Justice MB Shah Committtee: SIT to probe black money
In its first major step after assuming charge, Prime Minister Narendra Modi’s government has ordered the formation of a Special Investigation Team (SIT) to investigate black money, mostly hoarded abroad.
Composition of SIT
The SIT will be headed by retired Supreme Court judge MB Shah. Its other members include Secretary revenue, deputy governor of the Reserve Bank of India, director of the Intelligence Bureau, director of the Enforcement Directorate, director of the Central Bureau of Investigation (CBI), chairman of the Central Board of Direct Taxes and director of the Research and Analysis Wing (RAW).
As per an estimate by the US-based think tank Global Financial Integrity, the illegal money outflow from India is around $462 billion.
The black money refers to the money that is earned and transferred illegally abroad in tax havens like Cayman Islands and Mauritius, generally to evade tax. Real estate is believed to account for nearly a third of black money transactions. Other major areas of black money transactions include manufacturing, gold and consumer goods purchases.