Measures to curb graft, seize black money in place

Black money is one of the serious scourges facing India, which is acting as a stumbling block to unsure inclusive growth and development of the country. It is the root cause of growing inequality and deprivation. Black money refers to funds earned through shadow activities (income generated through  illegal means), on which income and other taxes has not been paid.  In common parlance the term is   used to refer to money that is not legitimately earned and possessed by the individuals or households. This could be primarily for two possible reasons: 1) the money may have been generated through illegitimate activities not permissible under the law, like corruption, smuggling, mis-invoicing (under-invoicing and over-invoicing counterfeiting,  illegal mining and quarrying, profiteering, capitation fees, prostitution, crime, drug trade, terrorism, all of which are  liable to be punished under the legal framework of the state; and 2) income and wealth generated and accumulated by failing to pay the dues to the public exchequer in one form or other.  In the latter case the activities undertaken by the perpetrator could be legitimate and otherwise permissible under the law of the land but s/he has failed to account the income so generated, comply with the tax requirements, or pay the dues to the public exchequer, leading to the generation accumulation wealth may have been generated and accumulated by failing to pay the dues to the public exchequer in one form or other. Part of the black money, which is generated by small perpetrators, is stashed in the country in the form of cash, gold and silver, in real estate etc.  But a major part of the black money in the hands of big sharks are  such as industrialists, businessmen, bureaucrats politicians, smugglers, drug peddlers, and so on  is stashed in foreign banks situated in various studies on tax havens ,which are typically small countries/ jurisdictions, with low or nil taxation for foreigners who decide to come and settle there. Estimates about black money are largely conjectural.  The estimate of black (unaccounted) money held by Indians, both in India and abroad is estimated to be around $1000 to $ 3000 billion.  The estimated black money stashed abroad by Indians and Indian entities varies between $500 and $1,500 billion. This huge amount has been appropriated from the people of India by exploiting and betraying them. If this huge amount of black money and property comes back to India, the entire foreign debt can be liquidated. And after paying the entire foreign debt, India will have huge resources to invest in development programmes and welfare measures. Dependence on FDI can be substantially reduced. If corruption is controlled, generation of black money can be controlled to a large extent. Of course, for significant dent on corruption and black money there should be change in the mind set of politicians, bureaucrats and the public. 



 D r. C.Murukadas, The Times  of India, Aug. 11, 2012