How corporate honchos reacted to black money allegations

India Inc leaders reacted cautiously to allegations that many industrialists stashed money in HSBC's Swiss branch in 2006-07 to avoid tax in India. 

Mukesh Ambani, chairman & managing director of Reliance Industries, alleged to have Rs 165 crore (Rs 1.65 billion) there, denied any account.

Younger brother Anil Ambani also denied knowledge of any account having funds in his name. 

Naresh Goyal, chairman of Jet Airways, said as a legal non-resident Indian (NRI), he could legitimately open bank accounts anywhere in the world.

“Naresh Goyal is fully compliant with all his obligations to the tax jurisdictions in India and other countries,” a statement issued by the airline said. Goyal, by the report, had Rs 116 crore (Rs 1.16 billion) in his account. 

Yash Birla, facing a severe liquidity crisis, did not react to the allegations of having an account in HSBC. He did not reply to a mail sent on Monday.  

Law firm Khaitan & Co, reported to have had four accounts in the name of its partners, said all these were opened abroad in line with Reserve Bank of India (RBI) norms.

“In all the four cases, the accounts were opened under the Liberalised Remittance Scheme of RBI. The said accounts were disclosed by all the four family members and accepted by the tax department,” said Haigreve Khaitan, managing partner. 

RBI had allowed remittance of $75,000 a year by resident Indians, recently increased to $250,000 a year. 

Khaitan said the income tax department had given them a clean chit since everything was documented and under the official scheme.