Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 News - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Category: ?
Categorized by AI
---- All Categories ----
  • ---- All Categories ----
  • Income Tax
  • GST
  • Customs, DGFT & SEZ
  • FEMA & RBI
  • Corp. Laws, SEBI & IBC
  • PMLA, Black Money & ED
  • Budget
  • News and Press Release
  • PTI News
Month:
---- All Months ----
  • ---- All Months ----
  • January
  • February
  • March
  • April
  • May
  • June
  • July
  • August
  • September
  • October
  • November
  • December
Year:
---- All Years ----
  • ---- All Years ----
  • 2026
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    UCO Bank launches IFSC Banking Unit at GIFT City
    Banking sector has key role to play as India on way to become 3rd largest economy: Gujarat CM
    India's exports to US rise 12.85 pc in Jul; shipments to China jump 64.57 pc: Govt data
    50 tonnes of copper without e-way bills seized by Delhi GST, Railways joint team
    India's exports surge 19.6 pc in Jul; trade deficit widens to six-month high
    CBI ARRESTS CGST SUPERINTENDENT IN BRIBERY CASE
    The cumulative exports (merchandise & services) during April-July 2026-27 is estimated at US$ 316.42 Billion, as compared to US$ 279.63 Billion in Apr...
    Unlimit Mobile Ties Up with ICICI Bank Canada, RBC Royal Bank to Add Mobile Connectivity Benefits to Student GIC Journey
    Standard Chartered Accelerates India's GCC Growth with its Global Banking Expertise and 25 Years of GCC Experience
    IFSCA Grants Nexent Capital GIFT City Investment Banking License
    India's exports rise 19.63 pc to USD 44.24 bn in Jul; trade deficit widens to $31.98 bn
    Vizhinjam port to commence EXIM operations from Aug 18: Kerala CM Satheesan
    Ratul Puri: Beyond Low-Cost Power to Clean Energy Reliability
    PMS Bazaar Collaborates with NSDL Database Management Limited (NDML Accreditation Agency) to Expand Access to SEBI Accredited Investor Certification
    Compounded annual growth rate of Manufacturing GVA at constant prices (2022-23 base) as per revised series during 2022-23 to 2025-26 is 10.88%
    National Company Law Tribunal (NCLT) Launches e-Inspection and e-Certified Copy Services
    The Government of India to launch the Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) in the Union Territories of Chandigarh ...
    India and the Southern African Customs Union (SACU) sign Terms of Reference (ToR) for negotiations towards a Preferential Trade Agreement
    Airtel ends all prepaid mobile plans offering 1.5 GB data per day with unlimited calls
    ED arrests IBC resolution professional
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    News
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    August 13, 2026
    Show AI Summary
    International banking unit expands cross-border financing, trade finance and foreign-currency service access through GIFT City operations.
    UCO Bank has launched an International Financial Services Centre Banking Unit at GIFT City to provide permitted international banking services. The unit offers trade finance, external commercial borrowings, foreign-currency loans, loan syndication, treasury services and other permitted financial services. It serves Indian corporates, exporters, importers, financial institutions, overseas businesses and other eligible customers requiring cross-border financing and access to global financial markets. FCNR(B) deposits are also offered through the unit.
    August 13, 2026
    Show AI Summary
    Last-mile credit access is prioritised through timely lending, wider beneficiary coverage, digital support and stronger fraud vigilance.
    Banking-sector participation is emphasised through last-mile credit access for MSMEs, women entrepreneurs, rural artisans, small farmers and other underserved beneficiaries. Banks are urged to expedite government-scheme applications, maximise coverage and use technology for timely financial support. Industrial-policy assistance and incentives cover startups, SC/ST entrepreneurs, persons with disabilities and first-generation entrepreneurs. Greater coordination, expanded village banking access, and vigilance against cyber fraud and mule accounts are also prioritised.
    August 13, 2026
    Show AI Summary
    Merchandise trade growth saw rising exports to major markets alongside increased imports and continuing United States trade-pact negotiations.
    India's merchandise trade data records increased July exports to the United States and China, alongside growth in imports from both markets. Exports to Singapore, the United Arab Emirates, the Netherlands, Germany, South Africa, Tanzania, Australia, Malaysia, Sri Lanka, Italy and Vietnam showed positive growth, while July exports declined for the United Kingdom, Bangladesh, Saudi Arabia and Nepal. Imports also increased from Russia, Korea, Singapore, Germany, Oman, Malaysia, Taiwan and Brazil. India and the United States are negotiating a trade pact amid an additional United States tariff on India.
    August 13, 2026
    Show AI Summary
    GST transport documentation enforcement addresses freight movement of metals without valid e-way bills and invoices under applicable rules.
    GST enforcement action led to the seizure of copper and aluminium ingots transported by freight train without valid e-way bills and invoices. The metals were found in three train wagons during inspection of parcel cargo. Further proceedings are to be undertaken under applicable GST rules concerning movement of goods without prescribed transport documentation.
    August 13, 2026
    Show AI Summary
    Merchandise trade deficit widens as import growth outpaces exports despite strong petroleum, electronics and engineering shipments.
    Merchandise trade in July 2026 saw exports rise 19.63 per cent and imports increase 17.52 per cent, widening the trade deficit to a six-month high. Petroleum products, electronics, engineering goods and marine goods supported export growth, while crude oil and several commodity and capital-goods categories increased imports. During April-July 2026-27, faster import growth widened the cumulative merchandise trade deficit compared with the corresponding prior-year period.
    August 13, 2026
    Show AI Summary
    Bribery allegations in GST enforcement prompted arrest after alleged payment demand to avoid a tax-liability notice.
    Bribery allegations involving GST enforcement led to the arrest of a CGST Superintendent after a complaint alleged that payment was demanded from a private company to avoid issuance of a tax-liability demand notice and to close the matter. A trap operation resulted in the public servant being apprehended while allegedly accepting part of the demanded bribe, and the amount accepted was recovered. Searches were undertaken, and investigation remained ongoing.
    August 13, 2026
    Show AI Summary
    Trade performance shows rising merchandise and services exports, but faster import growth expands the overall trade deficit.
    India's combined merchandise and services exports and imports increased in July 2026 and April-July 2026-27, while the overall trade deficit widened. Cumulative exports were estimated at US$ 316.42 billion and imports at US$ 365.85 billion, resulting in a trade deficit of US$ 49.43 billion. Merchandise exports, non-petroleum exports, and exports excluding petroleum and gems and jewellery grew, led by petroleum products, electronic goods, engineering goods and chemicals. Services trade recorded a cumulative surplus of US$ 69.17 billion.
    August 13, 2026
    Show AI Summary
    Student GIC referral programmes integrate connectivity credits with funding verification and post-arrival banking arrangements for eligible international students.
    Referral arrangements connect mobile connectivity benefits with the Student Guaranteed Investment Certificate application journey. Applicants may access an online portal through a referral link, submit documents, complete know-your-customer verification, and fund the GIC from permitted Indian bank accounts in no more than two transactions. After arrival, students may activate the GIC account and open a linked bank account for receipt of GIC transfers. Eligible verified applicants receive non-cash mobile credits usable only against mobile bills, subject to a cap on the bill portion payable through credits.
    August 13, 2026
    Show AI Summary
    Global Capability Centre banking support connects offshore and onshore operations to simplify financial management and enable cross-border expansion.
    Global Capability Centre banking support is positioned around connected offshore and onshore banking, international network access, digital banking platforms, and expertise in treasury centres, cross-border corporates, and evolving GCC operating models. The approach seeks to simplify financial operations and support GCC expansion across global markets. India's GCC ecosystem is characterised as a leading global capability hub, with capability centres evolving into strategic enterprise hubs requiring support for operational and financial complexities across markets.
    August 13, 2026
    Show AI Summary
    Investment banking registration enables regulated cross-border offerings, listings, debt transactions and capital-market advisory through GIFT City.
    IFSCA registration under the IFSCA (Capital Market Intermediaries) Regulations, 2025 authorises Nexent Capital IFSC Private Limited to operate as an investment banker from GIFT City. Permitted activities include management of initial and follow-on public offerings, SPAC and secondary listings, depository receipt issuances, debt capital-market transactions, and other capital-market advisory mandates. The firm proposes to provide transaction structuring, listing-readiness, execution and post-listing capital-markets support for companies seeking capital raising and listing opportunities through GIFT City's exchanges.
    August 13, 2026
    Show AI Summary
    Merchandise export growth was driven by petroleum, electronics, engineering and marine goods, while rising imports widened the trade deficit.
    India's merchandise exports increased in July, while imports also rose and widened the trade deficit. Export growth was attributed to higher overseas shipments of petroleum products, electronics, engineering goods and marine goods. Exports and imports both recorded growth during the April-July fiscal period, and exports to West Asian countries increased in July.
    August 13, 2026
    Show AI Summary
    EXIM operations at international seaport to commence after customs clearance, bonded-area establishment, and temporary highway connectivity.
    Vizhinjam International Seaport is scheduled to commence EXIM operations after Customs clearance, issuance of Customs notifications, establishment of a Customs-bonded area, and temporary connectivity to NH-66. The port had previously handled transshipment operations. A proposed transfer of a stake in the port concessionaire to a foreign shipping company remains under committee examination and requires Central Government consideration of strategic and security aspects.
    August 13, 2026
    Show AI Summary
    Renewable energy reliability requires storage, grid readiness and ancillary service markets alongside competitive clean-power procurement.
    Renewable energy procurement is shifting beyond lowest tariffs towards dependable, dispatchable and affordable clean power, assessed through capacity value, balancing capability and system economics. Storage-backed renewable and hybrid projects can improve renewable utilisation, reduce variability and curtailment, and support peak demand. Higher renewable penetration also requires supportive storage policies, timely approvals, aligned intrastate transmission planning, stronger distribution infrastructure, and market mechanisms for ramping reserves, frequency response and fast-response balancing services.
    August 13, 2026
    Show AI Summary
    Accredited Investor certification facilitates eligible investors' access to alternative investment products, lower thresholds and applicable regulatory flexibilities.
    SEBI's Accredited Investor framework enables eligible investors and entities to obtain certification that may allow lower minimum investment thresholds for Portfolio Management Services, Alternative Investment Funds and other alternative investment products, along with applicable regulatory flexibilities. PMS Bazaar and NSDL Database Management Limited's Accreditation Agency facilitate end-to-end applications, subject to required documentation and prescribed payment. Assistance is available to individual investors and eligible clients of investment providers without additional platform, service or processing charges, while prescribed certification fees remain payable.
    August 13, 2026
    Show AI Summary
    Manufacturing GVA growth under the revised national accounts series highlights stable sectoral contribution and resilience-focused industrial measures.
    Manufacturing performance is assessed under the revised National Accounts Statistics series using 2022-23 as the base year. Manufacturing's share of total Gross Value Added at current prices remained broadly stable through 2025-26, and Manufacturing GVA at constant prices achieved a compounded annual growth rate of 10.88% from 2022-23 to 2025-26. Production Linked Incentive schemes, logistics and industrial-corridor measures, semiconductor initiatives, and MSME support seek to strengthen domestic manufacturing, diversify supply chains, reduce import dependence, and improve resilience.
    August 13, 2026
    Show AI Summary
    Electronic inspection and certified copies expand digital access to judicial records while supporting efficient case management and reduced delays.
    NCLT has launched e-Inspection and e-Certified Copy Services for faster and more convenient access to judicial records and certified copies by advocates, litigants and other stakeholders. The services support a technology-enabled Registry framework and transparent, efficient justice delivery. Pendency monitoring, workload redistribution, Special Benches, maximisation of court time, and registration and listing guidelines are intended to improve case management, optimise limited judicial resources and reduce avoidable delays.
    August 13, 2026
    Show AI Summary
    CBDC-based food subsidy transfers enable eligible beneficiaries to use Digital Rupee wallet credits for traceable foodgrain purchases.
    CBDC-based Direct Benefit Transfer under the Pradhan Mantri Garib Kalyan Anna Yojana will credit eligible beneficiaries' food subsidies as programmable Digital Rupee tokens directly into CBDC wallets. Beneficiaries may use these credits to purchase foodgrains from empanelled merchants through secure, real-time and traceable payments, replacing conventional bank-account transfers. The model is intended to improve traceability, reduce leakages and cash handling, enable real-time monitoring of subsidy use, and provide a scalable framework for CBDC integration with welfare schemes.
    August 13, 2026
    Show AI Summary
    Preferential trade agreement negotiations begin under agreed terms covering market access, origin rules, trade remedies and dispute settlement.
    India and the Southern African Customs Union have signed Terms of Reference to commence negotiations for a Preferential Trade Agreement. Negotiations are envisaged on trade in goods and market access, rules of origin, customs procedures and trade facilitation, trade remedies including bilateral safeguards, sanitary and phytosanitary measures, technical barriers to trade, dispute settlement, and legal and horizontal provisions. The Terms of Reference establish the negotiating framework only; preferential tariff treatment and other operative commitments depend on conclusion of a final agreement.
    August 12, 2026
    Show AI Summary
    Prepaid plan restructuring eliminates mid-tier daily-data options and channels subscribers toward higher-priced plans with expanded data access.
    Bharti Airtel has discontinued prepaid plans combining 1.5 GB daily data allowances with unlimited calling, directing subscribers towards higher-priced plans with expanded data access, including unlimited 5G data. The restructuring reduces low-priced unlimited-data offerings and changes the pricing architecture for customers using discontinued mid-tier plans. Management links tariff repair to differentiated mobile-plan categories and sustained average revenue per user growth.
    August 12, 2026
    Show AI Summary
    Insolvency professional conduct faces money-laundering allegations over re-admitted claims, creditor committee changes, and a connected resolution applicant.
    Enforcement action under the Prevention of Money Laundering Act concerns allegations that an insolvency professional re-admitted claims earlier rejected as spurious and fraudulent during the Corporate Insolvency Resolution Process. The alleged re-admission altered the Committee of Creditors' composition and facilitated consideration of a resolution plan allegedly submitted for, and funded through an entity controlled by, a company promoter under investigation for diversion of bank-loan funds. Adverse findings reportedly included acting beyond authority by relying on fabricated and improperly submitted material.

    News

    Back

    All News

    Showing Results for :
    Reset Filters
      No Records Found

      News

      Back

      All News

      whatsappJoin Channel
      Showing Results for : Reset Filters
      Customs, DGFT & SEZ

      Text of the Speech of the Union Finance Minister Shri P.Chidambaram at Xxth Conference of CBI & State Anti Corruption Bureaux on “Building A Criminal Justice System to Deal with Financial Crimes”

      November 12, 2013

      Contents
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Following is the full Text of the Speech of the Union Finance Minister Shri P.Chidambaram at XXth Conference of CBI & State Anti-Corruption Bureaux on “ Building a Criminal Justice System to deal with Financial Crimes” here today :

      “I am happy to address this international conference organised by the CBI on “Evolving common strategies to combat corruption and crime”, and I thank you for the invitation.

      The Central Bureau of Investigation is the premier investigating agency of India. It owes its existence to the Delhi Special Police Establishment Act, 1946. To begin with, it had a limited mandate, namely, to investigate cases of corruption. Over the years, its mandate has expanded. Today, it has three wings: anti-corruption wing, special crimes wing, and economic offences wing. The offences that may be investigated by the CBI are notified by the Central Government under section 3 of the Act.

      Apart from cases of corruption involving public servants and serious conventional crimes, CBI has the power to investigate a number of offences that pertain to what can be broadly described as the financial sector. I may make particular reference to some offences that fall within the jurisdiction of CBI. They are:

      Cases in which the interests of the Central Government or of any public sector project or undertaking, or any statutory corporation or body set up and financed by the Government of India are involved

      Breaches of import and export control orders

      Serious cases of fraud, cheating and embezzlement relating to public joint stock companies

      It is evident that the scope of the jurisdiction of CBI is quite large. It extends to the core of the financial system which comprises tax authorities, banks, insurance companies, provident fund and pension fund authorities, regulators such as SEBI, IRDA and PFRDA, and other important players in the financial sector. Besides, there are no financial crimes which do not also attract the provisions of laws dealing with conventional crimes such as the Indian Penal Code. Virtually every serious financial crime will also attract one or more IPC provisions such as section 192 (fabricating false evidence), section 405 (criminal breach of trust), section 415 (cheating), section 463 (forgery) etc.

      New Challenges in a Market Economy

      Since 1991, we have transited from a closed and controlled economy to an open and market economy. The transition has brought in its wake both new opportunities and new challenges. Our laws have lagged behind. Hence, as you are perhaps aware, in March 2011, Government constituted the Financial Sector Legislative Reforms Commission “with the view to rewriting and cleaning up the financial sector laws to bring them in tune with the current requirements.” The Commission submitted its report in March, 2013. One of the recommendations of the Commission is on ‘market abuse’. ‘Market abuse’ has been defined as meaning insider trading, abuse of information and securities market abuse. The Commission has recommended that market abuse and attempting or abetting market abuse must be made offences and must be punished with penalties extending to three times the illegitimate gains made or losses caused as well as with imprisonment. It will therefore be evident that as new challenges emerge, new laws will be made, new offences will be defined, and new responsibilities will fall on investigating agencies.  

      A Time to Dispel Some Myths

      Before I continue with the topic of my speech, forgive me for a brief digression. There are several myths about the CBI ranging from the celebrated epithet “caged bird” to the abusive nomenclature “Congress Bureau of Investigation”. None of the descriptions is correct or even well-meaning. Some myths are carefully fostered and propagated in order to serve an immediate or narrow self-interest. In a lighter vein, I may say that sometimes the CBI itself pretends to be a “helpless victim” when it pleads for more powers and greater autonomy! Hardly anyone seems to notice the contradiction when the same person pleads in favour of ‘more powers to CBI’ and also rails against the alleged ‘excesses of the CBI’. And hardly anyone pauses to ask how could the CBI do the bidding of a political party that has not been in government during 12 years out of the last 35 years!

      In my view, the CBI is as good an investigating organisation as any other in the world. We are proud of the achievements of the CBI. It has performed a difficult role especially when the primary responsibility for enforcement of laws lies with the State Governments. Let me also remind you that, save in certain cases, an offence falling under the jurisdiction of the State Police cannot be investigated by the CBI without the express consent of the State Government concerned. The best testimony to CBI’s credibility is the numerous demands that are made for cases to be ‘taken over’ by the CBI rather than be investigated by the State Police. Every such demand is a tribute to the CBI.

      As we look forward to the next 50 years, the need for an independent, impartial and capable central investigation agency is more imperative than ever. Whether we think about corruption or financial crime or terrorism, the challenges faced by India will be greater than ever. Therefore, it is time to outline the contours of the challenges that an investigating agency will face and what the investigating agency will be required to do in the next 50 years. It is time also to start rethinking the legal foundations of the agency so as to achieve clarity on objectives, powers and accountability.

      Financial Crimes

      My focus today will be on financial crimes.

      Yesterday, the Prime Minister made a thoughtful speech and drew the line between policy-making and policing. I urge all of you to reflect on that speech carefully. In my speech today I wish to go into some detail on the legal and technical issues that are involved in the apparent conflict between policy-making and policing.

      Safety is a ‘public good’. Public good is defined around two tests: non-rival and non-excludable. Safety is non-rival: my safety while walking on a street does not reduce your consumption of safety. Safety is non-excludable: when one more child is born into the world, it is not possible to exclude that child from the umbrella of safety. Safety satisfies both tests and it is a public good. A fortiori, safety of the financial system is a public good. Safety is the pre-requisite for an open or market economy, which is the highway to prosperity. If we fail on safety, we will fail to get growth.   Providing safety is the job of the Government. A sound criminal justice system must ensure safety of the financial system. It must protect the financial system against theft, fraud, forgery, mis-selling, money laundering, hacking, cyber attacks etc. Registration and investigation of offences is the starting point of a sound criminal justice system. Hence the need for a first rate investigating agency.

      An investigating agency must build capacity. I have no doubt that a trained police officer is capable of handling financial crimes. There is a strong degree of commonality among all kinds of crimes, and enforcement processes are similar. I was told that an IPS officer was brought into SEBI some years ago as an Executive Director and he pioneered many new methods of investigation which yielded permanent improvements in the manner in which SEBI works. The point that I wish to make is the need for bringing a variety of skilled persons into the investigating agency. In the case of CBI, it must recruit bankers, accountants, lawyers, insurers, fund managers and securities experts, train them in the substantive and procedural laws, and turn them into first rate investigators. Conversely, since police officers are highly educated and many hold post graduate or doctoral degrees in a variety of subjects, they could be trained in financial laws and equipped to deal with financial crimes. It is the integration of skills possessed by police officers and skills possessed by subject matter experts that will make the CBI a first rate investigating agency.

      The second limb of capacity is technology. Financial crimes are committed using the most advanced technology, including sophisticated software. The investigating agency must have technological capability matching the offender’s capability. It must have software that is able to search millions of pieces of information and locate and unravel the source of the crime, the key persons, and the complex web of activities that constitute the crime.

      Financial crimes are no longer confined to the boundaries of a State. Many financial crimes span several countries. Even if the key criminals belong to one country, they use banks, post offices, telecom service providers, servers, satellite links, airlines and money exchanges to rob and cheat people and to launder and stash illegal money. These criminal networks cannot be exposed by an agency acting alone. There must be a robust mechanism for exchange of tax and financial information among the countries of the world. Fortunately, more countries are entering into agreements for tax information exchange and mutual assistance in criminal matters. CBI, as the nodal agency in India for Interpol, is best placed to join a network of investigating agencies around the world for exchange of information and for mutual assistance in criminal matters. The instruments that are now available to CBI, including the agreements referred to, must be strengthened.

      I may also point out that there are usually three groups of persons involved in financial crimes. Firstly, there are the core conspirators. Then there are accomplices in the financial system and, finally, there are their accomplices in Government departments or regulatory bodies. Any thorough investigation must uncover all the groups of persons and all the links that made the conspiracy possible. All the groups must suffer punishment. Usually, the face of the crime is the face of the principal offender and with his/her arrest and arraignment the excitement usually dies. Unfortunately, this will let the other conspirators get away – only to commit more financial crimes after lying low for some time. It is therefore important that the investigating agency identifies all the individuals who collaborated in the crime and brings to justice every one of them. That alone will establish deterrence.

      Summing up, an investigating agency must have a variety of skilled persons, advanced technology, good collaboration with other investigating agencies and standard operating procedures that will uncover all the participants involved in a financial crime.

      Interpreting and Applying Laws

      Let me now turn to the vexed question of interpreting and applying criminal laws to financial transactions. As a rule of criminal jurisprudence, a crime requires mens rea, that is a criminal state of mind. I am aware that there are exceptions and some offences are charged on the principle of ‘strict liability’. In my view, the principle of strict liability may not apply without qualification to financial crimes, except in the small number of cases where there is a clear and unambiguous rule of conduct and the law unambiguously stipulates that any violation of that rule would be considered an offence. Ordinarily, a financial crime would arise from either unlawful gain or unlawful loss and, in such cases, the law could either stipulate proof of the state of mind or presume a state of mind to cause the unlawful gain or the unlawful loss. So, in financial crimes, mens rea or the state of mind must be invariably proved or presumed from certain facts. This, in my view, is the correct approach to financial crimes.

      There are cases where the CBI – and sometimes the courts – have interpreted provisions of law to exclude mens rea. A frequently cited example is section 13(1)(d)(iii) of the Prevention of Corruption Act 1988. That provision reads as follows:

      “If he, while holding office as a public servant, obtains for any person any valuable thing or pecuniary advantage without any public interest”

      A close reading of the above provision does not, in my view, rule out mens rea. The words “without public interest” imply that the offender must have committed the act although he knew that there was no public interest. In a case arising under this section, if the accused is able to show that there was indeed some public interest, in my view, the offence would not be made out and the accused would be entitled to an acquittal. I would once again commend the prudent approach to financial crimes that I outlined above, and that is the requirement of mens rea or state of mind, unless it is unambiguously excluded by the express language of the law.

      Let me illustrate with reference to certain kinds of financial transactions. Banking is a business, so banks lend. In some cases they lend at the prime lending rate, in some cases below that rate, and in some cases at the base rate. Interest rates can be reset. Similarly, insurance companies invest funds by picking and choosing winners. They buy and sell financial assets. These decisions are taken based on facts and circumstances that are available at the time the decisions are taken. When market conditions change, a loan may turn into a non-performing asset. An investment may collapse in value and result in a loss.   How should one characterise the original decision? It may have been a poor decision, it may be a decision that turned out to be a wrong decision, but does that make the decision an offence or the decision maker a criminal? I think an investigating agency should tread carefully before it reaches the conclusion that a business or commercial decision, taken on the basis of available facts, amounts to a crime. This is where the state of mind comes in. In my view, it would be wholly opposed to common sense and fair play if the investigating agency ignored the state of mind and, absent any motive or criminal intent, jumped to the conclusion that a business or commercial decision amounted to a crime.

      Policy Making vs Policing

                 Finally, I would caution investigating agencies to respect the line that divides policy-making and policing. An offence is committed when a prescribed rule of conduct is violated. If there is no prescribed rule, or if there is no violation of a prescribed rule, there is no offence. It is not the business of the investigating agency to lay down a rule of conduct; nor is it the business of the investigating agency to presume a rule of conduct. Even where a rule has been prescribed, if there is a policy behind that rule, it is not the business of the investigating agency to question the wisdom of that policy or to suggest a different policy that would be better in the view of the investigating agency. The investigating agency must confine itself to the question whether there has been a violation of a laid-down rule of conduct.

      One good test whether a rule of conduct has been wilfully violated is to ask whether there is a speaking order in support of the decision that is the subject matter of investigation. Ordinarily, a speaking order should be a complete answer to a criminal investigation. A speaking order may be right or wrong on the merits of the case, but as long as there are reasons given in support of a decision, such reasons should ordinarily rule out any criminal state of mind. Unfortunately, there are a number of cases where investigating agencies, and other authorities like the C&AG, have overstepped their limits and attempted to convert bona fide executive decisions into either crimes or abuse of authority.

      The Three Pillars

      In conclusion, let me state the fundamentals of how an investigating agency needs to be constructed in the emerging new India. There are three pillars:

      ·         Clearly defined objectives

      ·         Precisely enumerated powers

      ·         Carefully designed accountability mechanisms

      It is this approach which informs the FSLRC report to which I referred earlier. I would commend the same approach while redesigning our investigating agencies, of which the CBI is the premier agency.

                 I am happy to see the enthusiastic response to this Conference and the wide coverage it has received in the media. I wish your deliberations success and I wish the CBI many more years of good and dedicated public service.

                 Thank you for your patience and courtesy”.

      Topics

      ActsIncome Tax