NSA Doval's son started hedge fund after note ban: Congress
Urges Central Bank to make public of funds received from Cayman Islands
New Delhi: Demanding the Reserve Bank of India (RBI) to make public the source of funds received from the tax haven, the Congress on Thursday alleged links between National Security Advisor Ajit Doval's son Vivek opening a hedge fund in the Cayman Islands soon after 2016 demonetisation and the huge spike in inflow of Foreign Direct Investment (FDI) into India from the territory.
Citing data by the RBI, senior Congress leader Jairam Ramesh said that between 2000 and 2017, India received Rs 8,300 crore FDI from Cayman Islands but post demonetisation, India received an equivalent amount from there in one year alone. "Within 13 days of Prime Minister Narendra Modi announcing demonetisation, Vivek Doval on November 21, 2016, opened a hedge fund called 'GNY Asia' in Cayman Islands, which, according to a report of the BJP's 2011 committee, is a known tax haven," Ramesh told reporters.
"This unnatural increase in FDI inflow and Vivek Doval's hedge fund raise serious suspicion of round-tripping. The RBI must clarify the role of GNY Asia in this. We, therefore, demand it to publicise all details of the FDI received from Cayman Islands in the last year," said the former Union Minister.
Ramesh raised suspicion of Vivek Doval's hedge fund being involved in funnelling out money and then bringing them back to India post demonetisation.
"The Modi government claims they are fighting against black money and that they will not let companies use tax havens like Cayman Islands to launder money. But there is concrete proof that members of their government are involved in doing the same, especially after demonetisation," he alleged.
The senior Congress leader further alleged links between GNY Asia and Zeus Strategic Management Advisors Pvt Ltd, another company in Cayman Islands which is headed by Doval's another son Shaurya Doval.
"NSA Ajit Doval and his sons not just need to clarify about their companies' role in the FDI inflow but also answer about Don W. Ebanks, a director in Vivek's company and whose name was also found in Panama Papers," said Ramesh.
The Congress leader referred to the BJP's 2011 committee on "Indian Black Money Abroad: Secret Banks and Tax Havens" of which Ajit Doval was a member and reminded about the recommendations by the committee that included publicising details of funds coming from foreign tax havens.
"Since Doval as a member of the committee had made the recommendations about tax havens, isn't it prudent that the source of funds received from Cayman Islands are published?" said Ramesh stressing on the need for a probe into the entire issue.
The BJP's 2011 committee had recommended that India must strive for a coordinated global and multilateral effort, which is the only solution to undo the regime of banking secrecy. It had also recommended that India should work with the West to get the OECD rules on internationally agreed tax standards and disclosures.
"India must appoint a special ambassador with adequate knowledge of tax havens and secret banking issues to work with the G-20 specifically for framing India-friendly rules," the committee had recommended.
