oppn parties End of "Black Money Bonhomie?"

News Snippets

  • Centre asks states to give shelter and food to migrant workers to stop them from taking to the streets
  • RBI cuts repo rate by 75 bps, the steepest in 10 years
  • Centre writes to states regarding laxity in monitoring people who had arrived from abroad between January and March
  • Kerala reports a spurt in new cases
  • With 124 fresh cases on Friday, the number of reported cases in India stand at 854
  • Five of a family, including a 9-month-old-baby test positive for Covid-19 in Nadia district in West Bengal on Friday
  • The Pakistani army is reportedly forcibly moving all Covid-19 patients to PoK and Gilgit
  • Untimely azaans in J&K mosques spark panic gathering
  • Stocks rise - Sensex up by 1400 points and Nifty goes above the 8600 mark
  • Rahul Gandhi says the economic package is "the first step in the right direction"
  • The government announces wide-ranging measures to help the poor overcome the economic hardship caused by Covid-19
  • G20 leaders to hold a virtual meeting today to explore ways of fighting Covid-19 in a coordinated manner
  • The Delhi government orders testing of all medical staff after the positive test on a Delhi mohalla clinic doctor
  • As a fallout of a Delhi mohalla clinic doctor testing positive for Covid-19, 900 people in the chain quarantined
  • China offers help to India in the fight against Covid-19 and says India will win the battle at an early date
Death toll reaches 27 as Covid-19 cases across India reach 974 on Saturday
oppn parties
End of "Black Money Bonhomie?"

By Yogendra
First publised on 2017-08-13 20:20:15

About the Author

Sunil Garodia Yogendra is undecided whether he wants to be a writer. So he writes to see if he can be a writer. Ha Ha
As the investigative agencies, acting in concert, tighten their net on financial wrongdoers, the “black money bonhomie,” as one unnamed regulatory officer called it, is coming under the scanner. For long have people with good network thrived on commissions from turning the black money of moneybags into “white” using a plethora of mechanisms. When the sums were small, it was managed through “entries” from small taxpayers. But post liberalization, when the sums multiplied, companies (hundreds of them to create a maze) were formed and business boomed.

But the ache din for these set of crooks seem to have changed post demonetization. When notebandi necessitated that cash hoards be deposited in bank accounts for getting new currency, past financial jugglery needed to be reversed in some cases. Also, a new set of crooks arrived on the scene who had cash in hand in their books and could deposit and convert the illicit cash of moneybags. But little did they know that investigative agencies were hot on their trail.

Having identified 331 “shell” companies and ordered action against them, the ministry of corporate affairs has shown that it means business. Regulators are working overtime to untangle the maze and bring the culprits to book. As expected, companies and people involved in businesses such as real estate, commodities, stock trading, plantation and film and television are in the forefront of such financial wrongdoing.

Although one cannot say that this action will wipe out the so-called black money conversion business, it will go a long way in smashing the bonhomie and junking oft-used mechanism. If regulators are on their toes, they can spot new mechanisms when they crop up and nip them in the bud. The need is to bring the unorganized sector that is heavily dependent on cash transactions in the mainstream of the economy so that transactions do not go unreported and taxes are paid. The introduction of GST and concerted action against black money is going to pay rich dividends in this regard.