RAW to look into suspicious FDI transactions

The external intelligence agency has been asked to look into the transactions amid reports that black money may be pumped into the market

With the government expecting rise in Foreign Direct Investment (FDI) inflow, external intelligence agency Research and Analysis Wing (RAW) has been asked to look into suspicious transactions amid reports that black money may be pumped into the market.

This was decided at a meeting of a "working group on intelligence apparatus pertaining to Economic Intelligence Council", official sources said. The move came after the Cabinet Secretariat had proposed a comprehensive database on FDI with an economic intelligence agency.

It assumes significance as the government expects rise in FDI inflow to the country owing to its attempt of liberalising trade and promoting ease of doing business among others.

During the meeting, which was presided over by the Revenue Secretary and attended by officials of intelligence and central security agencies, the need for an extensive database exclusively for verification and analysis of FDI related cases, as proposed by the Cabinet Secretariat, was also discussed.

It was suggested that information on source of funding among others can be stored in National Economic Intelligence Network database of Central Economic Intelligence Bureau (CEIB), the sources said.

The inputs related to suspicious transactions can be shared with RAW, they said, adding the external snooping agency will later ascertain whether the source of funding was not either black money, money from drugs or terror related cases.

The government expects FDI inflows to rise by 40-45 per cent in the ongoing year as it plans further steps to attract foreign capital.