Just two days before the government observes Anti-Black Money Day to mark the first anniversary of the notorious demonetisation, a cache of 13.4 million documents named 'Paradise Paper's have been outed in the largest-ever leak of financial data. The documents come 18 months after Panama Papers, and both sets of data were obtained by German newspaper Süddeutsche Zeitung, investigated by the International Consortium of Investigative Journalists (ICIJ) in partnership with 96 news organisations.
The information pertains to some of the world's best-known companies and public figures, including the Queen of England. The papers reveal that Duchy of Lancaster, private estate of the British sovereign that provides Her Highness with a private income, holds funds in the Cayman Islands and Bermuda. It has been revealed that it made a small investment in the controversial rent-to-buy firm BrightHouse. In response to the reveal, the Duchy said the holdings now equate to just over £3,000 and that it does not control how the fund acting on its behalf made decisions on investment. While no suggestions have been made on the Duchy doing anything illegal, or the Queen holding any knowledge of the use of her money, Labour MP Margaret Hodge said she was “furious” at those who advise the Queen for bringing her “into disrepute”.
Indian Connection
Among the 180 countries represented in the data, India ranks 19 in terms of the number of names. A total of 714 Indians have been reported in the tally. A massive chunk of the records investigated are from Bermuda law firm Appleby. The 119 year old company is a leading member of the global network of lawyers, accountants, bankers and other operatives who set up offshore companies and manage bank accounts for clients. Indian company, Sun Group, founded by Nand Lal Khemka, is listed as Appleby’s second-largest client internationally, with over 118 different offshore entities. Other Indian names in the records include firms like SNC-Lavalin, Ziquista Healthcare, and individuals like Amitabh Bachchan, corporate lobbyist Niira Radia, actor Sanjay Dutt's wife Manyatta who figured under her former name Dilnashin. Also on the list is Minister of State for Civil Aviation Jayant Sinha.
At a time when the CBI is making efforts to extradite liquor baron Vijay Mallya, Appleby's documents show how Diageo, the company which acquired United Spirits Limited, waived millions of dollars worth of loans taken by offshore companies like USL. There are also scores of documents on the GMPR Group. Also, Indian corporates like Jindall Steel, Apollo Tyres, Havells, Hindujas, Emaar MGF, Videocon, the Hiranandani Group, and DS Construction have also found a place in the list.
While setting up offshore entities for corporate restructuring or expansion may not be illegal, it raises an important issue on how firms like Appleby help MNCs exploit loopholes in law to avoid legitimate taxes. The company's Indian clients are all prominent corporates and companies that eventually have come under the scrutiny of investigating agencies like the Central Bureau of Investigation and the Enforcement Directorate.
Global Networking
Paradise Papers have also exposed a Russian firm's investments in Twitter and Facebook, ties between Russia and US President Donald Trump's billionaire commerce secretary Wilbur Ross, secret dealings of Canadian Prime Minister Justin Trudeau's chief fundraiser, and offshore interests of over 120 international politicians, including former Pakistan prime minister Shaukat Aziz.
Also revealed are confidential details of offshore traces of spy planes purchased by the United Arab Emirates, and Barbados explosives company of a Canadian engineer who attempted to build a “super gun” for Iraqi dictator Saddam Hussein.
