Showing posts with label Black money. Show all posts
Showing posts with label Black money. Show all posts

Saturday, July 01, 2017

Miscellaneous

1) Charges were framed against AIADMK (Amma) general secretary V.K.Sasikala on July 1, 2017. The case was filed by the Enforcement Directorate in 2001, that is 16 years ago. Snails move faster.

2) Narendra Modi claims that the 'tough steps' taken against black money by his government have begun yielding results. Proof? He cites the record low balances held by Indians in Swiss banks last year as the proof. Black money is shifted from one place to another and the government claims credit for this! The government has not seized this money.

These news items appeared in The Hindu on the front page today (July 2). Are we really progressing?

Saturday, December 27, 2014

Black Money and Bubbles

RBI Governor, Raghuram Rajan whose name is often mixed up as Raghuraj Raman by Manmohan Singh (Mansingh Mohan?), was recently speaking to a news channel. He expressed his well-known mantra that RBI does not want to flip- flop in administration of interest rates. Therefore, he would rather wait till softened inflation becomes sustainable before deciding to reduce the Repo rate.

This conservative strategy is not necessarily a wise strategy. In the stock exchange, one cannot time the market. Similarly, money market also does not respect timing strategies. However, given RR's standing, very few people would point out that he is without clothes even if he is naked.

He pointed out how RBI was trying to prevent formation of bubbles in real estate. He referred to insistence of a minimum stake of borrower's equity stake in purchase of house. Ceiling for debt amount and floor for equity preempts bubbles.

Usage of black money in purchase of real estate, he said, further bolstered the equity. The Governor is bold enough to accept the almost universal reality of black money in such transactions. This, of course, is not a justification of black money. The government should take some strong measures against black money. Clarion calls from the judiciary alone will not do.


Wednesday, November 05, 2014

Can Modi deliver on black money?

It is very pleasant to hear Narendra Modi's assurance that every black penny deposited abroad will be brought back. Can he make good on his promise?

His Finance Minister whose affiliation to the Delhi Gang is obvious is hesitant even to share whatever details are available with the government. He is not ashamed of parroting the excuse given by the earlier government which he used to make fun of.

Ram Jethmalani who is carrying on a crusade against black money lying abroad was conveniently removed from the BJP. If Modi had desired, Jethmalani could have been brought back to the party. (But why bring back an inconvenience?) The boisterous lawyer is forced to write letters to Modi and Jaitley because they are unlikely to be serious about the matter.

The irrepressible Subramanian Swamy has penned an open letter to Narendrabhai detailing six ways of bringing back black money. If he did not doubt government's intentions, he would not have written an open letter.

Therefore, all indications are that the tax evaders are too powerful and promiscuously present in all political parties to fear. Honest tax payers who are unwilling or too timid to cheat on tax may continue to revel in masochistic pleasure of doing the nation a good turn by coughing up taxes.

Wednesday, October 29, 2014

Black Money kept abroad

The list of Indians who are holding bank accounts  in foreign countries is becoming curiouser by the day. On 28th October, the Supreme Court hollered that the government should give the list to the court positively on 29th. The Finance Minister in a fit of bravado claimed that the government had already handed over the list to SIT which is monitored by the Supreme Court itself. Following questions arise:

1) Why could the court not obtain the list from SIT itself?

2) If the names had already been shared with the SIT, why did the government hesitate to share it with the Court?

Who is fooling whom? When the list was handed over to the court in a sealed cover on 29th October, the court did not even open the cover and chose to hand it over to SIT for necessary action !

Arun Jaitley had claimed that some names in the list would embarrass the Congress party. P.Chidambaram in a show of self-declared righteousness says that he neither asked the officials to show him the list nor was he shown, when he was the Finance Minister. Is this a sign of integrity, abdication or histrionics? Only time will tell.

In the meanwhile, the irrepressible Subramanian Swamy is confident that the Gandhis figure in the list.

Sunday, October 19, 2014

BJP's volte-face on black money

It is shocking that Modi's government has adopted the UPA's argument regarding divulging details of black money stashed abroad. This amounts to going back on an assurance given to the public on the basis of which NDA came back to power.

BJP, hailed as a party with a difference, is only a carbon copy of the Congress party. As time rolls on, we are likely to witness scams and scandals reminiscent of UPA days. The Modi magic also has a shelf-life.

Modi's decision to continue the ailing Arun Jaitley as the cabinet minister in charge of two crucial ministries is not reflective of good governance. This is not to underestimate Jaitley's capacity or credibility both of which are high. Even a healthy person will find the combined demands of two crucial ministries to be taxing. Modi seems to be trading off principled politics for pragmatic economics. He was not voted to power for making this dubious choice.

Saturday, April 26, 2014

Half-hearted moves on black money

Government of India belatedly wrote to Swiss government seeking details of accounts maintained by Indians in Swiss banks. P.Chidambaram gave maximum publicity to this development with a view to creating a false image that our government is keen on nailing black money. This was a tactical ploy to defend the government against the findings of the Supreme Court that the government was guilty of contempt of court since it did not follow the court instructions given as early as 2011.

In all fairness, Chidambaram should release the letter containing the Swiss government's response. Instead he is only releasing some innocuous contents from the response and keeping the country in the dark about a crucial issue. GOI is following a consistent policy of protecting the owners of black money.

Wednesday, April 23, 2014

Supreme Court on black money

Supreme Court has made caustic comments on the government's disregard for the former's judgment delivered in July, 2011 for appointment of a Special Investigation Team and for taking steps against black money.

Seriousness of these comments is explicit from the following report:

"Centre faces ire of Supreme Court on blackmoney
22 Apr 2014, 2046 hrs IST, AGENCIES
The Centre on Tuesday (April 22) faced the ire of the Supreme Court for failing to implement its three-year-old directions including setting up of a SIT to probe all cases of black money and disclosing information received from Germany about individuals stashing money in Liechtenstein Bank. "It is totally contempt of our directions," a bench headed by Justice H L Dattu said while disapproving the contention of Solicitor General(SG) Mohan Parasaran that all the directions in July 4, 2011 judgement were inter-connected and disclosure of names received from Germany was to be done after the investigation by the Special Investigation Team (SIT).

"In our view the judgement has to be read disjunctively and not conjectively," the bench, also comprising justices Ranjana Prakash Desai and Madan B Lokur, said. "We have to take the statement of Solicitor General with a pinch of salt," it said and added that "We are not satisfied with the explanation of the SG". Parasaran had submitted that since investigation was being done by so many authorities, the Centre was to disclose names against whom show cause notices have been issued after the SIT probe.

Disagreeing with him, the bench said, "This has nothing to do with the SIT. Today we are very clear that you have to give the documents and information received from Germany about the account holders in Liechtenstein Bank. "Secondly, the investigation has to be taken over by the SIT. Thirdly, you have to disclose the names of those against whom show cause notices have been issued," the bench said while referring to its July 4, 2011 directions in which it was stated that the Centre had to "forthwith" comply with its order.

The bench was also surprised that three years after its direction it was informed today that its former judge, Justice B P Jeevan Reddy, who was appointed to head the 13-member SIT, had expressed his inability by a letter dated August 15, 2011 to lead the team which was reiterated by him through another letter of April 18, 2014 addressed to the Joint Secretary, Revenue Department. "How all of a sudden this letter has surfaced. We are surprised that August 15, 2011, letter did not surface in previous occasion," the bench said, referring to both the letters in which Justice Reddy only expressed his willingness to provide guidance and directions to the SIT.

The bench asked both the Centre and petitioners which included eminent jurist Ram Jethmalani to discuss and come out with the name of a former apex court judge who would agree to head the SIT. However, it clarified that the judge should be senior to former apex court judge M B Shah, who has been appointed Vice Chairman of the SIT. "Before constituting the SIT, the court was in touch with Justice Jeevan Reddy. Now both of you in consultation can come out with a common name so that it does not create any ripples and before mentioning the name, have a word with the judge. We don't want to suggest name of any judge," the bench said.

While posting the matter on April 29, the bench asked the Solicitor General to take proper instruction from the Revenue Secretary and also respond "What prevented them (Centre) to comply with the directions." Parasaran said he will come back at the next hearing after checking from Finance Ministry on what information can be shared by the Centre as per its agreement with respective countries on the information received on the issue of black money.

When the bench told the SG it was hearing the application filed by Jethmalani and others that the Centre has not complied with the order of disclosing the names of the account holders in Liechtenstein Bank, he said it can't be done unless the SIT is constituted. While the bench disagreed with him, senior advocate Anil Divan, appearing for Jethmalani said, "The direction is that the Union of India will forthwith give information, documents and materials received from Germany".

"If no stay is granted, the order has to be implemented. There is no stay of July 4, 2011 directions," he argued. Concurring with his arguments, the bench said, "You (Centre) are directed by the court to disclose names, materials received from Germany to petitioners and SIT will take over and carry out further investigation." The bench said the Centre's prayers are disjuncted and there were positive directions in July 4, 2011 judgement which stated "forthwith" and it does not mean that the information has to be disclosed after the SIT probe.

Further, the bench said earlier there was a review petition against the July 4, 2011 judgement which was dismissed and under its garb, the Centre avoided implementing its directions. The Supreme Court on March 26 had rejected the Centre's plea to recall its order for SIT to probe all cases of black money, saying it stepped in as for over six decades "the government failed to bring back the money stashed in foreign banks to the country".

Jethmalani had filed an application seeking directions to the government "to file list of names of those having accounts in Liechtenstein Bank with respect of whom investigations have been concluded, either partially or wholly, and show cause notices issued and proceedings initiated". He alleged that after July 4, 2011 judgement, “No steps have been taken by the respondents (Centre and its ministry concerned) in compliance with the directions of the apex court". "The respondents have brazenly and willfully flouted the directions of this court," he said."

Government's shameless efforts to protect the owners of black money are appalling.