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

There is no truth in Mr. Anand Sharma's statement that allowing FDI in retail will usher in huge benefits and create jobs; will help build the supply chain, cold storages and benefit the farm sector; and will help in efforts to reduce wastage of fruits, vegetables and other products and tame inflation. The truth is that allowing FDI in the sector will hurt small stores, kirana shops and the hawkers and lead to massive job losses. A book by this commentator entitled, 'FDI in Multi-brand Retail Trade: A Retrograde Step' is going to be published within the next fortnight by M/s RAC Publications, Chennai. It is the outcome of deep research. The study concludes: Evidences from various parts of the world indicate that widespread emergence of big format retail super stores have led to extensive ruin of retail stores/shops thereby resulting in the loss of employment and livelihood to millions of persons involved in retail trade.

 Dr.C.Murukadas, Business Line,  Aug 9, 2012

Arrest of "Jeppiaar” in connection with the death of 10
Arrest of "Jeppiaar” in connection with the death of 10 migrant workers on the premises of Jeppiaar Institute of Technology indicates that the Tamilnadu government is letting the law to have its own course. He is one of those responsible for commercialisation engineering education. At present, he owns over a dozen engineering colleges, and many polytechnic colleges and some institutes of Management studies, besides a deemed university. Most of these institutions run by him are built without proper plan permits. He has in fact encroached upon land belonging to government, religious bodies and even the public by using his political clout and started so many institutions. He is also one of those responsible for making AICTE and UGC into corrupt bodies. It is unfortunate that the AICTE has granted permission to this college even before the construction of adequate buildings with sufficient class rooms, labs and other facilities. Corruption is the root cause for AICTE granting the permission. When so many engineering institutions are not able to fill the sanctioned strength, what is the necessity for him to open another ill-equipped college? It is incomprehensible to note that how AICTE grant permission to start so many colleges by one individual/family under one trust or different trusts. Moreover he is running these institutions in an undemocratic manner using muscle power. Most of the students in these institutions are from outside Tamilnadu. He has developed a network of agents all over the country, who are paid substantial amount as commission. But after admission these innocent students are fleeced, intimidated and ill-treated. Money is the only criteria in all his institutions. The government should appoint a committee to review the functioning of these institutions and find out the extent encroachment of public and private land and take suitable action.Dr. C. Murukadas, The Times of India, 11 Aug, 2012

FDI in retail

There is no truth in Mr. Anand Sharma's statement that allowing FDI in retail will usher in huge benefits and create jobs; will help build the supply chain, cold storages and benefit the farm sector; and will help in efforts to reduce wastage of fruits, vegetables and other products and tame inflation. The truth is that allowing FDI in the sector will hurt small stores, kirana shops and the hawkers and lead to massive job losses. A book by this commentator entitled, 'FDI in Multi-brand Retail Trade: A Retrograde Step' is going to be published within the next fortnight by M/s RAC Publications, Chennai. It is the outcome of deep research. The study concludes: Evidences from various parts of the world indicate that widespread emergence of big format retail super stores have led to extensive ruin of retail stores/shops thereby resulting in the loss of employment and livelihood to millions of persons involved in retail trade.

 Dr.C.Murukadas,The Hindu Business Line, Aug 9, 2012

Poor response from states on FDI in multi-brand retail It is not surprising to know that the UPA governments’ efforts to build a consensus on permitting foreign multinational retail giants like Wall-Mart Tesco and others evoked lukewarm response even from among the Congress ruled states and UTs. According to the written reply on August 8, 2012 presented in the Rajya Sabha by Jyotiraditya Scindia, Minister of State for Commerce and Industry, so far only two Congress-ruled states (Delhi and Manipur) and two Union Territories (Union Daman & Diu and Dadra and Nagar Haveli) have responded positively to the central government’s letter sent to all states in June 20112 seeking their support for implementing the decision to allow 51% FDI in the multi-brand retail trade. The two states and two UTs put together constitute only a microscopic minority of 1.67 percent (20. 05 million) of the country’s population. Of course he poor response from even Congress-ruled states should be viewed as severe a setback for the government's efforts to open up the sector. It is obliviously adds strength to the stiff opposition from a spectrum of political parties such as Bharatiya Janatha Party, Communist Parties, AIADMK, Trinamool Congress, Samajwadi Party, Janatha Dal (U) and others to the move to allow foreign retailers such as Wal-Mart, Tesco and others in the lucrative multi-brand retail sector, besides the traders bodies all over the country. There is no truth in Mr. Anand Sharma’s statement that allowing FDI in retail will usher in huge benefits and create jobs; will help build the supply chain, cold storages and benefit the farm sector; and will help in efforts to reduce wastage of fruits, vegetables and other products and tame inflation. The truth is that allowing FDI in the sector will hurt small stores, kirana shops and the hawkers and lead to massive job losses. A book by this commentator entitled, “FDI in Multi-brand Retail Trade: A Retrograde Step,” is going to be published within the next fortnight by M/s RAC Publications, Chennai. It is the outcome of deep research. The study concludes by stating as follows: “Evidences from various parts of the world indicate that widespread emergence of big format retail super stores have lead to extensive ruin of retail stores/shops thereby resulting in the loss of employment and livelihood to millions of persons involved in retail trade. Research findings have exposed that large scale unemployment has proved to be a social dynamite. That is, increase in unemployment leads to a series of social problems, like rise in poverty, alcoholism, domestic violence, indebtedness, suicides and crime in general, leading to a chaotic situation in the society. In sum, the inescapable conclusion is that any disruption of the prevailing system of retail trading will affect all sections of Indian society. FDI in retail trade will not serve any purpose. It will do more harm than benefit the people, especially to the unorganised/informal retail sector."

Dr.C.Murukadas,The Times of India, August 9,2012

Plan panel wants govt to retreat from healthcare

The  Planning Commission’s   proposal   to reverse  the long-standing public health policy ending governments' dominant role in providing health services and transiting to greater privatization of the health sector from the 12th plan onwards in  totally unwarranted and patently dangerous.  It has to be noted that  India, health care system is inadequate and  pathetic. Proper health care and medical facilities are out of reach for a large section of the rural as well as urban poor. Poverty and degraded living environment, and other forms of social disadvantage translate into poorer health status and outcomes for the poor. The general health condition of the urban poor, primarily slum dwellers, is as worse as that of the rural poor. Slum populations, obviously, ‘face greater health hazards due to overcrowding, poor sanitation, lack of access to safe drinking water. A recent study of slums in the million plus cities of Tamil Nadu (Chennai, Coimbatore and Madurai) by FSD (under the guidance of this commentator) found that serious health problem exist in slums everywhere. This study revealed that:  “The information provided by the respondents, 58.6 percent of the households had one or more members suffering from some kind of diseases or other during one month prior to the inv stigation. Malaria, dysentery, diarrhea, asthma, bronchitis, tuberculosis, chicken guinea,dengue, etc. were among the most common diseases that affected them. The incidence of disease was also relatively high in their case and the frequent occurrence of diseases had affected their families. The respondents reported that in case of common illness like cold, fever, dysentery, etc., they did their own treatment or they approached nearby medical practitioners. They stated that they had to depend upon government and corporation hospitals and dispensaries for illness requiring medical attention. However, they were quite unhappy about the cumbersome procedures, long waits and poor medical attention in the government hospitals and corporations dispensaries. Quite a few respondents opined that the general rush in the outpatient departments of the hospitals was so heavy that the doctors found no sufficient time to attend all the patients with due care. The availability of doctors, medicines and chances of treatment were erratic. Seldom are the doctors or medicines available. Moreover, many respondents stated that they had to grease somebody’s palm to get proper treatment.”  Under the circumstances and realities, further withdrawal of the public sector from medical and health services will entail more sufferings to public in general, and poorer  sections in particular.  In fact the public sector accounts for less than 20 % of total healthcare spending in India. Only 1/4 of the Indian population has access to Western (allopathic) medicine, which is practiced mainly in urban areas, where two-thirds of India’s hospitals and health centers are located. Many of the rural poor have to rely on alternative forms of treatment. A widespread lack of health insurance compounds the healthcare challenges that India faces. Although some form of health protection is provided by government and major private employers, the health insurance schemes available to the Indian public are generally basic and inaccessible  the vast majority of people. Therefore, there is strong case for   increasing  India's proportion of public expenditure to total spending on health considerably and  thereby making the public health delivery system more broad based and effective. 

Dr. C.Murukadas, The Times of India, August 8, 2012

Finance Minister’s proposals

Even a cursory  perusal of the proposal of Mr.Chidambaram reveals
 that there   appears to be hidden agenda to  help multinational companies
and  Indian corporates. The proposal to amend tax laws   tantamount to
violation principles of national justice  and facilitate   profit
maximization at the expense of public revenue. None of the measures
suggested  by him will be beneficial to the general public. He has not
said anything about solving the the problems of unemployment, inflation,
 food security. There is no mention about   the likely measures to
reduce fiscal deficit. His  roadmap for reversing last  slide in two
growth  rate does not include measures to invigorate  the  sagging
agricultural sector, particularly in the context of looming drought. 
The neo-liberal package of measures  proposed by  Mr. Chidambaram 
definitely lacks credibility and public support. He must reorient the
proposals so as to bring benefit to the common man rather than the
corporate sector.
Dr.C.Murukadas, The Hindu, Aug 8, 2012