Black money

Joginder Singh, IPS (Retd)
The Supreme Court has rejected the Central Government’s plea on 26th March, 2014, seeking recall of th e court’s order setting up a Special Investigation Team (SIT) headed by its two former judges to monitor investigations into stashing away of black money in tax havens, and to probe the flight of unaccounted money in foreign banks.
The court also slammed the successive Governments at the centre in the last 65 years for “doing nothing to bring back the black money stashed away in tax havens abroad. It said that , nobody thought of taking back this money. After 65 years, at least a citizen in 2011 came and complained that the economy of the country was getting destroyed on account of black money getting parked in tax havens.
The court said: “There will be a body (SIT) because you have failed. Were you not aware where the black money is deposited? You know it very well.”
“Even if you have taken steps, this court being the highest court and the constitutional court can pass such an order.
The Government has a number of agencies to deal with this problem like The Directorate of the Enforcement Directorate (ED), Directorate Revenue Intelligence (DRI), Directorate (currency), and has the Commissioner of Income Tax (Investigations) or CBI. But they are all wings of the Government and cannot act on their own.
For instance, the CBI, which has to take permission even before starting inquiry against the officers of the level of Joint Secretary and above and the Cabinet has passed a Resolution in 2013, extending this shield to the retired officials of the above ranks.
The politicians think that people are fools and so they make all kinds of promises, which are not only quixotic, but also appalling verging on absurdity. The latest is that the ruling party has decided that if it is voted back to power, it will appoint an special envoy to track black money. What Government has done to the people, whose names were received, except for making them pay taxes on the money. It has already people from Revenue and Intelligence Services posted abroad, in important embassies. It is not that they are not doing any work.
They are passing on the information and if somebody is remiss, in his duty, what action has been taken by the Government.
The Government is talking of the black money stashed abroad. In view of the massive corruption in all pervasive of a portion of bureaucracy and politicians, there is more black money in India, than abroad.
What is the point of wasting time in pleading, cajoling or threatening other countries, to tell India, the names of its citizens and other details holding the unaccounted money abroad, when the source of the money remains our own country.
No property transaction is complete unless a substantial portion of it is paid in the unaccounted form. It knows that but wants to make a show of action
Having taken a Government loan of Rs. 80000 in 1977 and another loan of Rs. 40000 from a IAS/ IPS Cooperative Society, I had built a house in my home Cadre Capital, Bangalore , now called Bangluru. I wanted to sell it before my retirement as I wanted to settle down either in Punjab/ Delhi.
I got an offer of Rs. 1.40 Crores to sell it and I promptly agreed to it.
However, later the purchaser put a condition, that he would Pay Rs. 1Crore in cash and 40 Lakhs in cheque. Without a second thought, I rejected it, saying that I would take everything by cheque and pay all the taxes.
He was surprised at my reply and tried to persuade me to accept the unaccounted money I was very clear, that every penny of tax should be paid to the Government and what I had not done in my life, of touching or what is called the black money, I would not do .
When he insisted, then I had to tell him a Urdu verse; “ Kya Is Umar Hum Khak Mussalman Hoonge” ( I cannot convert at this stage to some other ideology or religion.)
I had to wait for 2 years to sell it to a Nationalised Bank for Rs, 73 Lakhs, half the price and many of my friends and relatives called me “ Almost A Fool”. I paid all the taxes on it.
This is the condition of almost 99% property transaction in the country.
I understand from my acquaintances in the real estate, that the same story continues even, though names, dates and places may have changed.
First priority , for the Government of the day, is to create an atmosphere ,in the country, where there is no need to bribe for getting your rightful work done. But unfortunately, it has been business as usual. No Government realises, that every single law passed, in addition to the thousands of other laws, creates a bottle neck and adds one more inspector.
Most of the black money is with 90% dishonest bureaucrats, on whom there is no check. Even after 4 years, the Government has not dismissed an All India Service Couple, who were found in possession of hundreds of Crores of Property and cash.
Corruption in India is a major issue that adversely affects its economy. In 2012 India has ranked 94th out of 176 countries in Transparency International’s Corruption Perception Index The largest sources of corruption in India are entitlement programmes and social spending schemes enacted by the Indian Government.
Examples include naming a scheme after the most upright man of India, ( Mahatma Gandhi National Rural Employment Guarantee Scheme and National Rural Health Mission and Direct Transfer of cash.
At the cost of repetition, it is once again emphasised, that the causes s of corruption in India include excessive regulations, complicated taxes and licensing systems, numerous Government departments each with opaque bureaucracy and discretionary powers, monopoly by Government controlled institutions on certain goods and services delivery, and the lack of transparent laws and processes.
The only solution Government has, for solving the problem of black money and corruption is to appoint committees, Commissions or Regulators to deal with the problem and then forget the problem. Thanks to the prodding of the Apex Courts, the Government gives impression of tackling a given problem. It is forgotten till the next date of hearing. The Government must remember that Democracy, good governance and modernity cannot be imported or imposed from outside a country.

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