Bangalore: Mumbai is considered to be the largest financial capital in India. In the same line, the city has highest number of shareholders who have invested in offshore entities created by Indians, according to Business Standard.
Out of 498 entities from the ‘offshore leaks database’ of International Consortium of Investigative Journalists’ (ICIJ), 184 entities are based in Mumbai. Infact the database has clearly stated that if anyone has an offshore entity it doesn’t mean they can violate any law.
In Mumbai, many investors located in Malabar Hill, Cuffe Parade and Altamount Road. And the investors of British Virgin Islands-based asset management firm are located in the Chawl in Dharavi, Asia’s largest slum.
Delhi comes second on the list after Mumbai. There are about 15 offshore companies in Gurgaon, three in Noida and Faridabad, two in Ghaziabad respectively.
While Kolkata has 39 shareholders making it on the third place, Bangalore has 36 shareholders followed by Chennai with 31 and Hyderabad with14. The study also included small towns where banking services has very limited penetration. The investors and shareholders of the offshore entities may be spread across the country, but they maintain a good business relation with investors in other places and are well connected to each other. For instance, a shareholder who is based in Weekly Bazaar in Hyderabad holds a stake in Malaysian company which is ventured by two people in Ludhiana.
Such connections can also be found in remote centres like Mayurbhanj and Odisha, where investors from these places are connected to investors in Sultanpur, Chennai and New Delhi, who together have interests in a British Virgin Islands-based entity.
According to the ICIJ analysis, the master client for these investments is an export- import company which is based in New Delhi. A master client is an agent or a mediator who helps their client in setting up an offshore entity.
The database compiled by ICIJ will help many users to look for about 1, 00,000 secret companies, trusts and funds which are created in offshore locations. It has also revealed the names behind these secret companies and the trusts created by two offshore services firms Portcullis TrustNet and British Virgin Islands.