Mohandas Pai's SOS to PM Modi as GIFT city bars family offices: 'Is this the way to respect honest tax payers…'

In the Thursday post, Mohandas Pai also tagged Union Finance Minister Nirmala Sitharaman. He said that this decision will “harass and deny the honest tax payers.”

Mohandas Pai, former Infosys CFO, has sounded an alarm over the latest regulation that bars local family offices from setting up investment funds in Gujarat International Finance Tec-City (GIFT) located in Gujarat’s Gandhinagar.

In two social media posts, Pai slammed the regulatory decision saying that it would hinder the global investments. Tagging Prime Minister Narendra Modi, Pai said the decision that will lead Family Investment Fund applications on hold, goes against what the Centre aspires to do. He also tagged the PMO requesting Modi to intervene in the issue.

In another post on X, Pai asked, “some regulators think that all Indian citizens are tax evaders and need to be punished. Look at what they are doing. You have said you respect tax payers, is this the way to respect honest tax payers?”

PM @narendramodi Sir,some regulators think that all Indian citizens are tax evaders and need to be punished.look at what they are doing. You have said you respect tax payers,is this the way to respect honest tax payers?harass them,deny them? Pl intervene @RMantri @nsitharaman https://t.co/GzBMBUvO55
Mohandas Pai (@TVMohandasPai) August 22, 2024

In the Thursday post, he also tagged Union Finance Minister Nirmala Sitharaman. He said that this decision will “harass and deny the honest tax payers.”

Pai’s series of posts came after another X user Rajeev Mantri raised concerns. In a long post, Mantri had said that the regulation will impact the access to critical global technologies.

Regulators have recently stop giving approvals to the local family offices to set up investment funds GIFT City. The decision came after concerns regarding capital controls and tax evasion, a Bloomberg report said.

The Bloomberg report further said that FIFs are a potentially important source of business for Gift City since financial hubs across the world, such as Singapore, the Netherlands and London, provide special frameworks for family investments. Experts said that there is growing interest in FIFs as more wealthy Indians are looking to invest overseas, and ironing out the regulatory issues would ensure these wealthy choose Gift City over Singapore or London.