What is the Aishwarya Rai Bachchan and Panama Papers controversy? 9 points
Bollywood actor Aishwarya Rai Bachchan is in the headlines for all the wrong reasons. The actor was summoned by the Enforcement Directorate on December 20 over the Panama Papers leak case and questioned for nearly 6 hours.
Late-night visuals of Aishwarya Rai Bachchan returning to Mumbai after appearing before Enforcement Directorate in Delhi, in connection with Panama Papers case. pic.twitter.com/DlWtoUyVSt
— ANI (@ANI) December 21, 2021
The Panama Papers case is back in the news after quite some time. The leak became public in 2016 and the ED had since started an investigation. The case pertains to the leak of documents from Panamanian legal firm Mossack Fonseca, which blew the lid off how the rich and the powerful evade taxes and hoard undeclared wealth.
Aishwarya Rai Bachchan is among nearly 500 Indians named in the case.
#WATCH Delhi | Aishwarya Rai Bachchan leaves from Enforcement Directorate office. She was summoned by ED in connection with the Panama Papers case. pic.twitter.com/zqxJlR7iPT
— ANI (@ANI) December 20, 2021
Here are 9 points explaining how Aishwarya is linked to the Panama Papers and what the case is all about:
1. THE BACHCHAN FAMILY
Aishwarya Rai Bachchan is not the only Bachchan who has been named in the Panama Papers leak case. Her father-in-law Amitabh Bachchan has also courted unwanted attention because of the leaks.
Apparently, the Bachchans were helming several companies based in foreign countries with massive capital. In 1993, Amitabh Bachchan was named the director of 4 companies; 3 based in the Bahamas and 1 in the Virgin Islands.
The Panama Papers allege that Amitabh Bachchan is the director of tax haven registered companies, among which are Lady Shipping Ltd and Tramp Shipping Ltd. I mean nothing sounds fishy about that.
— Kajol Srinivasan (@LOLrakshak) December 20, 2021
Aishwarya Rai Bachchan was also reportedly named the director of the companies but later declared a shareholder. Aishwarya’s parents and brother Aditya Rai were also declared shareholders. One of the companies was dissolved in 2008, reportedly soon after Rai wed Abhishek Bachchan.
Abhishek Bachchan was also grilled by the ED just a few weeks ago; in November this year.
2. WHAT DID ED ASK AISHWARYA?
- Amic Partners was a company incorporated and registered in the British Virgin Islands in 2005. What association do you have with this company?
- Do you know the law firm where Mossack Fonseca registered the company?
- This company's directors include you, your father, your mother, and your brother. What can you say about this?
- The initial paid-up capital is US $50,000. Each share was worth US $1, and each director had 12,500 shares. Why did you become a shareholder from your position as a director?
- Why was your status changed to shareholder in June 2005?
- Why did the company become inactive in 2008?
- Was permission from the RBI sought for financial transactions?
3. EVADING SUMMONS
This is not the first time actor Aishwarya Rai Bachchan was summoned for questioning by the ED. Rai evaded summons twice before, seeking more time.
4. THE ONCE-UPON-A-TIME HIGHEST TAXPAYER
Veteran actor Amitabh Bachchan made headlines several times in the past for being the highest taxpayer in the country. For 2012-13, Amitabh Bachchan was named the individual highest advance taxpayer in Central. The amount came up to Rs 25 crore.
However, the Bachchan family combined – that is Amitabh Bachchan and Aishwarya Rai Bachchan – paid taxes up to Rs 50 crore, the highest during the period.
5. JAYA BACHCHAN’S CURSE
While her daughter-in-law was being grilled by the ED, Samajwadi Party MP Jaya Bachchan lost her cool in Rajya Sabha over a ‘personal remark’ made by another member. The upper house was discussing amendments to the narcotics control law (NDPS Act).
Jaya Bachchan fuming at house members protesting during her speech, and cursed out at the BJP saying, “What is going on? This is terrible... Aap logon ke bure din aayenge (Your bad days will come)."
6. OVER RS 20,000 CRORE IN UNDISCLOSED CREDIT
The government informed the Parliament that the 930 India-linked entities in the Panama and Paradise Paper leak amount to nearly Rs 20,353 crore undisclosed credit. The Minister of State for Finance Pankaj Chaudhary in a written reply in Rajya Sabha said that so far, nearly Rs 153 crore was collected in taxes in the Panama and Paradise Paper case.
The Paradise Paper leak is similar to the Panama Paper leak case. The Paradise Papers were first published in 2017, a year after Panama Papers.
7. PMLA CASE LODGED IN THE MATTER
The ED, which has been investigating the Panama Papers case since 2016, has registered a money laundering case under the Prevention of Money Laundering Act, 2002 (PMLA).
Further, the Income Tax Department will take action against anybody found involved in violation of laws like the Income Tax Act, 1961, and Black Money and Imposition of Tax Act, 2015, etc.
8. PANAMA PAPERS EXPOSED ILLEGAL ACTS
The nearly 11 million document leak of the Panamanian law firm Mossack Fonseca in 2015 revealed details of approximately 2,14,488 offshore entities, hundreds linked to India. The leaked documents disclosed financial information on prominent people around the world – including world leaders, celebrities, tycoons, etc – who paid the Panamanian firm and used the investment to evade taxes and international sanctions.
9. 200 COUNTRIES, 12 WORLD LEADERS, POLITICIANS INVOLVED
From Russian President Vladimir Putin to Aishwarya Rai Bachchan, several prominent people in nearly 200 countries were named in the leak. Other than the Bachchans, actor Ajay Devgn, India’s largest real estate developer and founder of DLF KP Singh, Sameer Gehlaut, the owner of real estate firm Indiabulls, etc. were also named.