The income tax department plans to initiate prosecution proceedings against employees ofHSBC Switzerland for allegedly helping Indians stash away illegal wealth in Swiss banks.

The finance ministry has given permission to the income tax department to initiate action against employees of HSBC, an income tax official said.

"The law empowers I-T authorities to launch prosecution in such cases even if it concerns nationals of other countries," the official said on condition of anonymity.

The official said several account holders who were found to have stashed away funds in Switzerland said the deposits and accounts were solicited by HSBC executives.

He said the account holders have named those executives. India had, a year and a half back, received from the French government a list of 700 Indians who had bank accounts in HSBC Geneva.

In 69 of the cases, the account holders have admitted to unaccounted income of Rs 397.17 crore, on which tax of about Rs 30 crore has already been paid.

The IT department is likely to launch prosecution against the owners of these bank accounts as well after completing its assessment. Simultaneously, the department will take action against HSBC for abetting concealment of income and tax evasion. (Economic Times)