US seeks details from HSBC on illicit accounts stashed in India
09 Apr 2011
Even as India gets agitated over black money stashed abroad, the US taxman is concerned about black money being stashed in India. The US government has sought permission from a federal court to ask for information from London-based HSBC Bank about Americans who may be hiding money in accounts in India to dodge taxes.
The Department of Justice said on Thursday it is seeking an order from a San Francisco court to authorise the Internal Revenue Service (IRS) to serve a so-called 'John Doe' subpoena on HSBC to obtain information about illegal wealth stashed in India.
The request follows the indictment of Indian American businessman Vaibhav Dahake in January by a grand jury in Newark, New Jersey, on charges of conspiracy to defraud the United States by using undeclared accounts in the British Virgin Islands and at HSBC India. Prosecutors said employees of HSBC Holdings had assured Dahake that accounts maintained in India would not be reported to the IRS.
In court filings, prosecutors said the Dahake case "is not an isolated incident".
HSBC India opened a "representative office" in 2002 at a New York City HSBC branch to enable non-resident Indians (NRIs) living in the United States to open accounts in India. In 2007, HSBC India opened a similar office in Fremont, California, the prosecution said.
According to court documents, HSBC informed the IRS last September that at least 9,000 US "premier" or wealthy citizens had deposits with HSBC's Indian arm.
