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JPC may seek changes in Mauritius Offshore Business Act

BS Economy Bureau

The Joint Parliamentary Committee, probing the recent multi-crore security scam, may ask for changes in the Mauritius Offshore Business Act (MOBA) to ensure that it is not misused by foreign institutional investors (FIIs) and overseas corporate bodies (OCBs).

Committee chairman SPM Tripathi said, “We have the option of recommending changes if we find that the act or any other related facilities have been grossly misused during the scam period.”

The JPC on Wednesday heard deposition by the Enforcement Directorate led by its chief S S Dawra on the progress made by it in investigating the violations of FEMA and FERA by market participants in the securities scam.

Tripathi, however, said the double taxation avoidance agreement with Mauritius would not be subject to any changes as India has entered into this agreement with over 60 countries with the same conditions.

About MOBA, the chairman said the finance minister of Mauritius had also written to India about its misuse especially by some OCBs. The deposition by the directorate could not be completed on Wendnesday.

In Wednesday's hearing, the ministry of external affairs gave a brief history of the Double taxation avoidance agreement aimed at promoting investments between the 2 countries.

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