Business Mantra News
Supreme Court of India had appointed Special Investigation Team (SIT) on Black Money in India. SIT in their communication dated 11/08/2016 has told Reserve Bank of India (RBI) to develop such a system in the country which could track illegal outflow of foreign exchange out of India. SIT has asserted the requirement of such mechanism for preparing such data which can be shared with various government agencies for curbing elements that can damage Indian Economy by outflow of foreign exchange illegally.
- RBI has a mechanism with the help of PAN of exporters/importers, IEC (Import Export Code) issued by DGFT. The data of such mechanism has to be shared with various enforcement agencies, who can analyze the outflow of foreign exchange.
- There have been huge export out-standings for more than 12 months violating of the FEMA rules. It may also be possible that the companies/firms/units have claimed duty drawbacks against such exports or might have made availment of export promotion schemes. So the Commerce Ministry and Revenue Intelligence Department may investigate/analyze to take necessary steps to curb or take assertive steps on Banks for realization of export outstanding amounts.
- In light of the last year’s Bank of Baroda scam, SIT sent instructions to RBI to curb and keep a check and cross-check, on the advance amount of foreign exchange sent for imports.
- SIT has also alerted the security agencies to keep a strict vigil at the various check points whether foreign exchange in cash goes out of country without declaration or in excess of the limit prescribed under FEMA.
Here sharing of data by various agencies is more important, so that enforcement and vigilance agencies work together to keep strict check on the outflow of foreign exchange, to strengthen Indian Economy.