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Understanding Black Money: Why Jaitley needs to do more

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By Harshmeet Singh

The awakening of society towards the issue of black money can be credited as much to the media as to the innumerable agitations over the past 5 years.

After a long wait, tough talking Arun Jaitley has finally announced some stringent laws to deal with the offenders of the Foreign Exchange Management Act. According to the proposed law, a rigorous imprisonment of up to 10 years along with a 300% tax penalty will be awarded to those failing to disclose foreign assets.

Apart from proposing severe consequences for the offenders, the FM also stated that the Government was in the process of devising a plan to encourage voluntary disclosure by allowing people to repatriate their black money by paying the appropriate taxes.

Albeit experts and agencies differ in their estimation of the total Black money stashed in foreign banks by the Indian residents, all of them peg the amount to be a significant proportion of our GDP.

black money

How Black Money originates

Contrary to the common belief, Switzerland is fast losing its position as the ‘favourite’ destination for India’s Black money. With all eyes on the Swiss Banks, the depositors are now eyeing safer destinations. A number of individuals have resorted to round tripping to convert their unaccounted money. Round tripping essentially refers to Indian money going abroad by illegal routes, such as Hawala and then coming back to the country in the form of investments or remittances. Tax havens such as Mauritius have attracted huge funds over the past decade, owing to Round Tripping. While it may seem like an easier route to bring back the black money, the evasion of tax at the first instance causes huge losses to the exchequer.

GMR, Reliance Communication also round trip

Surprisingly, a number of listed companies have also come in the net of allegations of round tripping, with SEBI issuing notices to Reliance Communication, GMR and United Spirits.

Circulating money via Villages

Even though the phrases ‘black money’ and ‘stashed abroad’ are usually taken in a single breath, the amount of black money circulating within the borders of the country can’t be underestimated. One of the most common, yet unnoticed ways of circulating black money is through private money lenders in villages. With nationwide financial inclusion still a far off realization, the unbanked villages in India number more than 4 lakh. Lack of credit facilities forces the farmers to take loans from local moneylenders at exorbitant interest rates of 25% – 30%. Such mechanisms provide a fertile base for the black money holders to circulate their illegal or unaccounted cash without raising anyone’s eyebrows.

The Government, by its own admission, is trying its best to bring all the black money holders to the fore. One hopes that probes in matters such as HSBC leak list don’t take the ‘eternal’ path and are fast tracked to keep pace with the big promises made.

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Surajpal Singh Amu: A case of Fatwa by Hindus?

BJP's Surajpal Singh Amu announced a reward roughly equivalent to $1.5 million to anyone who would behead Deepika Padukone and the film director Sanjay Leela Bhansali.

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Padmavati Banner
A man signs a banner during a signature campaign as part of a protest against the release of Bollywood movie "Padmavati" in Kolkata, India, Nov. 22, 2017. VOA

A leader of India’s ruling Bharatiya Janata Party (BJP) has announced that he would pay a reward roughly equivalent to $1.5 million to anyone who would behead an Indian actress and a film director.

Surajpal Singh Amu, a member of the BJP in northern Haryana state, is apparently upset about an upcoming movie, Padmavati, starring actress Deepika Padukone as the 14th-century Hindu queen Padmini.

The movie is directed by Sanjay Leela Bhansali.

Amu alleged that the movie is misleading, not based on truth and offends Hindu sentiments in the country.

FILE - Actress Deepika Padukone and director Sanjay Leela Bhansali attend the opening of the 13th annual Marrakech International Film Festival in Marrakech, Nov. 29, 2013.
FILE – Actress Deepika Padukone and director Sanjay Leela Bhansali attend the opening of the 13th annual Marrakech International Film Festival in Marrakech, Nov. 29, 2013. VOA

“We will reward the ones beheading them, with 10 crore rupees, and also take care of their family’s needs,” Amu said in an interview with India’s Asia’s Premier News (ANI) earlier this week.

Threats against movie

Amu also vowed not to allow the release of the movie and warned movie theaters to avoid playing the movie or risk being torched.

The movie was set to be released during the first week of December.

Rights activists have reacted strongly to the threats and urged the government to take action.

“This is pretty outrageous that you announce publicly and no action takes place at a time when people are being arrested for most trivial reasons in this country,” Gotum Naulakha, an Indian-based civil liberties activist, told VOA.

A security guard walks past a poster of the upcoming Bollywood movie "Padmavati" outside a theater in Mumbai, India, Nov. 21, 2017.
A security guard walks past a poster of the upcoming Bollywood movie “Padmavati” outside a theater in Mumbai, India, Nov. 21, 2017. VOA

An official complaint has been registered against Amu, but many are criticizing the stance of the ruling Bharatiya Janata Party — which controls the central government led by Prime Minister Narendra Modi — on the matter.

“I’ve not heard any official stance from the central government or the Ministry of Information and Broadcasting,” Vinod Sharma, an Indian-based analyst, told VOA.

Anil Jain, a local BJP spokesperson, told ANI that the law applies to everyone in the state of Haryana and no one can threaten others. The central government has yet to react, however.

Bollywood actress Padukone stood her ground and said the movie would be released despite the threats.

“Where have we reached as a nation? We have regressed. The only people we are answerable to is the censor board, and I know and I believe that nothing can stop the release of this film,” Padukone told Indo-Asian News Service (IANS) last week.

Controversy

Padmavati was controversial right from the start. Opponents of the movie stormed the filming of one scene and destroyed the film sets. They were upset that the director of the movie was distorting facts by alleging romance between the Hindu queen and the Muslim invader Alauddin Khilji.

Film director Bhansali, however, denies the allegations and maintains the story is based on a Sufi and medieval-era poem written about the Hindu queen. In the poem, the Hindu queen chooses death before the Muslim conqueror could capture her.

Some experts say the poem is centuries old and there is a possibility the Hindu queen might be purely a fictional character found only in folklore.

“There’s a lot of debate in India whether Padmavati was actually a living being many, many years ago or whether she was just an imagined person in a poem,” analyst Sharma said.

Rights activists maintain that if government fails to draw clear lines around the threat made by the politician, and discourage a growing sense of impunity for some, incidents like this will only increase and threaten the freedom of expression in the world’s biggest democracy.

“By letting loose and giving [a] sense of impunity to the goons of the ruling party or people who’re connected or close to the ruling party, we’re paving the ground for much bigger and [worse] things to happen in the near future,” Naulakha told VOA.

The movie is awaiting approval from India’s Central Board of Film Certification.

Written by Madeeha Anwar of VOA.

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Demonetisation Anniversary: BJP acts cheeky, releases new video showing Frustration of ‘Corrupt’ Politicians following Demonetisation

The one-minute video, which is now going viral on social media, has already been re-tweeted more than 2 thousand times since it was released on November 7, on the eve of demonetization move.

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Demonetisation Anniversary
Screen grab of the sarcastic video released by BJP to mark Demonetisation Anniversary. Twitter

New Delhi, November 8, 2017 : On November 8 2016, every Indian citizen sat glued to their TV screens as Narendra Modi was set to make a big announcement. Outcome? The Indian Prime Minster shocked the entire nation with the introduction of Demonetisation, a move that was to change the very foundation of the cash-dependent Indian economy.

The much-debated move by Modi garnered the attention of several well-versed economists from the country and abroad, alike. While some people willingly welcomed the move, there were others who stood in staunch criticism.

As the move completes its first year, the Bharatiya Janata Party (BJP) is set to observe November 8 as ‘anti-black money day’ to celebrate Demonetisation anniversary in the country.

On the eve of the Demonetisation anniversary, the BJP released a cheeky video claiming to depict how ‘corrupt’ politicians have been criticizing the move, as the nation won following demonetisation.

WATCH BJP’S TONGUE-IN-CHEEK VIDEO

In the video, the BJP attempted to take a dig at corrupt politicians, who have been criticizing PM Modi’s Demonetisation move.

In the video, a woman, playing the character of a frustrated, corrupt politician can be seen going on a rant over PM Modi’s note ban initiative, which was aimed to combat black money, corruption, fake currency and terrorism.

The video ends with a voice-over saying demonetisation has not only brought out this frustration of corrupt citizens, but also black-money, claiming that almost 99 per cent cash which was previously lying hidden with people has now entered the banking system.

The one-minute video, which is now going viral on social media, has already been re-tweeted more than 2 thousand times since it was released on November 7, on the eve of demonetization move.

Ahead of the Demonetisation anniversary, the last few days have witnessed several leaders present their opinions on PM Modi’s demonetization move.

Finance Minister Arun Jaitley called PM Modi’s note ban initiative a ‘watershed moment’ while Piyush Goyal, Minister of Railways believes the move has pushed India towards a more transparent economy.

However, the move is being criticized by ex-Prime Minister Manmohan Singh calling it ‘irresponsible’. The opposition maintains that PM Modi’s note ban initiative has caused reckless damage to the country and the Indian economy.

On Demonetisation anniversary, the BJP is set to observe November 8 as ‘anti-black money day’, while opposition leaders are set to observe the day as ‘black day’ in protest against the note ban initiative.

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Delhi government’s liquor license scam exposed

AAP has turned Delhi into liquor den.

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Delhi government's liquor license scam exposed
Arvind Kejriwaal,Delhi CM.Flickr
 • Illegal liquor licenses granted in shopping malls
 
• Swaraj India protests against illegal vends at Cross River Mall
 
• Illegal vends have turned the mall into a liquor den
 
• Liquor license scam, a perfect example of unholy collusion between AAP & BJP
 
• Arvind Kejriwal, who came to power on the promise of making Delhi addiction free, has today become the Badal of Delhi and Manish Sisodia another Majithia.
New Delhi, Nov 5: Newly formed political party, the Swaraj India has exposed a major scandal in the distribution of liquor licenses by the Delhi government. Party’s Chief National Spokesperson and Delhi State President, Anupam, said that the Delhi government is illegally distributing L10 category liquor licenses enabling dealers to open vends in shopping malls of the city.
The Delhi government offers licenses in the L-10 category to liquor vends in shopping malls of the city. Definition of shops operating from within a mall is clearly stated in the law and the rule mandates that all shops operating from within a mall should be opening up within the building only and cannot have an entrance towards the exterior side of the mall. But Delhi government and the mall management have created these liquor shops against the approved map of the mall. Every week, the Excise officials of Delhi Government are supposed to inspect liquor vends existing in the city, but not a single objection has been raised against these vends that are blatantly violating rules every single day.
And this has resulted in around a dozen liquor vends springing up in just the ground floor of the Cross River Mall. This has turned the shopping mall into a den of liquor vends leaving people living in nearby residential areas helpless. Neither the Delhi government nor the MCD and nor the Delhi police are even taking note of this broad daylight scam. “Is this not a direct sign that all the levels of the government and administration are complicit in letting this illegal trade grow?” Anupam asked.
Everyone in Delhi is well aware of how the employees of MCD don’t lose a moment to demand their share when any construction work begins anywhere. But when illegal constructions are done at such a large scale in a big mall, the MCD doesn’t even blink an eye.
Cross River mall is located in an area from where the Councillor, the MLA as well as the MP are from the BJP. The illegal license is being granted by AAP led Delhi government. It is surprising to see such a harmonious blend between the Aam Aadmi Party and BJP. Promoting liquor trade in Delhi seems to be such a profitable business for both the BJP as well as the AAP that it has brought together the two parties that are otherwise always at loggerheads. Are the black transactions involved in such liquor business the real reason why not a single question has yet been raised by anyone or any party?
Earlier in the last, the Delhi government has eased rules for granting the license to new liquor vends by reducing the minimum carpet area required from 1000 to 500 square feet. And now, in clear dereliction of rules, even vends are being run in the shopping malls.
 On Sunday, Swaraj India’s Mahila Swaraj Morcha protested against the numerous liquor vends in Cross River Mall of Delhi and demanded that the liquor shops be closed down. And in this mall in Shahdara, around a dozen liquor shops have been opened up by granting illegal licenses of the L10 category. And outside this mall, that has been turned into a den of liquor vends, a crowd of drunkards creating an atmosphere of hooliganism has become a daily affair. There has been a continuous increase in crime in the drunken state, where eve-teasing & snatching have become a regular affair.
Sarvesh Verma, President of the party’s Mahila Morcha, said that Arvind Kejriwal who rode to power on the promise of making Delhi an addiction-free city has today become the Badal of Delhi with Sisodia as another Majithia.
Anupam said that though the Delhi government’s anti-women policies will result in the promotion of alcohol addiction but Swaraj India will not let these nefarious plans succeed. The party has earlier as well launched mass agitations against the granting of liquor licenses in residential areas of Delhi, because of which the Delhi government was compelled to announce a ban on the distribution of new licenses. If the government does not immediately order an investigation into the illegal L10 vends and stop this unholy collusion, the Mahila Swaraj Morcha of Swaraj India will take this agitation ahead for the betterment of Delhi.