51 thousand to the party. Details of all donations made by Timblo Pvt Ltd and its representatives are listed below:

Donations to Bharatiya Janata Party

Name Address Pan Given Amount Contribution Mode Financial Year
TIMBLO PVT LTD-Radha S Timblo Managing Director Kadar Manzil, PO No-34, Margoa-403601, Goa, India N 25,00,000 031097, Federal Bank,Panaji 2011-2012
Timblo Pvt Ltd CAPSEM, CUOCHADE-GOA N 25,00,000 CHEQUE NO. 101484 HDFC BANK MARGAO-G0A 2006-2007
Dilip Timblo Radha Enclave 8301311,1st Floor Next to Alta mont society Ascania Da costa Road Y 25,00,000 315549 ICICI Bank Ltd 2011-2012
Panduranga Timblo Industries Shubash Timblo Bhavan 1st Floor Margao Goa Y 20,00,000 261677 SBI Panji 2011-2012
Panduranga Timblo Industries Shubash Timblo Bhavan 1st Floor Margao Goa 403601 Y 10,00,000 261677 SBI Panji 2011-2012
Timblo Pvt Ltd Margao Goa N 7,00,000 766610 HDFC Bank. Margao 2005-2006
Timblo Pvt Ltd Capsem, Cudchade Goa N 3,00,000 Cheque No. 329754, The Madgaon Urban Co-Op Bank Ltd Margao 2004-2005
Timblo Pvt Ltd Capsem, Cudchade Goa N 20,00,000 CHEQUE NO. 844542 HDFC BANK. MARGAO-GOA 2006-2007
Timblo Pvt Ltd Capsem, Cudchade Goa N 10,00,000 372893 Madgaum Urban Co-op. Bank Ltd. Margac 2005-2006
Chamanbhai Lodhiya, Rajkot (Pankaj Lodhiya, Rajkot) -- N 51,000 093035 Axis Bank Ltd.Rajkot City 2011-2012
Total Donations (Rs) 1,18,51,000 (~Rs 1.185 crores)

Donations to Indian National Congress

Name Address Pan Given Amoun Contribution Mode Financial Year
Timblo Pvt Ltd Margao N 30,00,000 Cheque No- 002708/date 29-03-2012, The Federal Bank Panaji GOA 2011-2012
Timblo Pvt Ltd Margao N 25,00,000 Cheque No- 031498/date 24-03-2012, The Federal Bank Panaji GOA 2011-2012
Timblo Pvt Ltd Margao Y 10,00,000 2009-2010
Total Donations (Rs) Rs 65,00,000 (~Rs 65 lakhs)

There are a total of 13 Electoral Trusts, only seven of which have been approved by the Central Bureau of Direct Taxes (CBDT) because they were formed after the CBDT rules governing Electoral Trusts were notified on the 31st January, 2013. The remaining six Electoral Trusts were already in existence before the CBDT rules for such Trusts were notified.

The seven Electoral Trusts formed after the CBDT rules came into effect are required to submit details of their donations to the ECI. The remaining six formed before the CBDT rules came into existence are not required to do so under the current dispensation. These six Electoral Trusts have donated more than Rs 105 crores to national parties between 2004-05 and 2011-12. Details of these donations are not known.

Since details of donors who made contributions to these six Electoral Trusts which were in existence before the CBDT rules are not known, it cannot be verified whether the funding of political parties through Electoral Trusts was not only a means of getting tax exemption but also a means to convert black money stashed in tax havens to white money in India.

Therefore details of donors of Rs 105 crores donated to political parties by the six Electoral Trusts which were formed before the CBDT rules came into existence, should also be disclosed. These Trusts include General Electoral Trust, Electoral Trust, Harmony Electoral Trust, Corporate Electoral Trust, Bharti Electoral Trust and Satya Electoral Trust.

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