There is no doubt that Indian money is being deposited at foreign bank and this has been continuing since long. Government of India has come out so many times in the past with schemes for voluntary disclosure of black money. It is government who first frame such rules which forces businessman to hide income and hoard black money either in Indian bank in fictitious name or in foreign based Swiss bank. Again it is government who instead of punishing the creator and hoarder of black money gives him an opportunity to get rid of punitive action under Voluntary Disclosure Schemes.
This is why businessmen hide money at foreign bank and always wait for new scheme for Voluntary disclosure and get immunity from legal action. Wrong culture has been inculcated in businessmen by the government only and it is bitter truth and undeniable fact that under such schemes officers and politicians also get an golden opportunity to convert black money ( earned by bribe and unfair means) into white money.
Black money is produced in Indian economy at greater speed than real white money. This black money is also invested in real estate or in Gold or in shares where ample opportunity is still available to conceal the black income. It is due to black money that in India all landed property , apartments, flats, commercial houses, shops or any type of building are traded at two rates , one for black money and one for white money. Flat of value of Rs.30.00 lacs will be sold in Rs. 10.00 lacs as while money and residual Rs. 20.00 lacs as black money for which no receipt is issued by seller of property. Registered deed is constructed for value of Rs.10.00 lac only. As such there is huge black money in Indian economy flowing for years and years without any interruption. Obviously real estate sector is the safest heaven to park black money for officers and traders as well.
After all, black money is the real engine of growth in all sectors. Even politicians will not survive if they do not take black money as donations from businessmen and servicemen .Political workers collect donations from all rich houses without issuing any bill or receipt or you can say without accounting for the same. Political parties account for money only to that extent which is received by cheque from big corporate houses.
It is an open secret that nine out of ten big and attractive houses built in any town or village is built by black money. An honest servicemen or true businessmen abiding all Income Tax rules strictly cannot imagine of having a house worth living. Most of luxurious cars are purchased only by those persons who have illegal income more than legal income.
Government need not therefore go to Swiss bank to verify and demand black money parked there. There is no need to place the matter at G20 meeting to demand disclosure of deposits of Indian parked in Swiss Banks. If there is strong will Government may get the culprit here itself and discover black money at least hundred times of what they suppose to be parked in foreign bank. But who will take such initiative seriously is the million dollar question. When all officers, political workers and all business houses are working in unison and in collusion with each other, none has guts to take strong initiative to stop the unhealthy practice flourishing in India for decades and decades. After all who will bell the cat when all are birds of the same feather?
Political leaders have been firing paper bullets on traders and officers for decades but from the core of their heart they play the same tune which hypnotizes traders and officers for contributing more and more for politicians and political parties. Traders, politicians and officers are made for each other and they cannot break their vicious circle without jeopardizing their survival in their area of operation. It is always the residual 90% of the population which have to suffer due to dominance of black sheep of the economy constituting hardly 10% of the population. Large scale corruption and sky rocketing price of all commodities , goods and services affects adversely the general mass and not at all the affluent class of traders, officers and politicians.
Danendra Jain Agartala
31st March 2009
