oppn parties End of "Black Money Bonhomie?"

News Snippets

  • Maratha quota bill likely to be tabled in Maharashtra assembly today
  • Arvind Kejriwal skips ED summons for the 6th time, says the case is in court and will follow court's decision
  • PM Modi says UP has gone from 'red tape' to 'red carpet' in 7 years of 'double engine' government
  • Farm unions reject government offers, to resume Delhi march from today
  • Centre says some Aadhar cards in Bengal 'deactivated' due to technical glitz, will be activated back soon
  • Supreme Court stays LS privilege panel summons to Bengal officials over BJP MP Sukanta Majumdar injury case
  • Supreme Court junks Sandeshkhali petition, says it cannot be compared to Manipur, asks petitioner to approach Calcutta HC
  • Supreme Court gets tough on Chandigarh mayoral elections, asks for ballot papers and video footage, does not order re-election
  • Government starts withdrawing old small tax demands, up to Rs 25000 per entry till FY 2009-10 and up to Rs 10000 per entry from FY 2010-11 to FY 2014-15 with an overall ceiling of Rs 1 lakh per tax payer
  • Stocks remained positive on Monday: Sensex gained 281 points to 72708 and Nifty 81 points to 22122
  • Jasprit Bumrah likely to be rested for 4th Test while K L Rahul may be back
  • FIH Pro League hockey: India beat Spain 8-7 in shootout
  • SP leader Salim Sherwani, miffed at no Muslim candidate given RS ticket, quits party
  • Army going for big (Rs 57000cr) upgrade in combat vehicles to replace T-72 tanks
  • Mamata Banerjee says the BJP is doing nothing to resolve the Sandeshkhali dispute but instead fanning the fires to escalate it
History created in Supreme Court as Chandigarh mayoral poll ballots counted in court, judges declare AAP candidate Kuldeep Kumar winner after taking into account the votes defaced by returning officer Anil Masih
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 freelance writer
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.