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Paradise Papers debunk govt claim on black money: Karat

Press Trust of India  |  New Delhi 

The CPI(M) today alleged revelations in the Paradise Papers underlined the "absurdity of the claim" of Prime Minister Modi that had neutralised

Former party general secretary said the documents debunked the Centre's claim that it was fighting

"The expose ... has underlined the absurdity of the claim that has neutralised black money," Karat said, referring to the Paradise Papers, made public last week. At least 714 Indians are named in the leaked documents relating to offshore investment.

In an editorial in the forthcoming issue of party organ 'People's Democracy', Karat quoted French economist Gabriel Zucman to stress that "600 billion Euros of MNC profit were shifted to offshore havens in the last year alone".

Lashing out at big corporates who evaded taxes and deprived the countries of used for health, education and social welfare, Karat said that while keeping money abroad was legally permissible, "(it) does not make it less ugly and exposes the double standards of neoliberal capitalism".

"What is needed are strong measures to prevent the use of havens which are now allowed as legitimate business activity. Suitable laws and a regulatory framework have to be put in place to penalise offenders and plug all loopholes by which evasion is made possible," Karat said.

He suggested the confiscation of assets of those found guilty, saying it would act as a deterrent.

"To expect the government, however, to do all this would be naive," he said, accusing it of "being at the service of corporates and international capital".

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 09 2017. 19:57 IST