Money stacked in Switzerland by Indians is reduced by half to Rs 4,500 cr in the last one year. This is in spite of increase in total funds held by all foreign clients in Swiss banks.
This is the lowest amount of funds held by Indians in the Swiss banks ever since the Alpine nation began making the data public in 1987 and marks the third straight year of decline.
What are the reasons for seeing this trend only for Indian accounts?
Narendra Modi and BJP during their campaign for parliament polls of 2014 had promised to take stringent steps to crackdown black money stashed in Swiss banks. This promise in their campaign run gained prominence because of alleged corruptions instances by previous governments. However, NDA government has done very little to get black money back from Swiss banks.
But in 2011, Congress led UPA-II through bilateral agreement with French government had obtained a list of those names who had parked in HSBC bank that amounted to Rs. 8,186cr. 628 cases were registered and they had initiated the investigation which has also seen its light in many cases.
Supreme Court had directed government to initiate more actions and had criticized lack of progress by NDA government. On 12 May 2015, Ram Jethmalani attacked Modi Government for failing to bring back the Black money as was promised before Election.
On 2 November 2015, HSBC whistleblower Herve Falciani said he is willing to cooperate with the Indian investigative agencies in black money probe but would need protection.
Though NDA II has initiated many bilateral talks with Swiss government, there are no results to show the recovery from those undisclosed accounts that was claimed by BJP during their run to 2014 elections.
Answer – Threat without action is the main reason for decreased parking by Indians in Swiss banks
BJP has derailed and misguided people by repeatedly blaming Swiss banks and allowing black money holders to move their money from Swiss banks to other investment friendly nations through hedge fund managers. Hoarders in Swiss banks have become slightly jittery because if repeated mention of accounts in Swiss banks and Modi government’s lack of immediate action has allowed them to move to other locations.
Will Modi or BJP take the blame?