From our perspective, we have complied with all applicable laws – Khaitan & Co’s Haigreve Khaitan on being included in the #SwissLeaks list

Working as part of the International Consortium of Investigative Journalists , the Indian Express has identified roughly twelve hundred Indians holding an account with HSBC’s Swiss private banking firm. In all, the “SwissLeaks” project has identified a hundred thousand HSBC clients across more than two hundred countries.

. The list of Indians includes Pradip Khaitan, Haigreve Khaitan and their respective spouses.

. Speaking to Bar & Bench , Haigreve Khaitan clarified that remittances to the accounts were made via the Liberalised Remittance Scheme of the RBI, and that all applicable laws had been complied with.

. “The Income Tax Department had served us with a notice, which we had replied to. Subsequently, they had given us a clean chit. From our perspective, there has been complete compliance with all laws. ”

. Khaitan is, in fact, repeating something that has been repeatedly clarified by the ICIJ and the Indian Express, that being mentioned on the list by itself is no indication of illegality .

. Under the RBI’s Liberalised Remittance Scheme, Indian nationals are allowed to remit upto $75,000 per year. In fact, RBI Governor Raghurajam Rajan increased this to $250,000 just over a week ago.

. The Khaitan’s are not the only lawyers to find a mention on the list. Kartini Muljadi, one of Indonesia’s most successful corporate lawyers, is also on the list . And as more names trickle out, the number of lawyers is sure to increase.

. What could this “expose” of sorts mean? Well, as far as lawyers are concerned, this could bring the focus back to the Supreme Court. In October last year, CJI Dattu had directed the Central Government to provide the complete list of foreign account holders. That list contained only six hundred and twenty seven names, nearly half the ones identified by the Indian Express. The court had also appointed an SIT, headed by former judge MB Shah, whose report is expected by March this year . Given the increase in names, the SIT’s report is likely to be delayed.

. At a slightly tangential level, it will be interesting to see how Indian media reacts to these developments given that more than a few media houses are owned by individuals mentioned in the list. For example, Rajan Raheja’s RR Group owns Outlook Magazine, Mukesh Ambani acquired Network 18 in May last year, and may also have invested in NDTV . Younger brother Anil Ambani owns a stake in both, Bloomberg TV India and the TV Today network .

From our perspective, we have complied with all applicable laws – Khaitan & Co’s Haigreve Khaitan on being included in the #SwissLeaks list

Anuj Agrawal

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