Man Who Declared Rs 13,860 Cr as Black Money Held, But What Next?

The strange case of Mahesh Shah and what it could mean for Narendra Modi.

Mahesh Shah, the 67-year-old mystery man who had made a disclosure of whopping Rs. 13,860 crore under the Income Disclosure Scheme (IDS) has been detained by the IT officials.

He made a dramatic appearance on a local Gujarati channel yesteday and claimed that the money he had disclosed does not belong to him.

The amount of Rs 13,860 crore that I declared under IDS was not mine, I will tell the names of those behind it before income tax officials. I made the declaration out of compulsion and to earn commission.

Mahesh Shah, on a Gujarati TV Channel

According to Shah, the money belonged to others including some, "businessmen, politicians and builders" and he would reveal everything before the Income Tax authorities.

He was taken away by the IT officials in the midst of his live TV interview. Shah's appearance and sensational disclosures can trouble the ruling Bhartiya Janata Party in three ways:

1. BJP has been in power for nearly two decades in Gujarat and if the names Shah reveals include individuals connected to or associated with the BJP the taint would cost the party politically.
2. Shah’s disclosure is likely to undermine public confidence in the effectiveness and outcome of Prime Minister's demonetisation move. The government would need to act swiftly and act against people who used Shah to launder their money.
3. Shah’s confession raises questions over the success of IDS. It creates Rs 23,860 crore hole in the tax revenue for the finance minister's tax accounts.

(With inputs from PTI)