Monday, December 12, 2011

What is Black Money

Black Money in India, in Indian banks and invested in real estate sector is many many times greater than total of black money parked in various foreign banks including that in Swiss Bank. UPA Government in Delhi has been making various lame excuses for its failure in declaration of black money held in foreign banks as National assets. But do they fail to stop game of black money in India itself.

It may be difficult for the government to force foreign banks to declare details of account holders. But I am unable to understand why government in not interested to strengthen control mechanism on financial transactions to stop continuous escalation in black money racket in India and why government fails to unearth black money from Indian market and why does it fail to punish real perpetrators of black money.

Government is adamant not to accept strong Jan Lokpal Bill proposed by Civil Society team led by Anna Hazare. Government has threatened to take action against Anna Hazare and his team if they start fast unto death from 16th of July as proposed by Anna to force government to accept their draft for Lokpal. Mr. Digvijay Singh veteran spokesman of Congress Party has already threatened to take action against Anna in the same way as Delhi Government they did against Ramdeo Baba on June 4 at Ramlila Ground Delhi.

I am unable to understand why the government is bent upon teaching a lesson to those who are selfless leaders, who are fighting against corruption, who have raised voice against corrupt system, who want nothing but change in the system and who are well wishers of the country.

Why government is not teaching lessons to Naxalites and Maoists who are indulged in killing of innocent people in various naxal affected belts in India and who are engaged in forceful extortion of money from businessmen, servicemen, police officials, politicians, administrative officers and contractors and all affluent persons of the society.

Why government is not interested to teach lessons to those corrupt officers and corrupt politicians who are looting the country .Why does government want to provide shield to corrupt politicians including Ministers, MPs, MLAs, corrupt judges and corrupt officers. Why the government is not interested to pursue cases of high value scams which are being investigated by CBI and other agencies at the instance of Supreme Court and High courts.

Why is government showing its indifference on relentless price rise and not punishing black marketers, hoarders and smugglers who are charging abnormal profits on their products and services.

Why is government silent on large scale use of black money in educational institutes, real estate sector, hospitals, hotels, public rallies, and welcome parties organized by flatterers in various offices etc .

Why government is hesitant to arrest top ranked bankers, doctors, engineers, IAS officials, IT officials, CAs, Advocates, custom officials and various brokers in share market who are indulged in corrupt practices.

Since the leaders of Congress Party are in power, they cannot be allowed to threaten well wishers of the country .If government is of good intention they can exhibit the same by taking action against top ranked corrupt officers and corrupt ministers by using existing laws and rules. People do not like that low level junior babus and officers be made scapegoat for evil works done at the instance of top ranked officers and minister.

If they fail to act effectively against looters of the country and continue to cheat people of India on some ground or the other and go on punishing innocent people fighting against corruption, I hope voters of India will ultimately punish the current ruling party.

Of course the present government can misuse the power for a few years in want of disunity of opposition parties, but not for a longer period. Late Indira Gandhi after her defeat in election petition at Allahabad High Court had imposed emergency in the country and arrested all prominent leaders of opposition parties. But her reign of injustice could not last long. People voted her out due to emergency excesses and Janta Party came to power. History is going to be repeated as it appears to common men.

Since the movement launched by Ramdeo Baba and Anna Hazare is peaceful movement and not violent movement as launched by Telangana fighters or Gujjar fighters, government is contemplating of stern action. If the movement becomes widespread and violent, the situation will go beyond the control of the government and its leaders will fail to continue their dirty politics as they usually do against their opponents.

I however take an opportunity to submit my views on black money and like to submit hereunder a few suggestions to control the same. Government should make efforts to reduce creation of black money in following ways.

First and foremost and very simple solution to the problem of black money is minimizing cash transaction. As per company rules all payment above value of Rs.20000 should be through cheque but still companies are making purchases in cash .On this point Ramdeo Baba has rightly pointed out that notes of Rs.500 and Rs.1000 should be demoetised.Even Rs100 note should be demonetized. Politicians always talk of poor farmers, small traders and middle class families to continue circulation of high value notes and to their earning through evil means. More than 90 percent of population of India does not earn 100 rupees a day; more than 50 % of population does not earn even Rs.20 a day. As such they will not face any problem. In developed countries like USA, 99 percent of sale and purchase take place through cards or bank cheques and after giving acceptable identity only. In India 90 percent of sale and purchase takes place in cash. Government should try honestly to remove all constraints coming in way and ensure that more than 90% of such transactions take place through cheque.

Most of traders and manufacturers and government officers are perhaps aware that only in Delhi purchases by traders takes place in hundreds of crores of rupees in cash, or by Rs.9000 demand draft ( less than Rs.20000 DD can be purchased in cash). Draft of value less than Rs.20000 are purchased by traders in every nook and corners of the country and used in Delhi to buy goods and these DDs circulate as hard currency and as black money for six months (period for which DD is valid in banks).If all purchases in Delhi, Surat, Rajkot, Kolkata, Mumbai start taking place in cheque, they seller will start selling on bills and paying tax.

Secondly government should try to bring all incomes generated by servicemen, traders and manufacturers in tax domain. for this purpose they should stop all types of reliefs, concession exemptions. Chartered Accountants and Tax consultants guide Income tax payees how to save tax and how to avoid tax payment. Severe punishment should be given to CAs who is master in converting black money into white money. Tax exemption limit should be upto ten lacs should be permissible so that number of service men are excluded from tax payment and in this way tax authorities will have controllable numbers of assesees to scrutinize. Those IT officials who allow tax evasion by taking bribe should be severely punished in shortest time so that there is demonstrative effect on juniors and babus working in his office.

Thirdly all purchases of house, lands and commercial property should be thoroughly checked by IT officials and where the sale value shown is far less than prevailing market rate, they should be allowed to either cancel the deal or they should purchased the property on behalf of the government and distribute among poor and middle class service men. In Mumbai itself flats worth more than a crore rupees is registered at value Rs, 25 to 50 lacs. Such low valued registration takes place in India every day in good numbers and government is fully aware of it. Most of the netas and officers are purchasing high value properties and it is funny that those who earn black money and use the same for their own interest are supposed to stop creation of black money. Birds of same feather flock together. Officers and politicians save each other, thieves always have good relation among themselves so far as action against them by police is concerned.

Fourth, government should adequate manpower in police and judiciary to ensure that pendency of FIR and court cases in Thana and courts respectively is brought down from 50 millions to 50 thousand and lower .There should be fear of law in the minds of all evil doers. Action should be sever and quickest against those who violate rules. There should be honesty in execution of laws too. Law enforcing agencies if found on wrong path should be severely punished. Officers and politicians who hold top post and commit mistake or indulge in illegal practices should be punished more so that subordinates working under them do not dare to think of taking bribe or illegal money from any citizen.

Fifth root cause of all corruption is dishonesty in recruitment, promotion, posting and transfer of staff working in government offices. Corrupt officers humiliate honest officers and reject them in promotion processes or post them at the most critical places. Due to this fear of humiliation and social denigration, culture of flattery and bribery takes the root in all organization. Property of all top ranked officers and ministers must be checked and those found to be guilty of earning money through bribe either in cash or in kind must be brought to task immediately and severely to demonstrate his subordinates that evil workers are not spared. Such corrupt officers should be removed from the services and those honest officers who have been sidelined should be brought back in mainstream to give a moral boost up those who are devoted workers. For this purpose all officers who have been elevated violating seniority should be given their due award and on the contrary officers who promoted this unhealthy culture should be demoted and posted at critical places.

Expenses on all types of election should be banned. Any Indian citizen who is recognized in an population area of say 10000 should be allowed to contest and do door to door campaigning to prove his caliber and popularity. Each such elected person out of a cluster of say 10000 popular votes should form a body and then they should elect one person for each black and each district. No rally, no pamphlets, no car rally, no processions, no banners, no show business, no temptation, and in brief no expenses either on nomination or on campaigning. Politicians are very clever and it is they who promote black money and it is they who taken huge money from corporate houses, top ranked traders, high profile servicemen, professionals and businessmen to enrich their political fund.

Crores of rupees are spent by all contesting persons in a general election and all these money are nothing but black money. Users of black money cannot allow stopping of creation of black money as long as government do not ban all types of expenses. Politicians always talk of government funding and never talk of reducing expenses. It is these hard core politicians who by dint of their huge money power purchase voters, give them temptations of various types of gifts and strangulate democracy. In fact democracy and secularism are two words which have been used by politicians as tools to befool and loot Indian citizens. These clever politicians divide the voters on caste and communal grounds, backwards and forward ground, poor and rich ground, regional and religious ground and finally win the election to perpetuate their job of looting the nation. They know very well that Indian laws are in their hands and they can manipulate police, judiciary, law enforcing agencies, vigilance agencies and administration by dint of their money power and by dint of their post.

Corrupt practices and use of black money is so much deep rooted that one can say without any doubt that democracy and secularism are meant for corrupt people only. Government is made of corrupt persons, made for corrupt persons and made by corrupt persons.

Government should teach a lesson to Doctors who are earning money through medicine manufacturers and owners of Pathological laboratories. Doctors prescribe costly medicine (antibiotics are available in Rs. 3.00 and Rs.300 also) and doing unwarranted surgical operation to earn illegal money.

Teachers and professors who are not attending schools and colleges but earning huge money through coaching classes .They leak the question papers to earn money and declare a student fail or pass as per his whims and fancies. They charge exorbitant fee for raising marks of a fail student.

CAs should be booked to task who are earning huge unaccounted money from businessmen for tips on tax evasion they provide and IT tax officials support them from behind the scene. It is Chartered Accountants who certify balance sheets of companies, firms and organization even if there is huge concealment of income and creation of black money.

Lawyers should be taught a lesson who in nexus with judges twist the direction of judgement.Judges should be punished who deliver judgement only after taking bribe or go on postponing decision in collusion with advocates.

Politicians who extort huge money from rich people and allow them illegal benefits and undesirable relief should be punished. Politicians spend crores of rupees in politically motivated rallies and for this purpose they forcefully collect money from local inhabitants, forcefully collect vehicles to bring people from villages for attending their rallies. They force businessmen to earn illegal money, apply illegal source to earn money and promote black money.

Bank officials who are sanctioning loans to unscrupulous persons and firms after taking bribe and due to whose bad lending more than one lac crores of banks assets is categorized as Non Performing Assets in the banks, CMD, GMs who are members of Interview panels constituted for various internal promotion processes and who give full marks after taking bribe or gifts should be severely punished. Recruitment, promotions and posting based on flattery and bribery is very common in all offices, not only in banks. In fact this gives rise to corruption in all offices.

Government should restrain and regulate businessmen who are earning abnormal profits on their products and services. They provide.10 to 20 percent profit making seems reasonable but if 100 to 1000 percent profit is earned by businessmen, service providers , there is no power on the earth which can stop price rise.

Government has to stop pilferage in mines, coal, steel, copper etc and punish who are indulged in unaccounted sell of minded goods directly to unscrupulous businessmen. Illegal mining and illegal cutting of forest must be stopped immediately. Government should stop large scale corruption in process of compensation to land owners whose property has been acquired by the government for any project.

Police officials who take lacs of rupees for posting a junior police officer or Hawaldar to desired place should be punished to stop use of black money. Online FIR registration should be allowed even if a few fake complains are submitted by unscrupulous and anti social elements for vested interest or due to business rivalry.

Schools and colleges who provide quality education and higher education charge huge amount of illegal and unaccounted money as donation should be stopped by any hook or by crook.

And so on …………………Government has to ensure rule of law in all its offices. Government has to creat fear of law in the minds of common men , poor and rich without any discrimination based on caste, community , region or religion.

Last but not the least government has to demonstrate their good intention by actions not by making false promises in public rally. Cleaning process should start from top and not from bottom as usually happens. Government has to ensure that officers and babus posted in all its offices work honestly for the country and at the same time all elected representatives like MLA and MP should move in the field to ensure complete, perfect and judicious executions of plans and policies formulated by the government. Now- a- days even MLA and MPs are highly paid government servants and hence supposed to work 12 hours a day as government servants do in other offices and departments. Top ranked officer should not expect red carpet welcome from their juniors and all types of expenses on show business must be stopped forthwith so that flattery culture in employees is transformed into work culture.

Love for the country should be made inevitable and not negotiable on caste or communal ground.

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