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
    ED arrests Chhattisgarh Congress leader in liquor 'scam' case
    ED arrests Chhattisgarh Congress leader in liquor scam case
    Register FIR in cases of missing persons immediately, irrespective of age or gender: SC
    ED freezes 182 bank accounts, seizes Rs 1 cr cash in connection to Rs 2k crore chit-fund scam
    Rupee falls 8 paise to 95.38 against US dollar in early trade
    Punjab Assembly passes nine key bills
    Mumbai court denies nod to Nirav Modi's sister to record her statement via video link in PNB case
    'Organised loot' of Rs 2.86 lakh crore from people's pockets: Surjewala accuses govt
    Naresh Goyal seeks discharge from money laundering case; court asks prosecution to reply to plea
    Parliamentary panel seeks details on Railways’ efforts to boost domestic bullet train capabilities
    Haryana CM Saini launches MSME and Export Promotion Policy 2026
    TCS receives employee data leak alerts; says no impact to customer info
    APEDA Facilitates First-Ever Export of Mustard Honey by Dergang FPO from Tripura to Dubai
    Parliament passes The Bankers' Books Evidence Bill, 2026
    DRI uncovers another clandestine drug manufacturing unit in Maharashtra
    Delhi HC gives Kejriwal 4 weeks to respond to ED pleas against acquittal in two cases
    Pesticide residues found in 58 food samples tested in Kerala, says Minister Siddique
    DGFT Removes Physical Duty Payment Challans for Export Obligation Discharge Certificate Applications under Advance Authorisation and Export Promotion ...
    TRAI directs use of 1601-series for service, transactional calls by utilities, logistics cos
    Nagaland tax revenue rises to Rs 1,597 crore in FY'26
❯❯
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 11, 2026
    Show AI Summary
    Money laundering investigation in alleged liquor scam leads to arrest and proposed custodial-remand proceedings under anti-money-laundering law.
    Money laundering investigation concerning an alleged liquor scam in Chhattisgarh led to the arrest of Congress leader Ramgopal Agrawal under the Prevention of Money Laundering Act. Custodial remand is to be sought for interrogation. The allegations concern an alleged syndicate that purportedly controlled the state excise department, enabled illegal liquor sales and distributed resulting commissions. Chargesheets name political figures, excise officials and officials associated with the Chief Minister's Office.
    August 11, 2026
    Show AI Summary
    Money-laundering investigation into an alleged liquor scam leads to arrest and proposed custodial interrogation under the prevention law.
    Money-laundering investigation under the Prevention of Money Laundering Act concerns an alleged liquor scam in Chhattisgarh. A former state political party treasurer has been arrested for alleged involvement and is to be produced before a local court for a request for custodial interrogation. The alleged scheme is stated to have involved control of the state excise department by a criminal syndicate, with multiple accused named in six chargesheets.
    August 11, 2026
    Show AI Summary
    Immediate FIR registration for every missing person is mandatory, with missing children treated as suspected kidnapping or abduction cases.
    Immediate FIR registration is required whenever information is received that any person is missing, irrespective of age or gender, without preliminary inquiry. Missing-person FIRs must include relevant provisions concerning kidnapping and trafficking. A missing child must be treated from the outset as a suspected case of kidnapping or abduction. States and Union Territories may face contempt action for non-compliance. Traced children should ordinarily be restored to their families within 24 hours unless trafficking or exploitation by the family is suspected.
    August 11, 2026
    Show AI Summary
    Money-laundering investigation targets alleged chit-fund collections, investor-fund diversion, concealed deposits, and irregular land transactions.
    Money-laundering investigation into an alleged multi-state chit-fund scheme involved searches at premises linked to Wellfare Buildings and Estates Pvt Ltd and its directors, seizure of cash, vehicles, property-related records and digital devices, and freezing of bank accounts. The alleged scheme concerns unauthorised public-fund collection through land-allotment schemes, followed by closure of operations. Allegations include diversion of investor funds, manipulation of financial statements to conceal deposits, and irregular land transactions intended to suppress actual consideration and evade statutory obligations.
    August 11, 2026
    Show AI Summary
    Rupee exchange-rate pressure intensified as crude oil, regional uncertainty and weaker equities constrained the local currency in early trade.
    Foreign-exchange market conditions placed the rupee under pressure against the US dollar amid West Asia uncertainty, higher crude oil prices, and weaker domestic equity markets. Foreign institutional investor inflows and Reserve Bank of India intervention supported the rupee and limited further depreciation. Reported dollar sales through state-run banks helped contain downside pressure despite rising Brent crude prices and uncertainty concerning the Strait of Hormuz.
    August 10, 2026
    Show AI Summary
    GST refund facilitation expands provisional input tax credit refunds and removes the minimum threshold for export-related IGST refunds.
    Punjab's GST amendments facilitate voluntary compliance and reduce procedural burdens by allowing a 90 per cent provisional input tax credit refund in inverted duty structure cases and removing the minimum threshold for IGST refunds on exported goods. Additional measures cap annual fee increases by private unaided educational institutions, establish digital open universities for technology-enabled higher education, protect trees and green cover, and address common infrastructure, panchayati raj, and contractual engagement of outsourced State personnel.
    August 10, 2026
    Show AI Summary
    Video-conference statements for an approver application were declined, requiring the accused's statement to be recorded before consideration.
    Special CBI Court rejected an accused's request to record her statement through video conferencing in a bank-fraud prosecution. The accused had sought to become an approver, and her statement was required to be recorded before consideration of that application. She and her husband had previously become approvers in a related money-laundering matter involving alleged fraudulent Letters of Undertaking.
    August 10, 2026
    Show AI Summary
    Fuel price transparency highlights allegations over excise duty, consumer retail costs, and profit disclosures by state-run oil marketing companies.
    Fuel pricing, central excise duty and profits of state-run oil marketing companies are examined through allegations that retail fuel prices and tax policy imposed excessive costs on consumers while generating substantial company profits. The criticism contrasts high crude-price periods with lower retail prices and lower excise duty against a later period in which reduced crude prices were allegedly not passed through to consumers. Profit-margin disclosure is also raised as a transparency issue, with parliamentary information described as covering oil prices, global crude prices and company profits.
    August 10, 2026
    Show AI Summary
    Discharge in money-laundering proceedings turns on whether pre-charge material sufficiently establishes the alleged offence.
    Discharge in a money-laundering prosecution was sought before a special PMLA court concerning alleged siphoning and laundering of loans advanced to Jet Airways by Canara Bank. The prosecution was directed to respond, subject to the applicant not seeking adjournment. Discharge is available after filing of a chargesheet and before framing of charges where the material before the court is insufficient to establish the alleged offence. The proceedings arise from a CBI FIR concerning alleged bank fraud involving Jet Airways and associated persons.
    August 10, 2026
    Show AI Summary
    High-speed rail indigenisation and infrastructure performance monitoring require skills development, comparative planning, measurable station assessments and freight-terminal dashboards.
    Parliamentary oversight calls for accelerated indigenisation of high-speed rail components, capacity-building through international expertise, and comparative study of successful high-speed rail systems for future corridors. Redeveloped stations should be assessed through measurable indicators concerning passenger use, accessibility, cleanliness, commercial occupancy, maintenance and feedback, with completed-project practices documented and shared. Operational cargo terminals and cargo-related facilities should be monitored through a digital dashboard covering utilisation, rake performance, mechanisation, connectivity, safety compliance and customer satisfaction.
    August 10, 2026
    Show AI Summary
    MSME and export promotion framework expands finance, technology, infrastructure, sustainability and global-market support for enterprise growth.
    Haryana Progressive MSME and Export Promotion Policy 2026 creates a five-year framework for MSME growth through financial incentives, institutional support, industrial infrastructure, technology adoption and export facilitation. Identified thrust-sector enterprises may receive capital and interest subsidies, stamp duty reimbursement, employment assistance, insurance support, and incentives for automation, artificial intelligence, testing and research. Proposed venture capital and credit guarantee funds seek to improve institutional and collateral-free finance. Export support covers international certifications, credit, insurance, freight, e-commerce, trade fairs, documentation, compliance and buyer connections, alongside sustainability and inclusive entrepreneurship measures.
    August 10, 2026
    Show AI Summary
    Employee data exposure alerts trigger review of alleged password spraying and MFA fatigue, with customer and operational systems unaffected.
    Employee data exposure alerts prompted TCS to review allegations concerning limited basic employee information that appears to be more than four years old. No indication exists that customer data, customer systems, or operational systems have been affected. The alleged vectors involve password spraying and multi-factor authentication fatigue. TCS states that safeguards against these techniques have been in place for more than two years, its controls remain effective, and monitoring and further assessment will continue.
    August 10, 2026
    Show AI Summary
    Mustard honey export demonstrates FPO-led aggregation, quality-focused production and industry collaboration for international agricultural market access.
    Mustard honey export from Tripura to Dubai marks the first international shipment by Dergang Farmer Producer Organisation, supported through export-oriented aggregation and market linkage initiatives. The export creates overseas market access for local beekeepers and farmers, diversifies the honey value chain, and encourages quality-focused production. Industry collaboration supported bee production and an export-oriented supply chain, while capacity building, quality assurance, value addition and market linkages can strengthen agricultural exports and farmer participation in international markets.
    August 10, 2026
    Show AI Summary
    Digital banking evidence gains recognition through a modernised framework for physical and electronic records, with privacy and security safeguards.
    The Bankers' Books Evidence Bill, 2026, modernises the evidentiary framework for bankers' books by permitting banking records to be produced in physical or electronic form in legal proceedings. It recognises electronic, digital and virtual records and enables the Central Government to extend the regime to other regulated financial entities, supporting a uniform financial-sector evidentiary framework. The framework seeks secure and transparent use of banking records while safeguarding customer privacy, confidentiality and data security.
    August 10, 2026
    Show AI Summary
    Illicit opioid medicine exports exposed through concealed cargo, clandestine manufacturing, repacking, and attempted transnational trafficking to Nigeria.
    Illicit manufacture and attempted export of controlled opioid medicines were detected in a network producing, concealing, storing and exporting Tramadol Hydrochloride tablets to Nigeria. A consignment declared as Pregabalin capsules contained concealed Tramadol Hydrochloride and Tapentadol tablets. Investigation identified clandestine manufacture, repacking and preparation for export, with searches yielding tablet-compression machinery and raw materials. Tramadol is a psychotropic substance under the Narcotic Drugs and Psychotropic Substances Act, while Tapentadol is regulated under the Drugs and Cosmetics Act and its rules.
    August 10, 2026
    Show AI Summary
    Summons compliance under anti-money-laundering law faces appellate scrutiny after acquittal over unproven email service allegations.
    Delhi High Court required Arvind Kejriwal to reply to Enforcement Directorate petitions challenging his acquittal in proceedings concerning alleged non-compliance with summonses. The trial court found that the agency had not proved intentional disobedience, service of summons through email, or lawful issuance of electronic summons under the Prevention of Money Laundering Act. The appellate challenge concerns proof of service, validity of electronic summons, and intentional non-compliance.
    August 10, 2026
    Show AI Summary
    Pesticide residue concerns drive organic farming, school agriculture initiatives, infrastructure financing and climate-resilience support for farmers.
    Food-safety concerns arising from pesticide residues and toxic substances are to be addressed through organic vegetable farming, household cultivation and the Kathir school-farming initiative. Kathir provides for institutional farming, teacher and committee support, markets, student training and clubs, with possible academic weightage for agricultural participation. Agricultural infrastructure financing supports post-harvest management, value addition, processing, packing, marketing and exports. Additional measures include banking support, agricultural technology adoption, women-farmer support and schemes addressing climate-related floods and drought.
    August 10, 2026
    Show AI Summary
    Digital EODC processing removes physical duty challans through authenticated payment verification for export authorisation closure.
    Export Obligation Discharge Certificate processing under the Advance Authorisation and Export Promotion Capital Goods schemes no longer requires physical duty-payment challans for voluntary customs-duty payments made on or after 1 August 2026. Authenticated licence-wise payment information is electronically transmitted from Customs/ICEGATE to DGFT systems and mapped to the relevant authorisation. Exporters can verify payment details on the customer portal, while Regional Authorities use corresponding back-office records, replacing manual submission and verification for authorisation closure.
    August 10, 2026
    Show AI Summary
    Trusted service-call numbering requires verified utilities and logistics entities to use dedicated numbers exclusively for transactional and service communications.
    The 1601-series is introduced for verified utilities, courier and logistics entities making service and transactional voice calls. Numbers must be allocated directly to eligible entities, not intermediaries or aggregators, following verification by telecom service providers and an undertaking of exclusive use. Promotional voice calls are prohibited on this series and remain associated with the 140-series. The framework separates these calls from the 1600-series reserved for regulated financial-sector and government-to-citizen communications, supporting consumer recognition of legitimate calls and reducing impersonation risks.
    August 10, 2026
    Show AI Summary
    GST revenue collection drives tax growth while data scrutiny, taxpayer verification, and compliance capacity remain key administrative priorities.
    GST constituted the principal component of tax revenue for the 2025-26 fiscal year. Tax administration faces staff shortages, information-technology upgrade needs, and increased workloads from taxpayer registrations and return filings. Compliance oversight requires GST data scrutiny, risk assessment, identification of unregistered taxpayers, tax-evasion detection, and field verification of high-risk taxpayers. Long-term revenue planning sets progressively higher collection targets through 2063.

    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