The report quoted a source in the government saying that a large majority (about 90 per cent) of the accounts have used RBI’s liberalised remittance scheme (LRS).
Panama-based Mossack Fonseca law firm offices bbc-
An investigation by the International Consortium of Investigative Journalists (ICIJ) and its media partners revealed a set of documents which showed law firm Mossack Fonseca helped clients, including prime ministers, parliamentarians, criminals and movie actors, launder money, dodge sanctions and evade tax with offshore accounts.
An Indian resident is allowed to open a foreign bank account under the LRS for undertaking current or capital account transactions. They can remit money from India – only up to a specified limit within a financial year – as prescribed under the Foreign Exchange Management Act (Fema) of 1999. The limit is $2,50,000 (Rs 1.63 crore).
Further, once the bank account is opened, credit to such an account has to be from the resident’s Indian account through normal banking channels.
The undisclosed accounts will face action under the black money law which was introduced last year.