India's illicit financial outflows estimated at $462 bn

A report of Global Financial Integrity (GFI) has estimated the total value of illicit money that has flown out of India at USD 462 billion (about Rs 20.92 lakh crore), Parliament was informed today.

"The present value of India's total illicit financial flows, as per the (GFI) report is USD 462 billion," Minister of State for Finance S S Palanimanickam said in a written reply to the Rajya Sabha.

As per the GFI report, the country lost a total of USD 213 billion in illicit financial flows during 1948-2008.

The minister further said the government was negotiating new Double Taxation Avoidance Agreements (DTAAs) with various countries.

Besides, it has also taken steps to update the article concerning exchange of information in existing DTAAs to specifically allow for exchange of banking information and information without domestic interest, he said.

The minister added that India has also decided to negotiate Tax Information Exchange Agreements (TIEAs) with priority countriesjurisdictions.

In the last two years, India has concluded negotiation of 16 TIEAs, 18 new DTAAs and renegotiation of 21 existing DTAAs, the minister said.

The Washington based GFI is engaged in research in the field to curtail illicit financial flows and enhance global development and security.