Govt must keep illegal trade on a tight leash: FICCI

Industry association FICCI today came out strongly in favour of effective checks by the government on illegal trade, which it feels causes potential loss to the exchequer and helps terror groups in carrying out their nefarious activities by using money made out of it.
Advisor of FICCI-CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy) Deep Chand made a specific mention of film piracy which, he claimed, was generating much more money than narcotics and drug trafficking and has been a major source of terrorism funding globally.
"Film piracy is one of the major illegal trades where profit earned is high and being channelised through organised crimes. Money flow in such trades is high and it is used to finance activities of terror outfits," Chand, a former Delhi police special commissioner, said here.

Releasing a report on illicit markets here, Chand said such markets pose a threat to not only legitimate industries but also the nation, which urgently needs attention of the government, and a political will is needed to address the issue.
"Money generated in these illegal trades funds terror outfits like Al-Qaeda. India is one of the sufferers of terror activities and the government must act against this trade," he stressed.
According to the report, the total estimated loss for the manufacturing industry in 2014 on account of illicit markets stood at Rs 39,239 crore, up from the earlier Rs 26,190 crore.

"Revenue loss to the government has grown exponentially by Rs 13,049 crore, an increase of 49.08 per cent during the course of two years from 2011-12 to 2013-14," the report pointed out.

The quantitative study, FICCI CASCADE Advisor P C Jha said, assesses the impact of illicit markets on various economic aspects in the manufacturing industry.
Alok Tripathi, ADG-ATS and SOG-Rajasthan Police, said tax evasion and existence of fake goods and products are a deterrent for foreign investment.
"No foreign investor will take interest and come for investment in such an environment. We are serious about it and taking action against such activities," he said.