Constituted on the orders of the Supreme Court, the SIT's second report to the court made 13 recommendations including making PAN mandatory for all cash and cheque transactions above Rs 1 lakh and imposing a threshold of Rs 10-15 lakh on holding and transporting cash to check unaccounted money to a large extent.

The Special Investigation Team (SIT) also flagged existence of black money in mining, ponzi scheme and iron ore exports as well as money couriers, called 'Angadias', dealing in huge sums of money outside the banking system.

The SIT said that making tax evasion of Rs 50 lakh or more a 'predicate offence' would allow necessary action under the Prevention of Money Laundering Act (PMLA).
"This would control holding of unaccounted money to a large extent. This would also control transfer of unaccounted cash from one destination to other, which at present is rampant, may be Angadias or by other means," it said.

The SIT has also suggested setting up of an institutional mechanism to examine mismatch between export/import data with corresponding data of other countries on a quarterly basis to unearth black money.

In case it is found that an individual or entity owns a property abroad in violation of the law, a provision should be made in the FEMA to provide for seizure and confiscation of property of equivalent value within the country.


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