India / Mauritius Relations: DTAT, Next Round Scheduled for April

Whether in government or in the camp of the President of India, optimism is in order regarding a possible settlement of the dispute Indo-Mauritian about the implementation of the Treaty in the context of fight against money laundering. This is what the Indian press reports this morning on the basis of comments received from Pranab Mukherjee and Navin Ramgoolam with a working session of the Joint Working Group critical announced for April in India. Meanwhile, a company incorporated in the Offshore Infotech Systems Design Ltd, is cited as a stakeholder in the network involved in a scandal jars of wine on the acquisition by the Indian army of twelve helicopters Italy. The Central Bureau of Investigation of India lodged yesterday formal charges under the Criminal Code of India and the Prevention of Corruption Act against a former chief of the Indian Air Force retired, and through Mauritius Christian Michel.

Of Indian journalists accompanying President Mukherjee in Mauritius for the celebration of March 12, returned to New Delhi with the Double Tax Avoidance belief that reviewed and revised Agreement will enter into force at the end of the third round of consultations Bilateral place in India next month. To support these claims, the Indian press is based on comments attributed first to the Prime Minister at a meeting and then on the basis of the statements of the President of India Statements aboard Air India yesterday afternoon.

This possibility has also been reported in today's edition of the Financial Times of London noted that " although the exact contours of the negotiations geared towards curbing the role of and scope for Mauritius-based fictitious companies to route money back into India are not immediately known, Prime Minister Navin Ramgoolam has indicated that the talks are progressing satisfactorily. "

The international business newspaper adds that " Dr Ramgoolam told visiting Indian journalists on Wednesday that both sides had already found some common ground to find a solution to allay each other’s concerns. While India is keen to protect the DTAT from being misused for money laundering, Mauritius, for its part, wants to be seen as not just a tax haven"

For its part, the Indian newspaper Daily News and Analysis cites statements by the President of India, who had initiated the General Anti-Avoidance Rules (GAA) while holding the Finance portfolio in the government of Manmohan Singh the last year. " Two round of meetings of the JWG have already taken place and the third round of the JWG will take place soon. We have narrowed down the areas of divergence. The next meeting has been fixed for sometime in April to resolve issues which will be beneficial and acceptable to both sides "he told Indian journalists during a tour of consultations with the Mauritian authorities.

Pranab Mukherjee, who has not released details of the ground between New Delhi and Port Louis about DTAT, was optimistic about the outcome in this case. " We shall have to wait. But what I feel that there has been some progress and it may be possible to resolve the issues which will be mutually acceptable to both sides in the third round, "he has just said to journalists' questions by Daily News and Analysis .

On the other hand, a company engaged in the field of Offshore Mauritius, Infotech Design Systems Ltd, a subsidiary of the Indian company Aeromatrix is embroiled in a major scandal of bribes, kickbacks in the purchase of 12 helicopters for the Indian Army. Since the outbreak of this case, the Indian government has taken the decision to cancel the transaction and just yesterday, the Central Bureau of Investigation of India has initiated procedures for Bribery charges against 12 individuals, including the former chief of the Indian Air Force, currently retired, and also through the Christian name Michael, and six companies, including Design Systems Infotech Ltd Mauritius.

The amount of bribes bribes amounting to 400,000 euros or Rs 1.6 million, depending on the version of the facts recorded by the Italian company Finmecannica, who had won the contract in 2005. The survey of the Central Bureau of Investigation maintains that Infotech Design Systems Ltd of Mauritius and another Indian company, established in Tunisia, were used for the transfer of funds to the beneficiaries of the network of fraud and corruption.

To justify these remittances, these companies in Mauritius and India had issued receipts on sessions Consultancy fictitious. The Italian company that won the contract, which was terminated for, cooperate with Indian authorities as suspects reject the allegations against them.