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August 2011

Will the SIT on black money solve the problem?

By Raman Jokhakar, Tarunkumar Singhal, Chartered Accountants
Reading Time 3 mins
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It is fundamental indeed that the Constitution empowers the Supreme Court to make orders necessary to ensure that public interest is served. The Parliament and State Legislatures are given powers to make laws and courts are constituted to enforce them. There is no possibility of a conflict of interest or of the jurisdiction of Court and Legislatures if they keep their functions strictly within the limits prescribed by the Constitution or the laws made under it.

Why, then, is there discord or murmur when courts issue orders commanding the authorities to enforce laws and in cases in which such authorities, particularly executive authorities, fail to act in national and public interest? It will not be correct to say that in making such orders Courts encroach on the jurisdiction of either the Legislature or the executive authorities who are empowered to act for enforcing such provisions.

No one can say depositing money and transactions and deposits in a foreign bank in violation of laws should be ignored and such violators allowed to go free without being punished and that it will not affect national security and public interest. Against this background, let us appreciate the value of the appointment of the Special Investigation Team (SIT) by the Supreme Court to ensure that laws are implemented and black money is brought under proper action.

The point that the appointment of an SIT is innovative is uncalled for and misconceived. The Court has appointed an SIT, for example, to investigate the Gujarat riot cases. This is the first time, however, that the Court has appointed an SIT in a case associated with finance and black money. This has been done in the interest of the State and public interest. When the authorities concerned have failed to act, setting up an SIT is a noble cause and a step that urgently needed to be taken. Arguments that there are agencies assigned for such work and the Court should have exercised discretion to direct any such authority to take steps instead of appointing an SIT are also uncalled for. The Bench of Judges that has passed this order was also conscious of this fact. The SIT is constituted by taking officers from all such relevant agencies. Since any such agencies have limited powers, one or the other agency alone may not be able to locate and find black money, fix responsibility for violations and prosecute.

No one should feel hurt if a Court asks authorities to act in the interest of the State and public interest. After all, the Court has issued such orders only when others designated to act failed to do so. Such orders are a welcome relief in the prevailing situation.

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