When Prime Minister Narendra Modi banned high-denomination currency bills in a surprise move late last year, authorities noticed a surge in shell companies depositing cash in banks, seemingly in a bid to hide who owned that wealth.

The moment, said a top aide to Modi, was an eye-opener for the government, which had not realized just how much shell companies were being used to hide assets and launder money.

Modi&#39;s office has formed a team of top law enforcement and revenue officials to go after such companies.

Last month, the authorities ordered nearly 200,000 shell companies to be shut down, and the aide said the government is examining hundreds of thousands more.

The systematic crackdown on shell companies - which have no active business operations or assets - is perhaps one of the most tangible outcomes of demonetization, which aimed to hit tax evasion and move India toward cashless, digital transactions that leave a paper trail.

&quot;We are very much at war against black money. The impact of this (crackdown) will be huge on shell companies,&quot; said the aide, who cannot be named in line with government rules.

In his Independence Day address on Tuesday, Modi claimed credit for going after these companies, and warned that &quot;looters of the nation&#39;s wealth will have to answer.&quot;

Modi took office in 2014, vowing to fight corruption and bring back billions of dollars stashed away overseas as well as in real estate, stock markets and front companies through a web of fictitious names.

While the move to withdraw 85 per cent of bank notes shook the economy and was widely criticised, the fight against unaccounted wealth carries overwhelming support from ordinary Indians who often have to pay bribes for government services.

A high-level task force leading the investigation has found hundreds of shell companies are registered in a few buildings in Kolkata.

More than 400 companies listed their address in a dimly-lit colonial-era building at 9/12 Lalbazar Street.

In its warren of offices were firms offering services such as earthmoving equipment, infrastructure financing, information technology consultants and many others which had office space the size of cubicles.

Many were locked, with their padlocks coated in dust. Others were grimy residential quarters with laundry hanging from the windows.

Data separately provided by Tofler, a company information database service, identified nearly 3,000 companies in two offices in the building. Some were named after flowers.

A tax inspector said the Kolkata firms were a virtual money laundering industry and drew a parallel to the Panama legal firm Mossack Fonseca that emerged from obscurity last year after the leak of millions of documents from its offices that illustrated how the wealthy use offshore corporations to avoid taxes.

&quot;The Kolkata industry does the work of obfuscating money trails. Kolkata companies are a huge network that take your money from one end and bring it out the other,&quot; said the inspector, who didn&#39;t want to be identified as he&#39;s not authorised to talk to the media.

The shell companies support much of the fraud and embezzlement in India, tax authorities say.

The owners of these companies create elaborate smokescreens, including naming personal servants and chauffeurs as board directors, the tax inspector said, adding they are used to obscure the ultimate beneficiaries, conceal political investment, route money to evade tax, commit fraud or manipulate tenders.

Last week, the Securities Exchange Board of India imposed trading restrictions on 162 listed entities as shell companies as part of its broader crackdown on illegal offshore transfers and tax evasion.

Several firms identified in the list of front companies have challenged the decision, saying they were engaged in legitimate business.

The Serious Fraud Investigation Office is creating a database of shell companies, and has so far identified 114,269 as front firms.

The database contains details of those involved in the shell company &#39;eco-system&#39;, from those who set up the companies to the beneficiaries of laundered money and the professional mediators who bring the operators and beneficiaries together, the government note said.

More than 370 front companies were listed at 23A Netaji Subhash Road, another site in Kolkata, according to the note.

Sujit Kumar Mukherjee, the secretary of the 23A Tenants&rsquo; Association, said he was not in a position to say if there were front firms operating from the building.

&quot;It is very difficult to say who is doing what behind the front door,&quot; he said.

Last month, authorities ordered nearly 200,000 shell companies to be shut down

When Prime Minister Narendra Modi banned high-denomination currency bills in a surprise move late last year, authorities noticed a surge in shell companies depositing cash in banks, seemingly in a bid to hide who owned that wealth. The moment, said a top aide to Modi, was an eye-opener for the government, which had not realized just how much shell companies were being used to hide assets and launder money. Modi's office has formed a team of top law enforcement and revenue officials to go after such companies. Last month, the authorities ordered nearly 200,000 shell companies to be shut down, and the aide said the government is examining hundreds of thousands more. The systematic crackdown on shell companies - which have no active business operations or assets - is perhaps one of the most tangible outcomes of demonetization, which aimed to hit tax evasion and move India toward cashless, digital transactions that leave a paper trail. "We are very much at war against black money. The impact of this (crackdown) will be huge on shell companies," said the aide, who cannot be named in line with government rules. In his Independence Day address on Tuesday, Modi claimed credit for going after these companies, and warned that "looters of the nation's wealth will have to answer." Modi took office in 2014, vowing to fight corruption and bring back billions of dollars stashed away overseas as well as in real estate, stock markets and front companies through a web of fictitious names. While the move to withdraw 85 per cent of bank notes shook the economy and was widely criticised, the fight against unaccounted wealth carries overwhelming support from ordinary Indians who often have to pay bribes for government services. A high-level task force leading the investigation has found hundreds of shell companies are registered in a few buildings in Kolkata. More than 400 companies listed their address in a dimly-lit colonial-era building at 9/12 Lalbazar Street. In its warren of offices were firms offering services such as earthmoving equipment, infrastructure financing, information technology consultants and many others which had office space the size of cubicles. Many were locked, with their padlocks coated in dust. Others were grimy residential quarters with laundry hanging from the windows. Data separately provided by Tofler, a company information database service, identified nearly 3,000 companies in two offices in the building. Some were named after flowers. A tax inspector said the Kolkata firms were a virtual money laundering industry and drew a parallel to the Panama legal firm Mossack Fonseca that emerged from obscurity last year after the leak of millions of documents from its offices that illustrated how the wealthy use offshore corporations to avoid taxes. "The Kolkata industry does the work of obfuscating money trails. Kolkata companies are a huge network that take your money from one end and bring it out the other," said the inspector, who didn't want to be identified as he's not authorised to talk to the media. The shell companies support much of the fraud and embezzlement in India, tax authorities say. The owners of these companies create elaborate smokescreens, including naming personal servants and chauffeurs as board directors, the tax inspector said, adding they are used to obscure the ultimate beneficiaries, conceal political investment, route money to evade tax, commit fraud or manipulate tenders. Last week, the Securities Exchange Board of India imposed trading restrictions on 162 listed entities as shell companies as part of its broader crackdown on illegal offshore transfers and tax evasion. Several firms identified in the list of front companies have challenged the decision, saying they were engaged in legitimate business. The Serious Fraud Investigation Office is creating a database of shell companies, and has so far identified 114,269 as front firms. The database contains details of those involved in the shell company 'eco-system', from those who set up the companies to the beneficiaries of laundered money and the professional mediators who bring the operators and beneficiaries together, the government note said. More than 370 front companies were listed at 23A Netaji Subhash Road, another site in Kolkata, according to the note. Sujit Kumar Mukherjee, the secretary of the 23A Tenants’ Association, said he was not in a position to say if there were front firms operating from the building. "It is very difficult to say who is doing what behind the front door," he said.

Cracking down on 'black' money, India steps up scrutiny of shell firms

When Prime Minister Narendra Modi banned high-denomination currency bills in a surprise move late last year, authorities noticed a surge in shell companies depositing cash in banks, seemingly in a bid to hide who owned that wealth.

The moment, said a top aide to Modi, was an eye-opener for the government, which had not realized just how much shell companies were being used to hide assets and launder money.

Modi&#39;s office has formed a team of top law enforcement and revenue officials to go after such companies, according to the aide and a government memo reviewed by Reuters.

Last month, the authorities ordered nearly 200,000 shell companies to be shut down, and the aide said the government is examining hundreds of thousands more.

The systematic crackdown on shell companies - which have no active business operations or assets - is perhaps one of the most tangible outcomes of demonetization, which aimed to hit tax evasion and move India toward cashless, digital transactions that leave a paper trail.

&quot;We are very much at war against black money. The impact of this (crackdown) will be huge on shell companies,&quot; the aide, who cannot be named in line with government rules, told Reuters.

In his Independence Day address on Tuesday, Modi claimed credit for going after these companies, and warned that &quot;looters of the nation&#39;s wealth will have to answer.&quot;

Modi took office in 2014, vowing to fight corruption and bring back billions of dollars stashed away overseas as well as in real estate, stock markets and front companies through a web of fictitious names.

While the move to withdraw 85 percent of bank notes shook the economy and was widely criticised, the fight against unaccounted wealth carries overwhelming support from ordinary Indians who often have to pay bribes for government services.

LALBAZAR STREET, KOLKATA

A high-level task force leading the investigation has found hundreds of shell companies are registered in a few buildings in Kolkata, according to the government note reviewed by Reuters.

More than 400 companies listed their address in a dimly-lit colonial-era building at 9/12 Lalbazar Street.

In its warren of offices were firms offering services such as earthmoving equipment, infrastructure financing, information technology consultants and many others which had office space the size of cubicles.

Many were locked, with their padlocks coated in dust. Others were grimy residential quarters with laundry hanging from the windows.

Data separately provided by Tofler, a company information database service, identified nearly 3,000 companies in two offices in the building. Some were named after flowers.

A tax inspector said the Kolkata firms were a virtual money laundering industry and drew a parallel to the Panama legal firm Mossack Fonseca that emerged from obscurity last year after the leak of millions of documents from its offices that illustrated how the wealthy use offshore corporations to avoid taxes.

&quot;The Kolkata industry does the work of obfuscating money trails. Kolkata companies are a huge network that take your money from one end and bring it out the other,&quot; said the inspector, who didn&#39;t want to be identified as he&#39;s not authorised to talk to the media.

FRAUD AND EMBEZZLEMENT

The shell companies support much of the fraud and embezzlement in India, tax authorities say.

The owners of these companies create elaborate smokescreens, including naming personal servants and chauffeurs as board directors, the tax inspector said, adding they are used to obscure the ultimate beneficiaries, conceal political investment, route money to evade tax, commit fraud or manipulate tenders.

Last week, the Securities Exchange Board of India imposed trading restrictions on 162 listed entities as shell companies as part of its broader crackdown on illegal offshore transfers and tax evasion.

Several firms identified in the list of front companies have challenged the decision, saying they were engaged in legitimate business.

The Serious Fraud Investigation Office is creating a database of shell companies, and has so far identified 114,269 as front firms.

The database contains details of those involved in the shell company &#39;eco-system&#39;, from those who set up the companies to the beneficiaries of laundered money and the professional mediators who bring the operators and beneficiaries together, the government note said.

More than 370 front companies were listed at 23A Netaji Subhash Road, another site in Kolkata, according to the note.

Sujit Kumar Mukherjee, the secretary of the 23A Tenants&rsquo; Association, said he was not in a position to say if there were front firms operating from the building.

&quot;It is very difficult to say who is doing what behind the front door,&quot; he said.

When Prime Minister Narendra Modi banned high-denomination currency bills in a surprise move late last year, authorities noticed a surge in shell companies depositing cash in banks, seemingly in a bid to hide who owned that wealth. The moment, said a top aide to Modi, was an eye-opener for the government, which had not realized just how much shell companies were being used to hide assets and launder money. Modi's office has formed a team of top law enforcement and revenue officials to go after such companies, according to the aide and a government memo reviewed by Reuters. Last month, the authorities ordered nearly 200,000 shell companies to be shut down, and the aide said the government is examining hundreds of thousands more. The systematic crackdown on shell companies - which have no active business operations or assets - is perhaps one of the most tangible outcomes of demonetization, which aimed to hit tax evasion and move India toward cashless, digital transactions that leave a paper trail. "We are very much at war against black money. The impact of this (crackdown) will be huge on shell companies," the aide, who cannot be named in line with government rules, told Reuters. In his Independence Day address on Tuesday, Modi claimed credit for going after these companies, and warned that "looters of the nation's wealth will have to answer." Modi took office in 2014, vowing to fight corruption and bring back billions of dollars stashed away overseas as well as in real estate, stock markets and front companies through a web of fictitious names. While the move to withdraw 85 percent of bank notes shook the economy and was widely criticised, the fight against unaccounted wealth carries overwhelming support from ordinary Indians who often have to pay bribes for government services. LALBAZAR STREET, KOLKATA A high-level task force leading the investigation has found hundreds of shell companies are registered in a few buildings in Kolkata, according to the government note reviewed by Reuters. More than 400 companies listed their address in a dimly-lit colonial-era building at 9/12 Lalbazar Street. In its warren of offices were firms offering services such as earthmoving equipment, infrastructure financing, information technology consultants and many others which had office space the size of cubicles. Many were locked, with their padlocks coated in dust. Others were grimy residential quarters with laundry hanging from the windows. Data separately provided by Tofler, a company information database service, identified nearly 3,000 companies in two offices in the building. Some were named after flowers. A tax inspector said the Kolkata firms were a virtual money laundering industry and drew a parallel to the Panama legal firm Mossack Fonseca that emerged from obscurity last year after the leak of millions of documents from its offices that illustrated how the wealthy use offshore corporations to avoid taxes. "The Kolkata industry does the work of obfuscating money trails. Kolkata companies are a huge network that take your money from one end and bring it out the other," said the inspector, who didn't want to be identified as he's not authorised to talk to the media. FRAUD AND EMBEZZLEMENT The shell companies support much of the fraud and embezzlement in India, tax authorities say. The owners of these companies create elaborate smokescreens, including naming personal servants and chauffeurs as board directors, the tax inspector said, adding they are used to obscure the ultimate beneficiaries, conceal political investment, route money to evade tax, commit fraud or manipulate tenders. Last week, the Securities Exchange Board of India imposed trading restrictions on 162 listed entities as shell companies as part of its broader crackdown on illegal offshore transfers and tax evasion. Several firms identified in the list of front companies have challenged the decision, saying they were engaged in legitimate business. The Serious Fraud Investigation Office is creating a database of shell companies, and has so far identified 114,269 as front firms. The database contains details of those involved in the shell company 'eco-system', from those who set up the companies to the beneficiaries of laundered money and the professional mediators who bring the operators and beneficiaries together, the government note said. More than 370 front companies were listed at 23A Netaji Subhash Road, another site in Kolkata, according to the note. Sujit Kumar Mukherjee, the secretary of the 23A Tenants’ Association, said he was not in a position to say if there were front firms operating from the building. "It is very difficult to say who is doing what behind the front door," he said.

Modi sets up team to go after shell companies

The JD(U)&#39;s Sharad Yadav has said he does not agree Nitish Kumar&#39;s decision to leave the mahagatbandhan&nbsp;-- the JD(U)-RJD-Congress alliance that was ruling the state -- and join hands with the BJP.

&quot;I don&#39;t agree with the decision in Bihar. It&#39;s unfortunate,&quot; he said.

&quot;The mandate by the people was not for this,&quot; he added. &nbsp;

Bihar chief minister Nitish Kumar had unexpectedly &quot;resigned&quot;&nbsp;as chief minister last week, only to be sworn in again as chief minister the following morning; this time with support from the BJP.&nbsp;

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I don&#39;t agree with the decision in Bihar, its unfortunate.The mandate by the people was not for this: Sharad Yadav,JDU <a href="https://t.co/RZDKlpKn2p">pic.twitter.com/RZDKlpKn2p</a>
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/891893392736624640">July 31, 2017</a></blockquote>
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Janta se karar todna sabse badi cheez hai, logon ne mahagatbandhan ko vote diya tha:Sharad Yadav <a href="https://t.co/y5t0iRcvuV">pic.twitter.com/y5t0iRcvuV</a>
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/891926847453188097">July 31, 2017</a></blockquote>
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Sharad Yadav is not interested in Bihar&#39;s politics. He is simply restless: Union Minister Rajiv Pratap Rudy <a href="https://t.co/7LFgK5F9ja">pic.twitter.com/7LFgK5F9ja</a>
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/891927311016120320">July 31, 2017</a></blockquote>
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Yadav earlier hit out at the Centre on Sunday saying that neither had the government been able to get back black money from abroad -- one of Prime Minister Narendra Modi&#39;s poll promises -- nor had anyone named in the Panama Papers been caught.&nbsp;

&quot;Neither black money slashed abroad returned, one of d main slogans of d ruling party nor anyone caught out of those named in Panama papers,&quot; he tweeted on Sunday.&nbsp;

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Neither black money slashed abroad returned, one of d main slogans of d ruling party nor anyone caught out of those named in Panama papers.
&mdash; SHARAD YADAV (@SharadYadavMP) <a href="https://twitter.com/SharadYadavMP/status/891503285147803648">July 30, 2017</a></blockquote>
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Yadav&#39;s barbs came a little after Lalu Prasad spoke with him, appealing to him &quot;to take command of this fight&quot;.&nbsp;

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I talked to Sharad Yadav over phone. I appeal to him that come &amp;go to every corner of country, take command of this fight: Lalu Prasad Yadav <a href="https://t.co/waErUnIKN8">pic.twitter.com/waErUnIKN8</a>
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/891315180436561920">July 29, 2017</a></blockquote>
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The BJP responded to Yadav, with party leader&nbsp;Ashwani Choubey telling ANI, &quot;We admire Sharad Yadav and he has worked with the NDA Government as well. As a fellow politico, I will suggest Yadav to not lose hopes in Prime Minister Narendra Modi as he will bring back the black money from abroad as well as clear the corruption from the entire nation,&quot; BJP leader .

&quot;Now Bihar will flourish under the guidance of our Prime Minister,&quot; he added, saying the BJP had taken an oath to make Bihar corruption-free.

&quot;Sharad Yadav should think for a while before blaming the Prime Minister. Promises made by Prime Minister Modi will get fulfilled,&quot; he said.

'The mandate by the people was not for this,' Yadav added

The JD(U)'s Sharad Yadav has said he does not agree Nitish Kumar's decision to leave the mahagatbandhan -- the JD(U)-RJD-Congress alliance that was ruling the state -- and join hands with the BJP. "I don't agree with the decision in Bihar. It's unfortunate," he said. "The mandate by the people was not for this," he added. Bihar chief minister Nitish Kumar had unexpectedly "resigned" as chief minister last week, only to be sworn in again as chief minister the following morning; this time with support from the BJP. I don't agree with the decision in Bihar, its unfortunate.The mandate by the people was not for this: Sharad Yadav,JDU pic.twitter.com/RZDKlpKn2p — ANI (@ANI_news) July 31, 2017 × Janta se karar todna sabse badi cheez hai, logon ne mahagatbandhan ko vote diya tha:Sharad Yadav pic.twitter.com/y5t0iRcvuV — ANI (@ANI_news) July 31, 2017 × Sharad Yadav is not interested in Bihar's politics. He is simply restless: Union Minister Rajiv Pratap Rudy pic.twitter.com/7LFgK5F9ja — ANI (@ANI_news) July 31, 2017 × Yadav earlier hit out at the Centre on Sunday saying that neither had the government been able to get back black money from abroad -- one of Prime Minister Narendra Modi's poll promises -- nor had anyone named in the Panama Papers been caught. "Neither black money slashed abroad returned, one of d main slogans of d ruling party nor anyone caught out of those named in Panama papers," he tweeted on Sunday. Neither black money slashed abroad returned, one of d main slogans of d ruling party nor anyone caught out of those named in Panama papers. — SHARAD YADAV (@SharadYadavMP) July 30, 2017 × Yadav's barbs came a little after Lalu Prasad spoke with him, appealing to him "to take command of this fight". I talked to Sharad Yadav over phone. I appeal to him that come &go to every corner of country, take command of this fight: Lalu Prasad Yadav pic.twitter.com/waErUnIKN8 — ANI (@ANI_news) July 29, 2017 × The BJP responded to Yadav, with party leader Ashwani Choubey telling ANI, "We admire Sharad Yadav and he has worked with the NDA Government as well. As a fellow politico, I will suggest Yadav to not lose hopes in Prime Minister Narendra Modi as he will bring back the black money from abroad as well as clear the corruption from the entire nation," BJP leader . "Now Bihar will flourish under the guidance of our Prime Minister," he added, saying the BJP had taken an oath to make Bihar corruption-free. "Sharad Yadav should think for a while before blaming the Prime Minister. Promises made by Prime Minister Modi will get fulfilled," he said.

JD(U)'s Sharad Yadav: 'Don't agree with the decision in Bihar'

Taking the campaign against black money forward, the Prime Minister today urged Indians to support the movement towards digital payment and to use less cash in their daily lives.

&ldquo;My dear countrymen, we must take our fight against black money and corruption to the next level. .... We should contribute towards ensuring reducing the use of cash, of currency notes,&rdquo; the Prime Minister said.

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Fight against <a href="https://twitter.com/hashtag/blackmoney?src=hash">#blackmoney</a>, <a href="https://twitter.com/hashtag/corruption?src=hash">#corruption</a> to continue, says PM <a href="https://twitter.com/narendramodi">@narendramodi</a> in radio address. (File pic) <a href="https://t.co/NGWIjiRmSc">pic.twitter.com/NGWIjiRmSc</a>
&mdash; Press Trust of India (@PTI_News) <a href="https://twitter.com/PTI_News/status/845881076027396096">March 26, 2017</a></blockquote>
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He was addressing the people in his monthly &quot;Mann ki Baat&quot;.

He spoke about building a &quot;New India&quot;, which he said will become possible if all Indians take a pledge and work towards it.

He said that people should pay school fees, buy medicines or items from fair price shops and buy train or air tickets digitally.

&quot;You can&rsquo;t imagine how you can serve the country in this way and become a brave soldier in the fight against black money and corruption,&rdquo; the Prime Minister said.

He expressed his gratitude towards the people and said that over the last few months they have participated in the digital movement, &quot;digidhan&quot;.

Highlighting the fact that the BHIM App, launched to push digital transactions, has already been downloaded by one and half crore people, the Prime Minister said, &quot;There has also been an increase in curiosity about cashless transactions. The poorest of the poor are making attempts to learn, and people are gradually moving towards doing business without cash. There has been a surge in various modes of digital payment after demonetisation.&rdquo; 
&nbsp; 
He also greeted the people of Bangladesh on their independence day and said that India will always stand with the country in maintaining peace, security and development in the region.

(WION with inputs from PTI)

He urged Indians to adopt digital mode of payment in their daily lives as a measure to tackle black money

Taking the campaign against black money forward, the Prime Minister today urged Indians to support the movement towards digital payment and to use less cash in their daily lives. “My dear countrymen, we must take our fight against black money and corruption to the next level. .... We should contribute towards ensuring reducing the use of cash, of currency notes,” the Prime Minister said. Fight against #blackmoney, #corruption to continue, says PM @narendramodi in radio address. (File pic) pic.twitter.com/NGWIjiRmSc — Press Trust of India (@PTI_News) March 26, 2017 × He was addressing the people in his monthly "Mann ki Baat". He spoke about building a "New India", which he said will become possible if all Indians take a pledge and work towards it. He said that people should pay school fees, buy medicines or items from fair price shops and buy train or air tickets digitally. "You can’t imagine how you can serve the country in this way and become a brave soldier in the fight against black money and corruption,” the Prime Minister said. He expressed his gratitude towards the people and said that over the last few months they have participated in the digital movement, "digidhan". Highlighting the fact that the BHIM App, launched to push digital transactions, has already been downloaded by one and half crore people, the Prime Minister said, "There has also been an increase in curiosity about cashless transactions. The poorest of the poor are making attempts to learn, and people are gradually moving towards doing business without cash. There has been a surge in various modes of digital payment after demonetisation.” He also greeted the people of Bangladesh on their independence day and said that India will always stand with the country in maintaining peace, security and development in the region. (WION with inputs from PTI)

Modi emphasises digital transactions in his monthly 'Mann ki Baat'

Despite the Indian government&#39;s pledge to increase transparency,&nbsp;they are&nbsp;aiming to enshrine a law&nbsp;that will make corporate funding to political parties more difficult to track.

Currently, corporations&nbsp;that give money to&nbsp;political parties must publicly&nbsp;divulge who&nbsp;they fund. But the Finance Bill&#39;s proposed change, tabled by the Indian government&nbsp;February during the annual budget session, will no longer require&nbsp;businesses to do so.&nbsp;

The Finance Bill was passed in the Lok Sabha on March 22 amid mass walkouts by opposition parties.&nbsp;

Under the proposed alterations to the Companies Act, political parties in power can more easily&nbsp;leverage the granting of contracts to interested parties. It will also be difficult to prove that an auction has taken place at all, making it possible for the government to award contracts without proving that any competitive process has taken place to earn the job.

The Finance Bill has been assailed by opposition parties as being the outcome of a unilateral process.

Money bill

Another controversial change in the proposed law&nbsp;is&nbsp;the &quot;money bill&quot;. If the new legislation is enacted, the &quot;money bill&quot;&nbsp;will bypass the Upper House, also known as the Rajya Sabha, and will go directly from the Lower House, or the Lok Sabha, to the President of India.

This legislation has been particularly&nbsp;criticised by the opposition for&nbsp;strengthening the ruling Bharatiya Janata Party as its presence isn&#39;t particularly strong in the Rajya Sabha.

But the upside of the mini-sweep has been the government&#39;s decision to roll out electoral bonds. Business houses&nbsp;will be incentivised to make political donations through digital payments and cheques to make the process of donations more transparent.

Aadhar card

The other big change announced on March 22 is the newly increased&nbsp;importance of Aadhar cards, a multipurpose national identity document. On March 22 it was announced that Indian nationals will have to furnish their Aadhar details while filing tax returns after July 1, 2017.

The Aadhar card requires citizens to give the government both their biometric information, or their fingerprints, as well as a retinal scan.&nbsp;

When asked on March 22&nbsp;if the government was making Aardhar cards mandatory--essentially asking, will Indians have to give the government their fingerprints and retinal scans,&nbsp;Finance Minister Arun Jaitley <a href="http://indianexpress.com/article/india/finance-bill-minister-arun-jaitley-counters-critique-yes-we-are-making-aadhaar-mandatory-4581383/" target="_blank">said</a>, &quot;Yes, we are&quot;.

(WION)

If the bill is enshrined, businesses won't have to name the political party they donate to in their profit and loss accounts

Despite the Indian government's pledge to increase transparency, they are aiming to enshrine a law that will make corporate funding to political parties more difficult to track. Currently, corporations that give money to political parties must publicly divulge who they fund. But the Finance Bill's proposed change, tabled by the Indian government February during the annual budget session, will no longer require businesses to do so. The Finance Bill was passed in the Lok Sabha on March 22 amid mass walkouts by opposition parties. Under the proposed alterations to the Companies Act, political parties in power can more easily leverage the granting of contracts to interested parties. It will also be difficult to prove that an auction has taken place at all, making it possible for the government to award contracts without proving that any competitive process has taken place to earn the job. The Finance Bill has been assailed by opposition parties as being the outcome of a unilateral process. Money bill Another controversial change in the proposed law is the "money bill". If the new legislation is enacted, the "money bill" will bypass the Upper House, also known as the Rajya Sabha, and will go directly from the Lower House, or the Lok Sabha, to the President of India. This legislation has been particularly criticised by the opposition for strengthening the ruling Bharatiya Janata Party as its presence isn't particularly strong in the Rajya Sabha. But the upside of the mini-sweep has been the government's decision to roll out electoral bonds. Business houses will be incentivised to make political donations through digital payments and cheques to make the process of donations more transparent. Aadhar card The other big change announced on March 22 is the newly increased importance of Aadhar cards, a multipurpose national identity document. On March 22 it was announced that Indian nationals will have to furnish their Aadhar details while filing tax returns after July 1, 2017. The Aadhar card requires citizens to give the government both their biometric information, or their fingerprints, as well as a retinal scan. When asked on March 22 if the government was making Aardhar cards mandatory--essentially asking, will Indians have to give the government their fingerprints and retinal scans, Finance Minister Arun Jaitley said, "Yes, we are". (WION)

Finance Bill's political funding tenet upends govt's vow to tackle graft

A meeting was held in the Prime Ministers Office which included senior officers of various departments to review the functioning of &lsquo;shell companies&rsquo; (companies which do&nbsp;not conduct any operations and indulge in money laundering) in India, in order to prevent&nbsp;money laundering and tax evasion, especially in the context of unearthing black money post-demonetisation.&nbsp;

There are about 15 lakh registered companies in India and only 6 lakh companies file their annual tax returns, according to the government. This means a large number companies may be indulging in financial irregularities. &nbsp; &nbsp;

In the initial analysis it has been found that &lsquo;shell companies&rsquo; are characterized by nominal paid-up capital, high reserves &amp; surplus on account of receipt of high share premium, investment in unlisted companies, no dividend income, high cash in hand, also private companies as majority shareholders, low turnover &amp; operating income, nominal expenses, nominal statutory payments &amp; stock in trade including minimum fixed asset.

In a small sample analysis of such companies it has been found that Rs.1,238 crore cash has been deposited in these entities during November-December period.&nbsp;

Serious Fraud Investigation Office (SFIO) has filed criminal prosecution for cheating the national exchequer after investigation of entry operators running a group of 49 shell companies and other proprietorship concerns.&nbsp;

It has been found that 559 beneficiaries have laundered money to the extent of Rs.39,00 crore with the help of 54 professionals who have been identified. This information has been shared with SIT, Income Tax Department, Enforcement Directorate, SEBI and The Institute of Chartered Accountants of India (ICAI).&nbsp;

Income Tax Department has re-opened completed assessment in these cases and Enforcement Directorate has initiated action under Prevention of Money Laundering Act (PMLA), 2002. ICAI has also initiated disciplinary proceedings against its members. The winding up process has been initiated in respect of 49 shell companies.

In order to create a credible deterrence a &ldquo;whole government approach&rdquo; will be adopted through coordinated efforts and by leveraging technology.&nbsp;

It has also been decided that appropriate red flag indicators would be used for identifying shell companies, and a database of such companies and their directors would be built by pulling in information from various agencies. The database will also capture Aadhar number of individual directors in the companies.

Harsh punitive actions will be taken against the deviant shell companies which will include freezing of bank accounts, striking off the names of dormant companies and invocation of Benami Transactions (Prohibition) Amendment Act, 2016.

A task force with members from various regulatory ministries and enforcement agencies has been set up under the co-chairmanship of the revenue secretary and corporate affairs secretary to monitor the actions taken against deviant shell companies by various agencies. &nbsp;&nbsp;

The concerned regulatory ministry will ensure that disciplinary actions are initiated against the professionals indulging in malpractices and abetting the entry operators of the shell companies.

(WION)

The government has decided to take harsh action against shell companies which includes freezing bank accounts of these companies

A meeting was held in the Prime Ministers Office which included senior officers of various departments to review the functioning of ‘shell companies’ (companies which do not conduct any operations and indulge in money laundering) in India, in order to prevent money laundering and tax evasion, especially in the context of unearthing black money post-demonetisation. There are about 15 lakh registered companies in India and only 6 lakh companies file their annual tax returns, according to the government. This means a large number companies may be indulging in financial irregularities. In the initial analysis it has been found that ‘shell companies’ are characterized by nominal paid-up capital, high reserves & surplus on account of receipt of high share premium, investment in unlisted companies, no dividend income, high cash in hand, also private companies as majority shareholders, low turnover & operating income, nominal expenses, nominal statutory payments & stock in trade including minimum fixed asset. In a small sample analysis of such companies it has been found that Rs.1,238 crore cash has been deposited in these entities during November-December period. Serious Fraud Investigation Office (SFIO) has filed criminal prosecution for cheating the national exchequer after investigation of entry operators running a group of 49 shell companies and other proprietorship concerns. It has been found that 559 beneficiaries have laundered money to the extent of Rs.39,00 crore with the help of 54 professionals who have been identified. This information has been shared with SIT, Income Tax Department, Enforcement Directorate, SEBI and The Institute of Chartered Accountants of India (ICAI). Income Tax Department has re-opened completed assessment in these cases and Enforcement Directorate has initiated action under Prevention of Money Laundering Act (PMLA), 2002. ICAI has also initiated disciplinary proceedings against its members. The winding up process has been initiated in respect of 49 shell companies. In order to create a credible deterrence a “whole government approach” will be adopted through coordinated efforts and by leveraging technology. It has also been decided that appropriate red flag indicators would be used for identifying shell companies, and a database of such companies and their directors would be built by pulling in information from various agencies. The database will also capture Aadhar number of individual directors in the companies. Harsh punitive actions will be taken against the deviant shell companies which will include freezing of bank accounts, striking off the names of dormant companies and invocation of Benami Transactions (Prohibition) Amendment Act, 2016. A task force with members from various regulatory ministries and enforcement agencies has been set up under the co-chairmanship of the revenue secretary and corporate affairs secretary to monitor the actions taken against deviant shell companies by various agencies. The concerned regulatory ministry will ensure that disciplinary actions are initiated against the professionals indulging in malpractices and abetting the entry operators of the shell companies. (WION)

'Shell companies' under lens post-demonetisation

Despite the lip service paid by political parties to curbing black money in the&nbsp;economy, all political parties continue to show that 70 per cent of the donations they receive are of amounts lower than Rs 20,000. According to the rules, it is not mandatory to furnish the source of donations below Rs 20,000.

As per Association for Democratic Reforms&#39; (ADR) data from 2004 to 2014, all political parties put together received Rs 11,367 crores -- and 70 per cent of that money was received from unknown sources.

The income political parties got from known donors added up to about 16 per cent, or Rs 1,835 crore, of their total income, while income from other known sources including memberships added up to about 14&nbsp;per cent or Rs 1,698 crore.

The most shocking part of the ADR report was that of 51 regional parties, 45 have not submitted donation statements to the Election Commission of India (ECI) for at least one financial year, while 12 regional parties have never filed a donation statement.

The NCP for example, the ADR report says, did not submit a donation report to the Election Commission&nbsp;between 2004-5 and 2006-7.

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An Association for Democratic Reforms report says political parties got Rs 7,832.98 crore from unknown donors between 2004-05 and 2014-15. (DNA)
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Total income of national political parties between 2004 and 2014. (Image source: ADR Report) (Others)
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Sources of income of national parties between 2004 and 2014. (Image source: ADR Report) (Others)
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Total declared income of regional parties. (Image source: ADR Report) (Others)
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Regional parties with maximum declared income. (Image source: ADR Report) (Others)
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As per the ADR&rsquo;s analysis, Congress received 83 per cent of funds from anonymous sources. For Bharatiya Janata Party (BJP) it stood at 65 per cent and for Samajwadi Party (SP) at 94 per cent. The biggest surge was noticed in the war chest of former UP chief minister Mayawati&#39;s Bahujan Samaj Party(BSP). In ten years BSP&rsquo;s war chest surged from Rs 5.9 crores to Rs 111.9 crores, which is a jump of 2057 per cent. BSP also remains the only political party which maintains that it has never received any political funding above&nbsp;20,000 rupees.

The data accessed by ADR also shows that money from anonymous sources also surged in last 10 years. As per the data, the income of national parties from unknown sources increased by 313 per cent and for the regional parties, it increased by 652 per cent. In this category, Dravida Munnetra Kazhagam (DMK) remains the only regional party to have the&nbsp;highest income from known sources which is absent in most of the other regional parties.

As per the data accessed by ADR, Samajwadi Party had the highest income at Rs 819 crores followed by DMK with Rs 203 crores and All India Anna Dravida Munnetra Kazhagam (ADMK) with Rs 165 crores.

Prime Minister Narendra Modi has committed himself to root out black money from the electoral system. A similar position was taken during the UPA regime and the then government of the day also toyed with the idea of state funding of elections but not much happened. For now, BJP has positioned demonetisation as an anti-black money drive but political parties had the exemption to deposit unlimited money in old currency in their bank accounts.

(WION)

The income political parties got from known donors added up to about 16%, the remaining 14% came from known sources like memberships

Despite the lip service paid by political parties to curbing black money in the economy, all political parties continue to show that 70 per cent of the donations they receive are of amounts lower than Rs 20,000. According to the rules, it is not mandatory to furnish the source of donations below Rs 20,000. As per Association for Democratic Reforms' (ADR) data from 2004 to 2014, all political parties put together received Rs 11,367 crores -- and 70 per cent of that money was received from unknown sources. The income political parties got from known donors added up to about 16 per cent, or Rs 1,835 crore, of their total income, while income from other known sources including memberships added up to about 14 per cent or Rs 1,698 crore. The most shocking part of the ADR report was that of 51 regional parties, 45 have not submitted donation statements to the Election Commission of India (ECI) for at least one financial year, while 12 regional parties have never filed a donation statement. The NCP for example, the ADR report says, did not submit a donation report to the Election Commission between 2004-5 and 2006-7. An Association for Democratic Reforms report says political parties got Rs 7,832.98 crore from unknown donors between 2004-05 and 2014-15. (DNA) × Total income of national political parties between 2004 and 2014. (Image source: ADR Report) (Others) × Sources of income of national parties between 2004 and 2014. (Image source: ADR Report) (Others) × Total declared income of regional parties. (Image source: ADR Report) (Others) × Regional parties with maximum declared income. (Image source: ADR Report) (Others) × As per the ADR’s analysis, Congress received 83 per cent of funds from anonymous sources. For Bharatiya Janata Party (BJP) it stood at 65 per cent and for Samajwadi Party (SP) at 94 per cent. The biggest surge was noticed in the war chest of former UP chief minister Mayawati's Bahujan Samaj Party(BSP). In ten years BSP’s war chest surged from Rs 5.9 crores to Rs 111.9 crores, which is a jump of 2057 per cent. BSP also remains the only political party which maintains that it has never received any political funding above 20,000 rupees. The data accessed by ADR also shows that money from anonymous sources also surged in last 10 years. As per the data, the income of national parties from unknown sources increased by 313 per cent and for the regional parties, it increased by 652 per cent. In this category, Dravida Munnetra Kazhagam (DMK) remains the only regional party to have the highest income from known sources which is absent in most of the other regional parties. As per the data accessed by ADR, Samajwadi Party had the highest income at Rs 819 crores followed by DMK with Rs 203 crores and All India Anna Dravida Munnetra Kazhagam (ADMK) with Rs 165 crores. Prime Minister Narendra Modi has committed himself to root out black money from the electoral system. A similar position was taken during the UPA regime and the then government of the day also toyed with the idea of state funding of elections but not much happened. For now, BJP has positioned demonetisation as an anti-black money drive but political parties had the exemption to deposit unlimited money in old currency in their bank accounts. (WION)

Is black money funding elections? Parties got 70% cash from unknown sources

Individuals standing for elections are always finding ways to raise money for running their election campaigns. In India, this money is often used to bribe voters to win elections. Voters are paid in alcohol or bribed in kind by giving blankets, stoves, free talk time. After all this, when an individual wins elections, then one hears that since this politician spent so much money to come to power, he will try to get it all back through corruption. Thus, in the next five years, the politician pillages the system denuding the democracy of every bit of money till he or she reaches the next election cycle.

In all this, democracy suffers. But the challenge is beyond what meets the eye.

System of funding 

If one looks deeper into the system, one realises that the way funding of political parties is taking place, it helps them not to declare the source of funding. A recent report by the National Institute of Public Finance and Policy (NIPFP) funded by the Ministry of Finance, &quot;Study of Unaccounted Income of India&quot;, grimly states&nbsp;the scale of the problem. The report says, &ldquo;Cash donations or coupon sales below Rs 20,000 (about $300) is an open avenue for political parties to introduce any amount into their books of accounts, and also avail exemption from tax with no questions asked. This is an avenue open to serious misuse and the introduction of black money.&rdquo;

A political party while filing its income tax returns need not reveal the source of income for donations below Rs 20,000. Such unknown sources include &quot;sale of coupons&quot;, &quot;Aajiwan Sahayog Nidhi&quot;, &quot;relief fund&quot;, &quot;miscellaneous income&quot;, &quot;voluntary contributions&quot;&nbsp;and &quot;contribution from meetings/morchas&quot;. The details of donors of such voluntary contributions are not available in the public domain.

According to a report by Association of Democratic Reforms, the Analysis of Sources of Funding of National and Regional Parties- FY 2004-05 to 2014-15, the income of national parties from unknown sources increased by 313 per cent, from Rs 274.13 crore during FY 2004-05 to Rs.1130.92 crore during FY 2014-15. The income of regional parties from unknown sources increased by 652 per cent from Rs 37.393 crore during FY 2004-05 to Rs 281.01 crore during FY 2014-15.

It is clear that major political parties are heavily relying on black money through unaccounted political donations. The opaqueness in political funding has the potential to weaken the tenets of democracy. In fact, it has already caused enough damage by undermining the trust of citizens of the country in their politicians and political systems.

Cashless funding of political parties, a must 

One of the ways to be able to bring transparency to the entire issue would be to make political parties go cashless. It means that every penny coming into the political party and going out of the political party should have a digital signature. And after demonetisation, this becomes all the more important. The entire nation went through a move that resulted in massive liquidity crunch in the economy impacting businesses and daily life, with the hope that this would put an end to black economy in the country. A move to becoming cashless may bring back some trust. Is it not something that Prime Minister Narendra Modi can do to show that he holds the political parties to the same level of transparency as he expects from the population that he leads? But holding other people to the same standard to which you hold yourself is no easy task.

(This first appeared in DNA)

Indian political parties filing income tax returns need not reveal the source of income for any donation below Rs 20,000

Individuals standing for elections are always finding ways to raise money for running their election campaigns. In India, this money is often used to bribe voters to win elections. Voters are paid in alcohol or bribed in kind by giving blankets, stoves, free talk time. After all this, when an individual wins elections, then one hears that since this politician spent so much money to come to power, he will try to get it all back through corruption. Thus, in the next five years, the politician pillages the system denuding the democracy of every bit of money till he or she reaches the next election cycle. In all this, democracy suffers. But the challenge is beyond what meets the eye. System of funding If one looks deeper into the system, one realises that the way funding of political parties is taking place, it helps them not to declare the source of funding. A recent report by the National Institute of Public Finance and Policy (NIPFP) funded by the Ministry of Finance, "Study of Unaccounted Income of India", grimly states the scale of the problem. The report says, “Cash donations or coupon sales below Rs 20,000 (about $300) is an open avenue for political parties to introduce any amount into their books of accounts, and also avail exemption from tax with no questions asked. This is an avenue open to serious misuse and the introduction of black money.” A political party while filing its income tax returns need not reveal the source of income for donations below Rs 20,000. Such unknown sources include "sale of coupons", "Aajiwan Sahayog Nidhi", "relief fund", "miscellaneous income", "voluntary contributions" and "contribution from meetings/morchas". The details of donors of such voluntary contributions are not available in the public domain. According to a report by Association of Democratic Reforms, the Analysis of Sources of Funding of National and Regional Parties- FY 2004-05 to 2014-15, the income of national parties from unknown sources increased by 313 per cent, from Rs 274.13 crore during FY 2004-05 to Rs.1130.92 crore during FY 2014-15. The income of regional parties from unknown sources increased by 652 per cent from Rs 37.393 crore during FY 2004-05 to Rs 281.01 crore during FY 2014-15. It is clear that major political parties are heavily relying on black money through unaccounted political donations. The opaqueness in political funding has the potential to weaken the tenets of democracy. In fact, it has already caused enough damage by undermining the trust of citizens of the country in their politicians and political systems. Cashless funding of political parties, a must One of the ways to be able to bring transparency to the entire issue would be to make political parties go cashless. It means that every penny coming into the political party and going out of the political party should have a digital signature. And after demonetisation, this becomes all the more important. The entire nation went through a move that resulted in massive liquidity crunch in the economy impacting businesses and daily life, with the hope that this would put an end to black economy in the country. A move to becoming cashless may bring back some trust. Is it not something that Prime Minister Narendra Modi can do to show that he holds the political parties to the same level of transparency as he expects from the population that he leads? But holding other people to the same standard to which you hold yourself is no easy task. (This first appeared in DNA)

Mr politician, who funds you?

Only hours before Pakistan&#39;s&nbsp;Supreme Court resumed hearing the Panama Papers case on Tuesday, Prime Minister Nawaz Sharif and his daughter Maryam Nawaz handed over evidence documenting the legitimacy of their assets to the top court, reports Dawn.

The documents, totalling&nbsp;about 400 pages, contain the pertinent details of transactions and receipt payments dating back to 2011, Dawn reports.&nbsp;

Nawaz Sharif&#39;s sons Hassan and Hussain Nawaz both did not produce the relevant documents within the time given to them by the court, reports Dawn. Both men live abroad.&nbsp;

Akram Sheikh, who is representing Sharif&#39;s children, opposed forming a commission specifically to probe the Panama Papers case, and pleaded that the court continue hearing the case instead, Dawn reports.

The bench adjourned the hearing until November 17, which is the date&nbsp;they&nbsp;will decided whether or not to form a committee to investigate the Panama Paper case, Dawn reports.

Justice Asid Saeed Khosa had asked the prime minister&#39;s counsel to prove&nbsp;the money was sent abroad by legal means, to which the government requested 15 days to prepare the required documents, Dawn reports. But the court refused, offering them only seven days.

Pakistan Tehreek-i-Insaf (PTI) chief Imran Khan and Awami Muslim League chief&nbsp;Shaikh Rashid have turned in the evidence to support their claims against the premier&#39;s family.

The Panama Papers refers to 11.5 million leaked documents, some dating back to as far as the 1970s,&nbsp;detailing the financial and attorney-client services by the Panamanian law firm,&nbsp;Mossack Fonseca. The International Consortium of International Journalists, in tandem with journalist from media outlets from around the world, inspected the leaks for wrondoing, before turning them over to the public.

The leaked documents illustrate how wealthy&nbsp;individuals and public officials keep their finances hidden. While offshore business entities are legal, reporters found some usages of shell corporations were used to fraud, kleptocracy, tax evasion, evading international sanctions, and other illegal purposes.

Most media dutifully pointed out, being singled out in connection with the&nbsp;Panama Papers is not proof of guilt.

(WION)

<section data-id="552" data-type="adsense">&nbsp;</section>

Pakistan's Prime Minister handed over evidence legitimising assets to Pakistan's top court

Only hours before Pakistan's Supreme Court resumed hearing the Panama Papers case on Tuesday, Prime Minister Nawaz Sharif and his daughter Maryam Nawaz handed over evidence documenting the legitimacy of their assets to the top court, reports Dawn. The documents, totalling about 400 pages, contain the pertinent details of transactions and receipt payments dating back to 2011, Dawn reports. Nawaz Sharif's sons Hassan and Hussain Nawaz both did not produce the relevant documents within the time given to them by the court, reports Dawn. Both men live abroad. Akram Sheikh, who is representing Sharif's children, opposed forming a commission specifically to probe the Panama Papers case, and pleaded that the court continue hearing the case instead, Dawn reports. The bench adjourned the hearing until November 17, which is the date they will decided whether or not to form a committee to investigate the Panama Paper case, Dawn reports. Justice Asid Saeed Khosa had asked the prime minister's counsel to prove the money was sent abroad by legal means, to which the government requested 15 days to prepare the required documents, Dawn reports. But the court refused, offering them only seven days. Pakistan Tehreek-i-Insaf (PTI) chief Imran Khan and Awami Muslim League chief Shaikh Rashid have turned in the evidence to support their claims against the premier's family. The Panama Papers refers to 11.5 million leaked documents, some dating back to as far as the 1970s, detailing the financial and attorney-client services by the Panamanian law firm, Mossack Fonseca. The International Consortium of International Journalists, in tandem with journalist from media outlets from around the world, inspected the leaks for wrondoing, before turning them over to the public. The leaked documents illustrate how wealthy individuals and public officials keep their finances hidden. While offshore business entities are legal, reporters found some usages of shell corporations were used to fraud, kleptocracy, tax evasion, evading international sanctions, and other illegal purposes. Most media dutifully pointed out, being singled out in connection with the Panama Papers is not proof of guilt. (WION)

Pak PM Sharif and his daughter submit asset details in Panama Papers case: Dawn

More than 250 Indian political parties that were unlisted on December 21 for not participating in elections between 2005 and 2015 will have their finances looked into by taxmen.

The Election Commission, a body that administers the election processes in the country, unlisted 255 registered parties, though it doesn&#39;t have powers to deregister a party.

The Election Commission has asked Central Board of Direct Taxes (CBDT) to probe financial malfeasance in the account books of the dormant parties.

The CBDT will take &quot;necessary action&quot; against parties that are found violating Section 29B and 29C&nbsp;of the Representation of the People Act, 1951.

Section 29B states that every political party may accept any amount of contribution voluntarily offered to it by any person or company other than a Government company.

According to section 29C, the treasurer of a political party or any other person authorised by it shall, in each financial year, prepare a report on the contribution in excess of Rs 20,000 received by it from any person in that financial year; and contribution in excess of Rs 20,000 received by it from companies other than Government companies in that financial year.

The action has been taken seemingly to stem flow of black money during elections in the country.

(WION with inputs from PTI)

The Election Commission wants tax officials to pore over the finances of these parties in a bid to stem flow of black money during polls

More than 250 Indian political parties that were unlisted on December 21 for not participating in elections between 2005 and 2015 will have their finances looked into by taxmen. The Election Commission, a body that administers the election processes in the country, unlisted 255 registered parties, though it doesn't have powers to deregister a party. The Election Commission has asked Central Board of Direct Taxes (CBDT) to probe financial malfeasance in the account books of the dormant parties. The CBDT will take "necessary action" against parties that are found violating Section 29B and 29C of the Representation of the People Act, 1951. Section 29B states that every political party may accept any amount of contribution voluntarily offered to it by any person or company other than a Government company. According to section 29C, the treasurer of a political party or any other person authorised by it shall, in each financial year, prepare a report on the contribution in excess of Rs 20,000 received by it from any person in that financial year; and contribution in excess of Rs 20,000 received by it from companies other than Government companies in that financial year. The action has been taken seemingly to stem flow of black money during elections in the country. (WION with inputs from PTI)

More than 250 unlisted political parties under taxman's lens

Former Indian finance minister P Chidambaram slammed the ruling Modi government saying&nbsp;demonetisation was the biggest scam of the year, and that it must be investigated.&nbsp;

&quot;This is the biggest scam of the year and must be investigated. I cannot get Rs 2,000 note, how crores in Rs 2,000 notes found their way to individuals being raided all over the country,&quot; Chidambaram told reporters.&nbsp;

He also questioned the calculations done by the government which made it say one can withdraw Rs 24,000 when banks don&#39;t have enough cash to dispense that amount.

&quot;Every bank says there is no cash. So how does the government say there is cash? This is why Dr Manmohan Singh said monumental mismanagement,&quot; he added.

&quot;Who will compensate the 45 crore people who have been affected due to demonetisation?&quot; he asked.

&quot;I went for a wedding the other day, saw that the rich are not affected. It is the poor who are hurt. Has this stopped corruption, black money? The objective is not being served by this. Only poor people are being punished,&quot; he added.

The Congress leader also said the long-term impact of demonetisation will be negative in terms of GDP figures, adding that the Reserve Bank of India&#39;s projections say so.

&quot;Most economists say 1-2 per cent negative impact. I believe people will not forget for what is being done to them and will certain not forgive the govt for it. Just because people are not protesting in the manner you are suggesting that does not mean that they are condoning what government is doing,&quot; he said.

Meanwhile, the Congress Party alleged Tuesday that the government is avoiding a discussion on demonetisation in Parliament till public anger subsides.&nbsp;

&quot;They want to avoid a discussion in Parliament till the time the anger of the common man melts down. That is why they are trying to delay it,&quot; said Congress leader Mallikarjun Kharge.

&quot;It is not us, but they (the ruling party) who are stopping the debate from taking place. They do not want their mistakes to be counted in Parliament and want to hide their mistakes from the people. That is why they are delaying debate in parliament,&quot; he said.&nbsp;

(This article first appeared in DNA)

He calls it a scam, says it must be investigated

Former Indian finance minister P Chidambaram slammed the ruling Modi government saying demonetisation was the biggest scam of the year, and that it must be investigated. "This is the biggest scam of the year and must be investigated. I cannot get Rs 2,000 note, how crores in Rs 2,000 notes found their way to individuals being raided all over the country," Chidambaram told reporters. He also questioned the calculations done by the government which made it say one can withdraw Rs 24,000 when banks don't have enough cash to dispense that amount. "Every bank says there is no cash. So how does the government say there is cash? This is why Dr Manmohan Singh said monumental mismanagement," he added. "Who will compensate the 45 crore people who have been affected due to demonetisation?" he asked. "I went for a wedding the other day, saw that the rich are not affected. It is the poor who are hurt. Has this stopped corruption, black money? The objective is not being served by this. Only poor people are being punished," he added. The Congress leader also said the long-term impact of demonetisation will be negative in terms of GDP figures, adding that the Reserve Bank of India's projections say so. "Most economists say 1-2 per cent negative impact. I believe people will not forget for what is being done to them and will certain not forgive the govt for it. Just because people are not protesting in the manner you are suggesting that does not mean that they are condoning what government is doing," he said. Meanwhile, the Congress Party alleged Tuesday that the government is avoiding a discussion on demonetisation in Parliament till public anger subsides. "They want to avoid a discussion in Parliament till the time the anger of the common man melts down. That is why they are trying to delay it," said Congress leader Mallikarjun Kharge. "It is not us, but they (the ruling party) who are stopping the debate from taking place. They do not want their mistakes to be counted in Parliament and want to hide their mistakes from the people. That is why they are delaying debate in parliament," he said. (This article first appeared in DNA)

Demonetisation: Ex-finance minister Chidambaram slams move

By Dipu Rai&nbsp;

A month after India demonetised&nbsp;high-value currency notes, the Income-Tax (I-T) department and the Enforcement Directorate (ED) conducted nationwide raids to detect money-laundering and hawala transactions (money transfer without money movement).

Income Tax department officials continued raids on the premises of three Chennai-based businessmen for the second day on Friday. So far, the investigation wing has seized 127 kg of gold bars worth Rs 36.29 crore, fresh Rs 2,000 notes amounting Rs 9.63 crore, and demonetised currency notes of Rs 500 and Rs 1,000 amounting to Rs 97 crore.

They were seized from the residence of Tirumala Tirupati Devasthanam (TTD) member Shekhar Reddy. Also known as Isuka (sand), Reddy runs a sand-mining ring in Tamil Nadu. Eight premises (six residential and two commercial) were searched. Tax authorities told DNA that strong evidence has emerged about the involvement of a senior political figure and some top bureaucrats of Tamil Nadu in the money-laundering ring.

In Delhi, tax authorities stormed Axis Bank&#39;s Chandni Chowk as soon as it opened.&nbsp;Around 50 fake accounts were unearthed, DNA reported.&nbsp;

Officials said that &quot;Rs 500 crore have been deposited in the branch since the day the ban was announced&hellip; We are scrutinising the documents of depositors&quot;.

They confirmed that two public sector&nbsp;banks were also being raided. This is the second raid at Axis Bank. Last month, officials had apprehended two people with Rs 3.5 crore in new currency notes as they were coming out of the Kashmiri Gate branch. Axis Bank authorities did not respond to repeated calls and messages.

Last week, I-T investigations at Mumbai unearthed a syndicate converting banned currency notes into legal tenders for a commission.&nbsp;I-T officials had sent a few decoy customers, the syndicate agreed to exchange the notes for a 35 per cent commission. The exchange was to take place at the mediator&#39;s residence. The mediator was caught red-handed and new currency notes aggregating Rs 29.5 lakh were seized.

Similarly, an investigation into the cash deposits in a bank account in Nagpur revealed that the account holder had no knowledge of the existence of Rs 3.29 crore, deposited after November 8, in her account. It later came to light that there were six more such accounts in her&#39;s and her parents&#39; names.

Central Board of Direct Taxes Chairman, Sushil Chandra asked Principal Chief Commissioners to provide manpower from different wings to assist raiding and assessing teams.

(This article first appeared in DNA)

Income tax officials have recovered Rs 97 crore worth of gold bars and currency notes from three Chennai-based businessmen

By Dipu Rai A month after India demonetised high-value currency notes, the Income-Tax (I-T) department and the Enforcement Directorate (ED) conducted nationwide raids to detect money-laundering and hawala transactions (money transfer without money movement). Income Tax department officials continued raids on the premises of three Chennai-based businessmen for the second day on Friday. So far, the investigation wing has seized 127 kg of gold bars worth Rs 36.29 crore, fresh Rs 2,000 notes amounting Rs 9.63 crore, and demonetised currency notes of Rs 500 and Rs 1,000 amounting to Rs 97 crore. They were seized from the residence of Tirumala Tirupati Devasthanam (TTD) member Shekhar Reddy. Also known as Isuka (sand), Reddy runs a sand-mining ring in Tamil Nadu. Eight premises (six residential and two commercial) were searched. Tax authorities told DNA that strong evidence has emerged about the involvement of a senior political figure and some top bureaucrats of Tamil Nadu in the money-laundering ring. In Delhi, tax authorities stormed Axis Bank's Chandni Chowk as soon as it opened. Around 50 fake accounts were unearthed, DNA reported. Officials said that "Rs 500 crore have been deposited in the branch since the day the ban was announced… We are scrutinising the documents of depositors". They confirmed that two public sector banks were also being raided. This is the second raid at Axis Bank. Last month, officials had apprehended two people with Rs 3.5 crore in new currency notes as they were coming out of the Kashmiri Gate branch. Axis Bank authorities did not respond to repeated calls and messages. Last week, I-T investigations at Mumbai unearthed a syndicate converting banned currency notes into legal tenders for a commission. I-T officials had sent a few decoy customers, the syndicate agreed to exchange the notes for a 35 per cent commission. The exchange was to take place at the mediator's residence. The mediator was caught red-handed and new currency notes aggregating Rs 29.5 lakh were seized. Similarly, an investigation into the cash deposits in a bank account in Nagpur revealed that the account holder had no knowledge of the existence of Rs 3.29 crore, deposited after November 8, in her account. It later came to light that there were six more such accounts in her's and her parents' names. Central Board of Direct Taxes Chairman, Sushil Chandra asked Principal Chief Commissioners to provide manpower from different wings to assist raiding and assessing teams. (This article first appeared in DNA)

Demonetisation: Nationwide tax raids conducted to unearth money-laundering

After his speech in the Rajya Sabha on demonetisation, former Prime Minister Manmohan Singh has elaborated on his comments in a column in The Hindu on Friday.

Singh wrote that in the attempt to crack down on black money, the government had made it easier to generate unaccounted wealth with the introduction of a Rs.2,000 note. &quot;This brazen policy measure has neither tackled the stock of black money holistically nor has it stemmed the flow of it,&quot; he opined.

In his column, Singh acknowledged the intentions of Prime Minister Narendra Modi&#39;s move to crack down on fake currency and black money, calling them &quot;honourable&quot; and deserving of whole-hearted support. However, the former PM derided &quot;the false notion that &lsquo;all cash is black money and all black money is in cash&rsquo;&quot;.&nbsp;

&quot;This is far from reality,&quot; he wrote.

Asserting that 90% of the country&#39;s workforce still earned their wages in cash, Singh said that &quot;cash is the bedrock of the lives of these people&quot;. He added that seeing long lines of poor Indians standing to withdraw money for basic sustenance was &quot;heartbreaking&quot;.

Singh wrote that consumer confidence had taken a hit because of the sudden note ban and that this could lead to &quot;severe economic ramifications&quot;. &quot;The macroeconomic impact of this decision of the government is likely to be hazardous,&quot; he said.

The former PM warned of tough times in the next several months as the &quot;ripple effects&quot; of the demonetization decision would be felt on GDP growth and job creation.

Speech in Rajya Sabha 
On Nov 24, in a speech in that Parliament, Singh had termed the roll out of demonetization as &quot;monumental mismanagement&quot; and a case of &quot; organised loot and legalised plunder.&quot;

Singh, who was fielded by the Congress to take on the government made an uncharacteristically hard-hitting speech in the Rajya Sabha in the presence of Modi. The economist- politician said the drive will result in a decline of 2% in GDP and went ahead to warn that it could be an &quot;under estimation&quot;.

&quot;These measures convinced me that the way the scheme has been implemented, it&#39;s a monumental management failure. And, in fact, it is a case of organised loot and legalised plunder. It is not my intention to pick holes what this side or other side does. But I sincerely hope that the PM even in this late hour will help find us practical and pragmatic ways to provide relief to the suffering of the people of this country,&quot; a usually reticent Singh said, attacking the Modi dispensation.

Singh claimed agriculture, the unorganised sector and small industries have been hit hard by demonetization and people were losing faith in the currency and banking system.

&quot;My own feeling is that the national income, that is the GDP of the country, can decline by about 2 percentage points as a result of what has been done. This is an under estimate and not an over estimate. Therefore, I feel the Prime Minister must come with some constructive proposal on how we can implement the scheme and at the same time prevent the distrust that has been caused to the common people,&quot; Singh said.

The BJP later hit out at the former Prime Minister, saying he &quot;lacks credibility&quot; for such an attack as he himself headed the most &quot;corrupt regime ever&quot;. &quot;Manmohan Singh attacking this government for fight against black money lacks credibility. He himself in his 10 years&#39; regime, had not only failed in tackling black money, but is seen as heading the (most) corrupt regime ever in this country. He was responsible for accumulation of black money,&quot; BJP General Secretary said on December 4.

(This report first appeared in DNA)

The former India PM warned of tough months ahead as the 'ripple effects' of demonetisation are felt

After his speech in the Rajya Sabha on demonetisation, former Prime Minister Manmohan Singh has elaborated on his comments in a column in The Hindu on Friday. Singh wrote that in the attempt to crack down on black money, the government had made it easier to generate unaccounted wealth with the introduction of a Rs.2,000 note. "This brazen policy measure has neither tackled the stock of black money holistically nor has it stemmed the flow of it," he opined. In his column, Singh acknowledged the intentions of Prime Minister Narendra Modi's move to crack down on fake currency and black money, calling them "honourable" and deserving of whole-hearted support. However, the former PM derided "the false notion that ‘all cash is black money and all black money is in cash’". "This is far from reality," he wrote. Asserting that 90% of the country's workforce still earned their wages in cash, Singh said that "cash is the bedrock of the lives of these people". He added that seeing long lines of poor Indians standing to withdraw money for basic sustenance was "heartbreaking". Singh wrote that consumer confidence had taken a hit because of the sudden note ban and that this could lead to "severe economic ramifications". "The macroeconomic impact of this decision of the government is likely to be hazardous," he said. The former PM warned of tough times in the next several months as the "ripple effects" of the demonetization decision would be felt on GDP growth and job creation. Speech in Rajya Sabha On Nov 24, in a speech in that Parliament, Singh had termed the roll out of demonetization as "monumental mismanagement" and a case of " organised loot and legalised plunder." Singh, who was fielded by the Congress to take on the government made an uncharacteristically hard-hitting speech in the Rajya Sabha in the presence of Modi. The economist- politician said the drive will result in a decline of 2% in GDP and went ahead to warn that it could be an "under estimation". "These measures convinced me that the way the scheme has been implemented, it's a monumental management failure. And, in fact, it is a case of organised loot and legalised plunder. It is not my intention to pick holes what this side or other side does. But I sincerely hope that the PM even in this late hour will help find us practical and pragmatic ways to provide relief to the suffering of the people of this country," a usually reticent Singh said, attacking the Modi dispensation. Singh claimed agriculture, the unorganised sector and small industries have been hit hard by demonetization and people were losing faith in the currency and banking system. "My own feeling is that the national income, that is the GDP of the country, can decline by about 2 percentage points as a result of what has been done. This is an under estimate and not an over estimate. Therefore, I feel the Prime Minister must come with some constructive proposal on how we can implement the scheme and at the same time prevent the distrust that has been caused to the common people," Singh said. The BJP later hit out at the former Prime Minister, saying he "lacks credibility" for such an attack as he himself headed the most "corrupt regime ever". "Manmohan Singh attacking this government for fight against black money lacks credibility. He himself in his 10 years' regime, had not only failed in tackling black money, but is seen as heading the (most) corrupt regime ever in this country. He was responsible for accumulation of black money," BJP General Secretary said on December 4. (This report first appeared in DNA)

Manmohan Singh: Rs 2,000 note makes it easier to generate unaccounted wealth

An Ahmedabad-based businessmen, Mahesh Shah, who went missing in October&nbsp;after declaring over Rs 13,000 crore in black money in September&nbsp;has resurfaced today, and&nbsp;income tax officials have already taken him&nbsp;in for questioning, <a href="http://www.ndtv.com/india-news/police-question-gujarat-man-who-declared-over-13-000-crores-in-black-money-1633619?pfrom=home-lateststories">NDTV </a>reports.

Mr Shah today&nbsp;told the local news channel&nbsp;ETV Gujarati, &quot;It is not my money. The money belongs to various people including politicians, babus and builders.&quot;

The 67-year-old was taken to an undisclosed location by police and tax officials for questioning.

Shah had been on the radar of Income Tax authorities after declaring such a huge amount under the Income Declaration Scheme, which was designed to provide immunity to those who have decided to declare and pay the required taxes on income they were previously hiding.

Shah reportedly went missing just a few days prior to the November 30 deadline for depositing one quarter of the disclosed amount.

Income Tax officials have searched Mr Shah&#39;s office and home, and also the the dwelling of his chartered accountant, Tehmul Sethna, who assisted Shah.&nbsp;Mr Sethna said of Shah,&nbsp;&quot;I can tell you that he is very well connected and has been into big dealings. I had no reason to doubt his credentials.&quot;

The Income Tax department made a point to say that they assured Mr Shah that he would be safe when he made the disclosures, but they had not&nbsp;been able to locate the businessman for the past week.

While not much is known about the source of his income, NDTV, citing sources in the Income Tax department, claim Shah had real estate investments in Gujarat, South India and Maharashtra.

(WION)

Mr Shah denies it is his money, but he abruptly went missing after depositing a quarter of the sum. He's back, and authorities have him now

An Ahmedabad-based businessmen, Mahesh Shah, who went missing in October after declaring over Rs 13,000 crore in black money in September has resurfaced today, and income tax officials have already taken him in for questioning, NDTV reports. Mr Shah today told the local news channel ETV Gujarati, "It is not my money. The money belongs to various people including politicians, babus and builders." The 67-year-old was taken to an undisclosed location by police and tax officials for questioning. Shah had been on the radar of Income Tax authorities after declaring such a huge amount under the Income Declaration Scheme, which was designed to provide immunity to those who have decided to declare and pay the required taxes on income they were previously hiding. Shah reportedly went missing just a few days prior to the November 30 deadline for depositing one quarter of the disclosed amount. Income Tax officials have searched Mr Shah's office and home, and also the the dwelling of his chartered accountant, Tehmul Sethna, who assisted Shah. Mr Sethna said of Shah, "I can tell you that he is very well connected and has been into big dealings. I had no reason to doubt his credentials." The Income Tax department made a point to say that they assured Mr Shah that he would be safe when he made the disclosures, but they had not been able to locate the businessman for the past week. While not much is known about the source of his income, NDTV, citing sources in the Income Tax department, claim Shah had real estate investments in Gujarat, South India and Maharashtra. (WION)

Police question Gujarati businessman who declared about $2 billion in black money

Aiming to move towards a cashless India, the Centre and states could soon have powers to specify categories of employers who will have to pay wages either through cheques or by crediting the amount directly into the workers&#39; bank account.

&quot;Government is ready with the Payment of Wages (Amendment) Bill, 2016 which seeks to empower the Centre as well as states to specify industrial or other establishments where employers shall pay workers either by cheque or by crediting wages into their bank accounts,&quot; a source said.

&quot;The proposal to amend the Payment of Wages Act 1936, is likely to be placed before Union Cabinet for approval in the next few days. Government intends to push the bill during the ongoing winter session of the Parliament after Cabinet nod,&quot; the source added.

At present, an employer is required to obtain a written authorisation from the employee to pay wages either through cheque or by crediting it into the employee&#39;s bank account.

The Act had come into force on April 23, 1936, providing for payment of wage in coin or currency notes, or in both. The provision for payment of wages by cheque or crediting it into bank account after obtaining the requisite authorisation of employee was inserted in 1975.

At present, the Act covers all those employees in certain categories of establishments whose wage does not exceed Rs 18,000 per month.

Presently, the Centre can make rules regarding payment of wages in relation to railways, air transport services, mines and oilfields and its establishments, while states take&nbsp;the call regarding all other cases.

(PTI)&nbsp;

Currently, employers must obtain the employee's permission to pay wages via cheque or direct deposit, but governments want to change that

Aiming to move towards a cashless India, the Centre and states could soon have powers to specify categories of employers who will have to pay wages either through cheques or by crediting the amount directly into the workers' bank account. "Government is ready with the Payment of Wages (Amendment) Bill, 2016 which seeks to empower the Centre as well as states to specify industrial or other establishments where employers shall pay workers either by cheque or by crediting wages into their bank accounts," a source said. "The proposal to amend the Payment of Wages Act 1936, is likely to be placed before Union Cabinet for approval in the next few days. Government intends to push the bill during the ongoing winter session of the Parliament after Cabinet nod," the source added. At present, an employer is required to obtain a written authorisation from the employee to pay wages either through cheque or by crediting it into the employee's bank account. The Act had come into force on April 23, 1936, providing for payment of wage in coin or currency notes, or in both. The provision for payment of wages by cheque or crediting it into bank account after obtaining the requisite authorisation of employee was inserted in 1975. At present, the Act covers all those employees in certain categories of establishments whose wage does not exceed Rs 18,000 per month. Presently, the Centre can make rules regarding payment of wages in relation to railways, air transport services, mines and oilfields and its establishments, while states take the call regarding all other cases. (PTI)

Centre, states to list industries for cashless wage payment

The lower house of the Indian Parliament, Lok Sabha today passed the Taxation Laws (Second Amendment) Bill 2016 to impose tax on deposits made post the announcement of demonetisation on Novemver 8.&nbsp;

The amendment was cleared by the house without debate amid repeated adjournments.

With the amendment made to the IT Act, the government can impose a 50 per cent tax on cash deposits that is above a certain limit, which is yet to be specified.&nbsp;

The government had proposed to raise penalty under Income Tax Act for search and seizure cases by 3-fold to 30 per cent.&nbsp;

Finance minister Arun Jaitley said the government&#39;s move was aimed at deterring black money holders from misusing the provisions for turning their unaccounted cash into white.&nbsp;

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Govt moved amendments in Income tax law aftr it saw tht a few ppl were still trying to convert black money into white post-demonetisation-FM
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/803530302828122112">November 29, 2016</a></blockquote>
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&nbsp;

The opposition leaders had raised the demand for a debate on demonetisation through an adjournment motion, but Hukum Singh (BJP), who was chairing the proceedings, asked them to wait till he asks members to lay the matters of urgent poublic importance.&nbsp;

The opposition parties continued their tirade against the government in both houses of the Parliament.

More than 30 opposition members, including those from the Congress, TMC and the Left parties, trooped into the Well shouting slogans.&nbsp;

(WION with inputs from agencies)&nbsp; 
&nbsp;

Finance minister said the government move to raise penalty to 30% was aimed at deterring black money holders

The lower house of the Indian Parliament, Lok Sabha today passed the Taxation Laws (Second Amendment) Bill 2016 to impose tax on deposits made post the announcement of demonetisation on Novemver 8. The amendment was cleared by the house without debate amid repeated adjournments. With the amendment made to the IT Act, the government can impose a 50 per cent tax on cash deposits that is above a certain limit, which is yet to be specified. The government had proposed to raise penalty under Income Tax Act for search and seizure cases by 3-fold to 30 per cent. Finance minister Arun Jaitley said the government's move was aimed at deterring black money holders from misusing the provisions for turning their unaccounted cash into white. Govt moved amendments in Income tax law aftr it saw tht a few ppl were still trying to convert black money into white post-demonetisation-FM — ANI (@ANI_news) November 29, 2016 × The opposition leaders had raised the demand for a debate on demonetisation through an adjournment motion, but Hukum Singh (BJP), who was chairing the proceedings, asked them to wait till he asks members to lay the matters of urgent poublic importance. The opposition parties continued their tirade against the government in both houses of the Parliament. More than 30 opposition members, including those from the Congress, TMC and the Left parties, trooped into the Well shouting slogans. (WION with inputs from agencies)

Demonetisation: Lower house of Indian Parliament passes Bill to impose taxes on unaccounted cash deposits

While crores of people wait outside the banks across country to deposit and withdraw their hard-earned money, those in possession of black money have figured out a way to convert it into white.&nbsp;

WION got in touch with agents who have been involved&nbsp;in such murky dealings to understand the modus operandi of the entire process of converting black money into new legal tenders. (WION has audio recordings in possession).

The touts, who did not want to reveal their names, said they were in cahoots with bank managers as they provide them with whatever&nbsp;cash they require in new currency notes.&nbsp;

&quot;The bank manager has to be told a day in advance about the amount needed in new notes (to convert black money into white). The next morning, when RBI ( Reserve Bank Of India) sends money to his branch, the manager gives us the money and tells other customers who gather at the branch that they have a cash crunch and cannot dispense the amount they require,&quot; one of the agents said.&nbsp;

When asked about how managers manage to fudge the old and new cash balance,&nbsp;the agents said that they are in touch with different chartered accountants who have hundreds of bank accounts in different branches.&nbsp;

&quot;The bank managers make bogus entry under the accounts of these chartered accountants. In their records, they show that they exchanged certain amount of old currency into new currency for the chartered accountants and put the fake entries under the multiple accounts held by them,&quot; an agent explained.&nbsp;

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To substantiate the claim of these agents, WION spoke to customers visiting banks to get their currency exchanged.

Shaguna Kanwar, a social worker by profession, told us that she had to wait in a queue at a bank for nearly three hours and was then told that they have run out of new notes. She said she received Rs 15,000 in new currency only after she made a &quot;hue and cry&quot;.&nbsp;

&quot;It is suprising that the bank managed to find new notes for me when they officially declared that they are left with no more cash,&quot; Shaguna told WION.&nbsp;

The touts said the bank managers were charging 20 per cent in commission from them.

As for the agents, they ask for a 30 per cent commission from customers who want to legalise their unaccounted wealth.

&quot;This means that a person will have to pay Rs 4.5 crore in commission to us if he wants to convert Rs 15 crore&nbsp;into white money,&quot;&nbsp;an unnamed agent told WION.&nbsp;

If the claims made by the agents are true, it exposes and undermines the federal government&#39;s plan to crack down on black money.&nbsp;

(WION)

Agents explain how bank managers and chartered accountants are exploiting loopholes to help those with unaccounted wealth

While crores of people wait outside the banks across country to deposit and withdraw their hard-earned money, those in possession of black money have figured out a way to convert it into white. WION got in touch with agents who have been involved in such murky dealings to understand the modus operandi of the entire process of converting black money into new legal tenders. (WION has audio recordings in possession). The touts, who did not want to reveal their names, said they were in cahoots with bank managers as they provide them with whatever cash they require in new currency notes. "The bank manager has to be told a day in advance about the amount needed in new notes (to convert black money into white). The next morning, when RBI ( Reserve Bank Of India) sends money to his branch, the manager gives us the money and tells other customers who gather at the branch that they have a cash crunch and cannot dispense the amount they require," one of the agents said. When asked about how managers manage to fudge the old and new cash balance, the agents said that they are in touch with different chartered accountants who have hundreds of bank accounts in different branches. "The bank managers make bogus entry under the accounts of these chartered accountants. In their records, they show that they exchanged certain amount of old currency into new currency for the chartered accountants and put the fake entries under the multiple accounts held by them," an agent explained. To substantiate the claim of these agents, WION spoke to customers visiting banks to get their currency exchanged. Shaguna Kanwar, a social worker by profession, told us that she had to wait in a queue at a bank for nearly three hours and was then told that they have run out of new notes. She said she received Rs 15,000 in new currency only after she made a "hue and cry". "It is suprising that the bank managed to find new notes for me when they officially declared that they are left with no more cash," Shaguna told WION. The touts said the bank managers were charging 20 per cent in commission from them. As for the agents, they ask for a 30 per cent commission from customers who want to legalise their unaccounted wealth. "This means that a person will have to pay Rs 4.5 crore in commission to us if he wants to convert Rs 15 crore into white money," an unnamed agent told WION. If the claims made by the agents are true, it exposes and undermines the federal government's plan to crack down on black money. (WION)

Exclusive: Touts, bank managers beat the system to convert black money into white

Tax department has unearthed Rs 32,000 crore through searches in last three fiscals and found that use of black money is rampant in sectors like real estate and educational institutions, government said today.

&quot;The data indicates that the main sectors in which black money is rampant include real estate, finance, trading, manufacturing, educational institutes and services,&quot; Minister of State for Finance Santosh Kumar Gangwar said in a written reply in the Lok Sabha.

During 2015-16, the I-T Department conducted 445 searches which discovered undisclosed income of Rs 11,066 crore. Total assets seized were Rs 712.68 crore.

Also 545 searches conducted in 2014-15 have led to admission of undisclosed income worth Rs 10,288 crore. Total assets seized amounted to Rs 761.70 crore.

Besides, 569 searches in 2013-14 saw admission of undisclosed income of Rs 10,791.63 crore and asset seizure of Rs 807.84 crore.

This takes the total undisclosed income which was admitted during searches to Rs 32,146 crore.

Analysis of the searches by the Income Tax department during the last three financial years indicates that the persons searched were involved in multiple activities in varied sectors, Gangwar said.

He said the government has taken several measures to effectively tackle the issue of black money. These include prohibition of acceptance of payment/advance of Rs 20,000 or more in cash, enactment of benami transaction law and mandatory quoting of PAN for transaction above Rs 2 lakh.

In reply to another question in the Lok Sabha, Gangwar said that between April and October, the Enforcement Directorate registered 109 cases under FEMA involving Hawala transactions.

During 2015-16, 138 such cases were registered under FEMA, while in 2014-15 it was 104 and in 2013-14 it was 75. &quot;The above cases may include a few cases relating to illegal activities and terrorism also,&quot; Gangwar said.

(PTI)

During 2015-16, the I-T Department conducted 445 searches which discovered undisclosed income of Rs 11,066 crore (USD 1616 million)

Tax department has unearthed Rs 32,000 crore through searches in last three fiscals and found that use of black money is rampant in sectors like real estate and educational institutions, government said today. "The data indicates that the main sectors in which black money is rampant include real estate, finance, trading, manufacturing, educational institutes and services," Minister of State for Finance Santosh Kumar Gangwar said in a written reply in the Lok Sabha. During 2015-16, the I-T Department conducted 445 searches which discovered undisclosed income of Rs 11,066 crore. Total assets seized were Rs 712.68 crore. Also 545 searches conducted in 2014-15 have led to admission of undisclosed income worth Rs 10,288 crore. Total assets seized amounted to Rs 761.70 crore. Besides, 569 searches in 2013-14 saw admission of undisclosed income of Rs 10,791.63 crore and asset seizure of Rs 807.84 crore. This takes the total undisclosed income which was admitted during searches to Rs 32,146 crore. Analysis of the searches by the Income Tax department during the last three financial years indicates that the persons searched were involved in multiple activities in varied sectors, Gangwar said. He said the government has taken several measures to effectively tackle the issue of black money. These include prohibition of acceptance of payment/advance of Rs 20,000 or more in cash, enactment of benami transaction law and mandatory quoting of PAN for transaction above Rs 2 lakh. In reply to another question in the Lok Sabha, Gangwar said that between April and October, the Enforcement Directorate registered 109 cases under FEMA involving Hawala transactions. During 2015-16, 138 such cases were registered under FEMA, while in 2014-15 it was 104 and in 2013-14 it was 75. "The above cases may include a few cases relating to illegal activities and terrorism also," Gangwar said. (PTI)

Black money rampant in educational institutions, real estate: Indian Government

Attacking the Modi government, former Prime Minister Manmohan Singh on Thursday called the implementation of demonetisation as &#39;monumental management failure&#39; and urged the Prime Minister to find a practical and pragmatic solution to give relief to the common man.

&quot;We don&#39;t disagree with the objective of fighting graft but it was a monumental management failure the way it was done. It&#39;s a case of organised loot and legalised plunder,&quot; Singh said after Rajya Sabha resumed debate on demonetisation in Prime Minister Narendra Modi&#39;s presence.

&quot;It is important to take note of the grievances of the people suffering. 60 to 65 people have lost their lives, what has been done can weaken our people&#39;s confidence in currency and banking system,&quot; he added.

Stating that the PM had asked people to wait for 50 days but for the poor section even 50 days can be detrimental, he said. adding, &quot;I want to ask PM, can he name any country where people have deposited their money but are not able to withdraw it?&quot;

The former prime minister also said that the way demonetisation was implemented would hurt agriculture, small businesses and informal sector and that the GDP would see a decline of at least 2.5%.

Taking on RBI for every day modification of rules, Singh said, &quot;It is not good that every day the banking system comes out with modification. The cooperative banking sector which is serving large number in the rural sector is not operational. PM must come with some constructive proposal on how we can implement the scheme.&quot;

Earlier in the day, opposition parties decided not to hold talks with the government over demonetization till November 28 when they will mark the &#39;Aakrosh Diwas&#39;.

(This article first appeared on DNA)

The former prime minister also said that the way demonetisation was implemented would hurt agriculture, small businesses and informal sector

Attacking the Modi government, former Prime Minister Manmohan Singh on Thursday called the implementation of demonetisation as 'monumental management failure' and urged the Prime Minister to find a practical and pragmatic solution to give relief to the common man. "We don't disagree with the objective of fighting graft but it was a monumental management failure the way it was done. It's a case of organised loot and legalised plunder," Singh said after Rajya Sabha resumed debate on demonetisation in Prime Minister Narendra Modi's presence. "It is important to take note of the grievances of the people suffering. 60 to 65 people have lost their lives, what has been done can weaken our people's confidence in currency and banking system," he added. Stating that the PM had asked people to wait for 50 days but for the poor section even 50 days can be detrimental, he said. adding, "I want to ask PM, can he name any country where people have deposited their money but are not able to withdraw it?" The former prime minister also said that the way demonetisation was implemented would hurt agriculture, small businesses and informal sector and that the GDP would see a decline of at least 2.5%. Taking on RBI for every day modification of rules, Singh said, "It is not good that every day the banking system comes out with modification. The cooperative banking sector which is serving large number in the rural sector is not operational. PM must come with some constructive proposal on how we can implement the scheme." Earlier in the day, opposition parties decided not to hold talks with the government over demonetization till November 28 when they will mark the 'Aakrosh Diwas'. (This article first appeared on DNA)

Demonetisation 'monumental management failure', find practical solution: Former PM to govt

Bj&ouml;rn Ulvaeus led Sweden&rsquo;s cashless revolution. When it comes to talking about a cashless economy, the name of Sweden tops the charts. It is an interesting story as to how Sweden turned into a cashless economy. Bj&ouml;rn&rsquo;s son&rsquo;s Stockholm apartment was burgled twice in 2008. The incident set him thinking that if Sweden were a cashless society, then the robbers won&rsquo;t be able to sell what they stole.

Two years later, Bj&ouml;rn opened the ABBA Museum that didn&rsquo;t accept cash. People as well as banks started to take notice of this. The Swedish banks created a cashless app, &lsquo;Swish&rsquo;, and soon, Swedes began Swishing.

By 2011, Sweden&rsquo;s society was completely revolutionised. Bills and coins made up just 2 per cent of Sweden&rsquo;s economy. Only 20 per cent of transactions in Sweden were taking place in cash compared to 75 per cent in rest of the world.

Where did it all begin?

Theft may have been the reason to inspire a citizen of Sweden to revolutionise the country into a cashless economy, India has several of its own issues that should motivate its government and the citizens to take concerted steps to move towards a cashless economy.

Corruption leading to a mammoth black economy is eating away the Indian economy from within every day. But an important question to ask at this point is that how did we reach here? How did it all begin?

At the time of independence, the Indian economy adopted a mixed economy model with the government having significant control over the private sector. To start any industry or to even slightly change a product, an individual needed to take a license or seek permission of the government i.e. the infamous bureaucrat.

It may have been a good policy for a newly independent young nation where every sector and individual needed the guidance of its elected representatives. However, this guidance was stretched too far, so much that it started suffocating its own citizens. The laws became so overbearing that during the regime of Indira Gandhi 1973-74, India&rsquo;s personal income tax had eleven tax brackets with highest marginal income tax rate of 97.5 per cent. And god forbid, if one&rsquo;s income was in the range of Rs. 10 lakh to Rs. 10.3 lakh, then the maximum marginal rate of tax was 103 per cent.

Thus, people started finding ways to circumvent their own laws. Bribing the bureaucrats to get a license to start an industry became a common practice. It became the habit of people to find loopholes in the laws to avoid taxes. Even with Indian economy going under several positive transitions over the years, this habit has not changed and we have created a black economy that accounts for almost 23.7 per cent of India&#39;s GDP. According to the government data, only 3.8 per cent of Indian&rsquo;s pay taxes.&nbsp; Changing people&rsquo;s behaviour is another huge challenge that the government is facing.

Corruption may have given birth to a black economy in India but now this parallel economy has taken a life of its own. It is plaguing every sector of the economy. It is the in the higher education sector in the form of paid seats, in the real estate sector, in trade in the form of misinvoicing, political campaigns, small businesses largely running on unaccounted cash etc.

Where do we stand now?

What many Indians do not understand is that the black economy may be benefitting them in the short-term but in the long run, it serves no good. When one pays for his/her home in cash, one is contributing significantly in inflating the prices in the housing sector.&nbsp;One is fooled into thinking that the prices are rising. What is really happening is that the cash economy which has been flooding the real estate is going to make a killing. The plan is so subversive that even somebody who only has white money is made to change into black and in the process making the real estate&rsquo;s mafia&rsquo;s black money into white. It is like a Ponzi scheme, just that people don&rsquo;t realise that they are being sucked into it.

The cash economy further deepens corruption. Only if there is cash floating around can one give away unaccounted cash for bribery or other illicit activities.

Don&rsquo;t get lost in the present mess

After the government&rsquo;s announcement on November 8th to recall 500 and 1000 rupee denomination notes, there has been serious liquidity crunch in the economy as these notes constituted almost 86 per cent of the circulation. &nbsp;

As a result, there have been long waiting lines to exchange money, causing inconvenience to the citizens of the country. However, the challenge that the economy is looking at in the face of black money, this is a small price to pay. &nbsp;

The challenge is so strong that it would have been impossible to make any significant change by taking baby steps. Somebody said that by making small changes in how a candle works would not have led to the discovery of electricity and then a bulb. It required a completely revolutionary and out of the box thinking. Similarly, only a dramatic change like the current one can put India&rsquo;s name on the list of one of the least corrupt countries in the world.

A peek into the history of cashless transactions may be the key to helping us deal with current times

Björn Ulvaeus led Sweden’s cashless revolution. When it comes to talking about a cashless economy, the name of Sweden tops the charts. It is an interesting story as to how Sweden turned into a cashless economy. Björn’s son’s Stockholm apartment was burgled twice in 2008. The incident set him thinking that if Sweden were a cashless society, then the robbers won’t be able to sell what they stole. Two years later, Björn opened the ABBA Museum that didn’t accept cash. People as well as banks started to take notice of this. The Swedish banks created a cashless app, ‘Swish’, and soon, Swedes began Swishing. By 2011, Sweden’s society was completely revolutionised. Bills and coins made up just 2 per cent of Sweden’s economy. Only 20 per cent of transactions in Sweden were taking place in cash compared to 75 per cent in rest of the world. Where did it all begin? Theft may have been the reason to inspire a citizen of Sweden to revolutionise the country into a cashless economy, India has several of its own issues that should motivate its government and the citizens to take concerted steps to move towards a cashless economy. Corruption leading to a mammoth black economy is eating away the Indian economy from within every day. But an important question to ask at this point is that how did we reach here? How did it all begin? At the time of independence, the Indian economy adopted a mixed economy model with the government having significant control over the private sector. To start any industry or to even slightly change a product, an individual needed to take a license or seek permission of the government i.e. the infamous bureaucrat. It may have been a good policy for a newly independent young nation where every sector and individual needed the guidance of its elected representatives. However, this guidance was stretched too far, so much that it started suffocating its own citizens. The laws became so overbearing that during the regime of Indira Gandhi 1973-74, India’s personal income tax had eleven tax brackets with highest marginal income tax rate of 97.5 per cent. And god forbid, if one’s income was in the range of Rs. 10 lakh to Rs. 10.3 lakh, then the maximum marginal rate of tax was 103 per cent. Thus, people started finding ways to circumvent their own laws. Bribing the bureaucrats to get a license to start an industry became a common practice. It became the habit of people to find loopholes in the laws to avoid taxes. Even with Indian economy going under several positive transitions over the years, this habit has not changed and we have created a black economy that accounts for almost 23.7 per cent of India's GDP. According to the government data, only 3.8 per cent of Indian’s pay taxes. Changing people’s behaviour is another huge challenge that the government is facing. Corruption may have given birth to a black economy in India but now this parallel economy has taken a life of its own. It is plaguing every sector of the economy. It is the in the higher education sector in the form of paid seats, in the real estate sector, in trade in the form of misinvoicing, political campaigns, small businesses largely running on unaccounted cash etc. Where do we stand now? What many Indians do not understand is that the black economy may be benefitting them in the short-term but in the long run, it serves no good. When one pays for his/her home in cash, one is contributing significantly in inflating the prices in the housing sector. One is fooled into thinking that the prices are rising. What is really happening is that the cash economy which has been flooding the real estate is going to make a killing. The plan is so subversive that even somebody who only has white money is made to change into black and in the process making the real estate’s mafia’s black money into white. It is like a Ponzi scheme, just that people don’t realise that they are being sucked into it. The cash economy further deepens corruption. Only if there is cash floating around can one give away unaccounted cash for bribery or other illicit activities. Don’t get lost in the present mess After the government’s announcement on November 8th to recall 500 and 1000 rupee denomination notes, there has been serious liquidity crunch in the economy as these notes constituted almost 86 per cent of the circulation. As a result, there have been long waiting lines to exchange money, causing inconvenience to the citizens of the country. However, the challenge that the economy is looking at in the face of black money, this is a small price to pay. The challenge is so strong that it would have been impossible to make any significant change by taking baby steps. Somebody said that by making small changes in how a candle works would not have led to the discovery of electricity and then a bulb. It required a completely revolutionary and out of the box thinking. Similarly, only a dramatic change like the current one can put India’s name on the list of one of the least corrupt countries in the world.

Cashless but not moneyless

The Indian government has said that people using other persons&#39; bank accounts to convert their black money into new denomination notes will be subjected to income tax and penalty if it is found that the amount did not belong to the account holder.

Prime Minister Narendra Modi announced the demonetisation move on November 8, withdrawing from circulation currency notes of Rs 500 and Rs 1,000.

The Indian government later said that small deposits made in banks by artisans, workers, housewives, would not be questioned by the Income Tax (IT) department considering the present exemption limit for Income Tax being Rs 2.5 lakh.

However, there have been reports in the media of instances where people are using other persons&#39;&nbsp;bank accounts to convert their black money into new denomination notes in exchange of a particular percentage of the amount.

This activity was reported in some Jan-Dhan accounts too.

The government has said that the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under Income Tax Act.

However, genuine persons depositing their household savings in cash into their bank accounts would not be questioned.

The government has urged people to help it curb black money, to make its mission successful.

Also, people have been encouraged to give information of illegal activities to the IT department so that immediate action can be taken and such illegal transfer of cash can be stopped and seized.

(WION with inputs from agencies)

There have been reports of people using other persons'?accounts to convert their black money into new denomination notes

The Indian government has said that people using other persons' bank accounts to convert their black money into new denomination notes will be subjected to income tax and penalty if it is found that the amount did not belong to the account holder. Prime Minister Narendra Modi announced the demonetisation move on November 8, withdrawing from circulation currency notes of Rs 500 and Rs 1,000. The Indian government later said that small deposits made in banks by artisans, workers, housewives, would not be questioned by the Income Tax (IT) department considering the present exemption limit for Income Tax being Rs 2.5 lakh. However, there have been reports in the media of instances where people are using other persons' bank accounts to convert their black money into new denomination notes in exchange of a particular percentage of the amount. This activity was reported in some Jan-Dhan accounts too. The government has said that the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under Income Tax Act. However, genuine persons depositing their household savings in cash into their bank accounts would not be questioned. The government has urged people to help it curb black money, to make its mission successful. Also, people have been encouraged to give information of illegal activities to the IT department so that immediate action can be taken and such illegal transfer of cash can be stopped and seized. (WION with inputs from agencies)

Demonetisation: Don't use others' accounts for black money conversion, Indian government warns

Faced with liquidity comfort, major lenders, including ICICI and HDFC Bank, today lowered FD rates by up to 0.25 per cent in view of surge in deposits following the demonetisation.

The lowering in fixed deposit rates may herald reduction in lending rate as well in the next few days.

For fixed deposit between 390 days to 2 years, the banks has lowered the interest rate by 0.15 per cent effective yesterday, ICICI Bank website showed. ICICI Bank will pay 7.10 per cent as against 7.25 per cent earlier.

Meanwhile, HDFC Bank has reduced interest rate by 0.25 per cent across all tenures on bulk deposits ranging between Rs 1-5 crore. The new rates are effective today, as per HDFC Bank website.

With the revised interest rates, the one-year fixed deposit will attract an interest rate of 6.75 per cent as against the 7 per cent earlier.

For fixed deposits between &#39;3 years 1 day-5 years&#39;, the rate has been lowered to 6.5 per cent from 6.75 per cent.

Yesterday, the country&#39;s largest lender SBI slashed fixed deposit rates on select maturities by up to 0.15 per cent.

Private lender Axis Bank has cut marginal cost of fund-based lending rate (MCLR) by 0.15-0.20 per cent.

Till yesterday, SBI collected Rs 1,14,139 crore in deposits over the last seven days after the government announced to scrap Rs 500 and Rs 1,000 notes.

(PTI)

&nbsp;

The lowering in fixed deposit rates may herald reduction in lending rate as well in the next few days

Faced with liquidity comfort, major lenders, including ICICI and HDFC Bank, today lowered FD rates by up to 0.25 per cent in view of surge in deposits following the demonetisation. The lowering in fixed deposit rates may herald reduction in lending rate as well in the next few days. For fixed deposit between 390 days to 2 years, the banks has lowered the interest rate by 0.15 per cent effective yesterday, ICICI Bank website showed. ICICI Bank will pay 7.10 per cent as against 7.25 per cent earlier. Meanwhile, HDFC Bank has reduced interest rate by 0.25 per cent across all tenures on bulk deposits ranging between Rs 1-5 crore. The new rates are effective today, as per HDFC Bank website. With the revised interest rates, the one-year fixed deposit will attract an interest rate of 6.75 per cent as against the 7 per cent earlier. For fixed deposits between '3 years 1 day-5 years', the rate has been lowered to 6.5 per cent from 6.75 per cent. Yesterday, the country's largest lender SBI slashed fixed deposit rates on select maturities by up to 0.15 per cent. Private lender Axis Bank has cut marginal cost of fund-based lending rate (MCLR) by 0.15-0.20 per cent. Till yesterday, SBI collected Rs 1,14,139 crore in deposits over the last seven days after the government announced to scrap Rs 500 and Rs 1,000 notes. (PTI)

Cash flood: ICICI, HDFC Bank cut fixed deposit rates by 0.25%

Chief ministers Arvind Kejriwal and Mamata Banerjee held a protest outside Reserve Bank of India in Delhi on Thursday, press Trust of India reported.

The AAP chief asked the government to roll back demonetisation in three days while the TMC supremo said such a crisis was not seen even during Emergency.

Addressing a rally in Delhi, Kejriwal alleged that demonetisation was the &quot;biggest scam&quot; in independent India&#39;s history while Banerjee said Modi should not run the country through &quot;dictatorship&quot;, calling the protest a fight to save the country.

The Delhi chief minister alleged that demonetisation was being carried out to write-off around $118 billion (Rs 8 lakh crore) of loan owed by Modi&#39;s &quot;corporate friends&quot; by collecting about $147 billion (Rs 10 lakh crore) from the people through the exercise.

&quot;Black money is flooding the market again. Notes are being home delivered to some people. This is independent India&#39;s biggest scam. The government wants to amass $147 billion by forcing the people to deposit their money in banks and use that amount to write off loans of Modiji&#39;s friends.

&quot;Modiji sent Vijay Mallya, who has huge debt, to London one night. He has also brought people to the streets (following demonetisation). People are being cheated. Why did IT not raid former BJP Minister G Janardana Reddy who spent Rs 500 crores ($5 billion) in his daughter&#39;s wedding? And they want us common people to spend Rs 2.5 lakh ($3686) in a wedding,&quot; he said.

Kejriwal also took a dig at finance minister Arun Jaitley wondering if he spent only Rs 2.5 lakh ($3686) in his daughter&#39;s wedding recently.

&quot;Modiji, do not fool people saying standing in line is patriotism. Who is responsible for the death of 40 people standing in queues?&quot; he said, addressing traders at Azadpur wholesale fruit and vegetable market.

(PTI)

AAP chief demanded the roll back of demonetisation in three days while Banerjee said such a crisis was not seen even during Emergency

Chief ministers Arvind Kejriwal and Mamata Banerjee held a protest outside Reserve Bank of India in Delhi on Thursday, press Trust of India reported. The AAP chief asked the government to roll back demonetisation in three days while the TMC supremo said such a crisis was not seen even during Emergency. Addressing a rally in Delhi, Kejriwal alleged that demonetisation was the "biggest scam" in independent India's history while Banerjee said Modi should not run the country through "dictatorship", calling the protest a fight to save the country. The Delhi chief minister alleged that demonetisation was being carried out to write-off around $118 billion (Rs 8 lakh crore) of loan owed by Modi's "corporate friends" by collecting about $147 billion (Rs 10 lakh crore) from the people through the exercise. "Black money is flooding the market again. Notes are being home delivered to some people. This is independent India's biggest scam. The government wants to amass $147 billion by forcing the people to deposit their money in banks and use that amount to write off loans of Modiji's friends. "Modiji sent Vijay Mallya, who has huge debt, to London one night. He has also brought people to the streets (following demonetisation). People are being cheated. Why did IT not raid former BJP Minister G Janardana Reddy who spent Rs 500 crores ($5 billion) in his daughter's wedding? And they want us common people to spend Rs 2.5 lakh ($3686) in a wedding," he said. Kejriwal also took a dig at finance minister Arun Jaitley wondering if he spent only Rs 2.5 lakh ($3686) in his daughter's wedding recently. "Modiji, do not fool people saying standing in line is patriotism. Who is responsible for the death of 40 people standing in queues?" he said, addressing traders at Azadpur wholesale fruit and vegetable market. (PTI)

Demonetisation: Arvind Kejriwal, Mamata Banerjee protest outside Reserve Bank of India

Essel Group chairman and Rajya Sabha member&nbsp;<a href="http://zeenews.india.com/tags/dr-subhash-chandra.html">Dr Subhash Chandra</a>&nbsp;on Thursday filed a&nbsp;<a href="http://zeenews.india.com/tags/criminal-defamation-case.html">criminal defamation case</a>&nbsp;against Delhi Chief Minister&nbsp;<a href="http://zeenews.india.com/tags/arvind-kejriwal.html">Arvind Kejriwal</a>&nbsp;in a Delhi court.

Kejriwal, who leads the Aam Aadmi Party, had recently mentioned the name of Dr Chandra while referring to those who have allegedly amassed black money.

The case was filed in the Patiala House Court in&nbsp;New Delhi.

If found guilty, Kejriwal can be imprisoned for two years.

Notably,&nbsp;<a href="http://zeenews.india.com/news/videos/top-stories/note-ban-dr-subhash-chandra-appeals-to-people-for-patience-and-time_1949360.html" target="_blank">Dr</a><a href="http://zeenews.india.com/news/videos/top-stories/note-ban-dr-subhash-chandra-appeals-to-people-for-patience-and-time_1949360.html" target="_blank">&nbsp;Subhash Chandra&nbsp;</a>has backed Prime Minister Narendra Modi&rsquo;s war on black money.

When the demonetisation move was announced, he had said: &ldquo;My humble submission to whosoever is listening to this is to support him (PM Modi). This is a good thing for all of us, particularly the common man. Maybe big people like me will hate, but I ask them also, let us stop this. Let us be clean. Let us enjoy the money we earn, because the enjoyment can be only if you make legitimate money. Our military give their lives for the country, why can&#39;t we give him the 50 days that he has asked for. In fact, I am willing to give 500 days. Of course, even today I am very happy because we had no issue of Rs 500 and Rs 1000 notes in our group.&rdquo;

(Zee News)

Rajya Sabha member?Dr Subhash Chandra moved the court after Kejriwal accused him of amassing black money

Essel Group chairman and Rajya Sabha member Dr Subhash Chandra on Thursday filed a criminal defamation case against Delhi Chief Minister Arvind Kejriwal in a Delhi court. Kejriwal, who leads the Aam Aadmi Party, had recently mentioned the name of Dr Chandra while referring to those who have allegedly amassed black money. The case was filed in the Patiala House Court in New Delhi. If found guilty, Kejriwal can be imprisoned for two years. Notably, Dr Subhash Chandra has backed Prime Minister Narendra Modi’s war on black money. When the demonetisation move was announced, he had said: “My humble submission to whosoever is listening to this is to support him (PM Modi). This is a good thing for all of us, particularly the common man. Maybe big people like me will hate, but I ask them also, let us stop this. Let us be clean. Let us enjoy the money we earn, because the enjoyment can be only if you make legitimate money. Our military give their lives for the country, why can't we give him the 50 days that he has asked for. In fact, I am willing to give 500 days. Of course, even today I am very happy because we had no issue of Rs 500 and Rs 1000 notes in our group.” (Zee News)

Dr Subhash Chandra files criminal defamation case against Delhi CM Arvind Kejriwal

India today lowered the exchange limit for now-defunct 500 and 1,000 rupee notes to Rs 2,000 from the existing cap of Rs 4,500, effective tomorrow.

Among other measures, it has allowed up to Rs 2.5 lakh cash withdrawal from the&nbsp;bank account of a bride or groom or their parents for a marriage during the ongoing wedding season.

&quot;To enable a&nbsp;larger number of people to get the&nbsp;benefit of over-the-counter exchange of Rs 500 and Rs 1,000 notes, the existing limit of Rs 4,500 will be reduced to Rs 2,000 with effect from tomorrow,&quot; economic affairs secretary Shaktikanta Das told reporters.

The over-the-counter exchange of Rs 500/1,000 in return of new currency will be available &quot;once per person till December 30&quot;.

&quot;This will enable larger number of people to exchange notes. There is no cash shortage and enough cash is available,&quot; he said.

The Reserve Bank today asked people not to hoard currency.

&quot;The Reserve Bank of India has once again clarified today that there is sufficient supply of notes consequent upon increased production which started nearly two months ago. Members of public are requested not to panic or hoard currency notes,&quot; the central bank said in a statement.

The decision comes a day after the government directed banks to put indelible ink mark on the right index finger of persons to screen them from using the exchange facility more than once.

Prime Minister Narendra Modi had on November 8 demonetised Rs 500 and Rs 1,000 notes in his bigger war against black money, terror financing and counterfeit notes.

Since then a lot of representations have come to Prime Minister and Finance Minister to ease withdrawal norms for wedding purposes.

&quot;This has been considered by the government and decided that for wedding ceremonies, up to Rs 2.5 lakh will be allowed to be withdrawn from account if father or mother or the bride and groom,&quot; Das said.

He said the account has to be KYC compliant and self-declaration has to be given to the bank. The Rs 2.5 lakh can be withdrawn from only one account.

(PTI)

The government, however, has allowed brides, grooms or their parents to withdraw up to Rs 2.5 lakh (about $3,700) from their bank accounts

India today lowered the exchange limit for now-defunct 500 and 1,000 rupee notes to Rs 2,000 from the existing cap of Rs 4,500, effective tomorrow. Among other measures, it has allowed up to Rs 2.5 lakh cash withdrawal from the bank account of a bride or groom or their parents for a marriage during the ongoing wedding season. "To enable a larger number of people to get the benefit of over-the-counter exchange of Rs 500 and Rs 1,000 notes, the existing limit of Rs 4,500 will be reduced to Rs 2,000 with effect from tomorrow," economic affairs secretary Shaktikanta Das told reporters. The over-the-counter exchange of Rs 500/1,000 in return of new currency will be available "once per person till December 30". "This will enable larger number of people to exchange notes. There is no cash shortage and enough cash is available," he said. The Reserve Bank today asked people not to hoard currency. "The Reserve Bank of India has once again clarified today that there is sufficient supply of notes consequent upon increased production which started nearly two months ago. Members of public are requested not to panic or hoard currency notes," the central bank said in a statement. The decision comes a day after the government directed banks to put indelible ink mark on the right index finger of persons to screen them from using the exchange facility more than once. Prime Minister Narendra Modi had on November 8 demonetised Rs 500 and Rs 1,000 notes in his bigger war against black money, terror financing and counterfeit notes. Since then a lot of representations have come to Prime Minister and Finance Minister to ease withdrawal norms for wedding purposes. "This has been considered by the government and decided that for wedding ceremonies, up to Rs 2.5 lakh will be allowed to be withdrawn from account if father or mother or the bride and groom," Das said. He said the account has to be KYC compliant and self-declaration has to be given to the bank. The Rs 2.5 lakh can be withdrawn from only one account. (PTI)

Demonetisation: Govt tightens notes exchange norms, lowers limit to Rs 2,000

Defending the ruling government&#39;s decision on demonetisation, minister of state for power, coal, new and renewable energy and mines Piyush Goyal on Wednesday said that this move has honoured the honest while troubled the dishonest.

&quot;The entire nation is welcoming this step of the government. When the Prime Minister was elected, he was elected on a mandate to curb corruption and black money. For the first time, the honest have been honoured and the dishonest have been troubled. There is no obstruction on the money earned by honest means. This is no curb on anyone`s honest income. This move attacks those who have illicit cash,&quot; Goyal said in the Rajya Sabha.

&quot;We never referred to this move as a surgical strike. If Anand Sharma ji calls it that then we consider it an endorsement of demonetisation. I appeal to the people, please be assured your honest income is not in any danger. You have till 30th December to exchange or deposit old notes, please don`t panic,&quot; he added.

Goyal further said that the people of the country brought the BJP-led NDA to power in 2014 after imposing their trust on Narendra Modi.

&quot;Almost 86 per cent of the Indian currency was in Rs. 500 and Rs. 1,000 notes. Given the high ratio, it seemed obvious that a lot of it was hidden,&quot; he added.

Asserting that demonetisation is an important decision which warned the black money hoarders that there is no room for black money in the economy, Goyal said the honest can go and deposit their money without fear in the banks.

&quot;Slowly and steadily the queues at the banks have been decreasing and the people are willing to face the difficulty for few days, as the decision stands in favour of the nation. Also with the new Rs. 500 and Rs. 2,000 notes in banks, the people are happy,&quot; he added.

Goyal further said that the Reserve Bank of India (RBI) runs the monetary policy, adding this decision was taken after consultation with the central bank.

Lashing out at the government, Congress leader Anand Sharma earlier during the discussion said that an atmosphere has been created by the BJP-led NDA regime wherein questioning the government has become the parameter to decide one`s nationalism.

Sharma said, &quot;I condemn the PM&#39;s statement in Goa for mocking the people, who are standing in queues. He must apologise.&quot; Continuing his outburst against the government, Sharma alleged that the ruling dispensation has brought &quot;financial anarchy&quot; with its move to demonetise high value currency notes.

Sharma said the whole world got the impression that India`s economy runs on black money.

Lashing out at Prime Minister Narendra Modi&#39;s comment that the currency ban would help fight black money and draw out undeclared wealth, Sharma said, &quot;Everyone has become a surgeon, everything is becoming a surgical strike.&quot;

(ANI)

Piyush Goyal said that 'the nation is welcoming this step of the government'

Defending the ruling government's decision on demonetisation, minister of state for power, coal, new and renewable energy and mines Piyush Goyal on Wednesday said that this move has honoured the honest while troubled the dishonest. "The entire nation is welcoming this step of the government. When the Prime Minister was elected, he was elected on a mandate to curb corruption and black money. For the first time, the honest have been honoured and the dishonest have been troubled. There is no obstruction on the money earned by honest means. This is no curb on anyone`s honest income. This move attacks those who have illicit cash," Goyal said in the Rajya Sabha. "We never referred to this move as a surgical strike. If Anand Sharma ji calls it that then we consider it an endorsement of demonetisation. I appeal to the people, please be assured your honest income is not in any danger. You have till 30th December to exchange or deposit old notes, please don`t panic," he added. Goyal further said that the people of the country brought the BJP-led NDA to power in 2014 after imposing their trust on Narendra Modi. "Almost 86 per cent of the Indian currency was in Rs. 500 and Rs. 1,000 notes. Given the high ratio, it seemed obvious that a lot of it was hidden," he added. Asserting that demonetisation is an important decision which warned the black money hoarders that there is no room for black money in the economy, Goyal said the honest can go and deposit their money without fear in the banks. "Slowly and steadily the queues at the banks have been decreasing and the people are willing to face the difficulty for few days, as the decision stands in favour of the nation. Also with the new Rs. 500 and Rs. 2,000 notes in banks, the people are happy," he added. Goyal further said that the Reserve Bank of India (RBI) runs the monetary policy, adding this decision was taken after consultation with the central bank. Lashing out at the government, Congress leader Anand Sharma earlier during the discussion said that an atmosphere has been created by the BJP-led NDA regime wherein questioning the government has become the parameter to decide one`s nationalism. Sharma said, "I condemn the PM's statement in Goa for mocking the people, who are standing in queues. He must apologise." Continuing his outburst against the government, Sharma alleged that the ruling dispensation has brought "financial anarchy" with its move to demonetise high value currency notes. Sharma said the whole world got the impression that India`s economy runs on black money. Lashing out at Prime Minister Narendra Modi's comment that the currency ban would help fight black money and draw out undeclared wealth, Sharma said, "Everyone has become a surgeon, everything is becoming a surgical strike." (ANI)

India's coal minister defends demonetisation, says 'honest has been honoured'

Indian skipper Virat Kohli has been &quot;really impressed&quot; by Prime Minister Narendra Modi`s demonetisation drive aimed at curbing black money and corruption, describing it as the &quot;greatest move&quot; he had seen so far in the Indian politics.

&quot;It&#39;s the greatest move that I have seen in the Indian politics by far; hands down, really impressed,&quot; Kohli said on the eve of the second Test in Visakhapatnam.

Sharing an incident as to how he forgot that old notes were no longer in use, Kohli said, &quot;I was actually going to pay my hotel bills in Rajkot and I was taking out the old money and I forgot that it isn&#39;t of any use anymore.&quot;

The Prime Minister, in a televised address to the nation, had declared that high denomination notes of Rs 500 and Rs 1000 will no longer be legal tender from November 8-9 midnight.

He had said the government has declared a &quot;decisive war&quot; against black money and corruption.

(ANI)

'It's the greatest move that I have seen in Indian politics by far; hands down, really impressed', Kohli said

Indian skipper Virat Kohli has been "really impressed" by Prime Minister Narendra Modi`s demonetisation drive aimed at curbing black money and corruption, describing it as the "greatest move" he had seen so far in the Indian politics. "It's the greatest move that I have seen in the Indian politics by far; hands down, really impressed," Kohli said on the eve of the second Test in Visakhapatnam. Sharing an incident as to how he forgot that old notes were no longer in use, Kohli said, "I was actually going to pay my hotel bills in Rajkot and I was taking out the old money and I forgot that it isn't of any use anymore." The Prime Minister, in a televised address to the nation, had declared that high denomination notes of Rs 500 and Rs 1000 will no longer be legal tender from November 8-9 midnight. He had said the government has declared a "decisive war" against black money and corruption. (ANI)

'Impressed' cricketer Kohli hails demonetisation as 'greatest move in Indian politics'

Moody&#39;s Investors Service on Wednesday affirmed India&#39;s sovereign ratings, citing economic and institutional reforms under Prime Minister Narendra Modi, but said the measures have yet to produce enough dividends to warrant an upgrade.

Moody&#39;s becomes the second ratings agency after Standard &amp; Poor&#39;s to decline an upgrade to India&#39;s ratings despite government lobbying. Moody&#39;s rates India at &quot;Baa3&quot;, the lowest investment-grade rating, but with a &quot;positive&quot; outlook.

The credit agency welcomed economic and institutional reforms introduced under Modi, saying they &quot;offer a reasonable expectation that India&#39;s growth will outperform that of its peers over the medium term.&quot;

However, Moody&#39;s said &quot;the reform effort to date has not yet achieved the conditions that would support an upgrade,&quot; saying the country still needed to accelerate private investment in order to reduce the government&#39;s debt burden.

Since taking office in May 2014, Modi has taken a slew of measures to control inflation, revive investments and boost economic growth.

He has revamped the country&#39;s monetary policy framework, giving the Reserve Bank of India an explicit mandate to target inflation. He is also on track to roll out a goods and services tax next April that will transform the $2 trillion economy into a single customs union.

While India has emerged as the fastest growing major economy, those initiatives have not yet succeeded in convincing cautious companies to commit to fresh capital spending. Nor have they materially improved public finances.

Earlier this month, S&amp;P affirmed India&#39;s sovereign ratings, but ruled out any upgrade this year or in 2017 because of weak public finances and low per capita income.

S&amp;P&#39;s decision had caused disappointment within the Modi administration, which criticised it for not reflecting its efforts to improve economic growth and public finances.

(Reuters)

Moody's said India's ratings has declined 'Baa3', the lowest investment-grade rating but has a positive 'outlook'

Moody's Investors Service on Wednesday affirmed India's sovereign ratings, citing economic and institutional reforms under Prime Minister Narendra Modi, but said the measures have yet to produce enough dividends to warrant an upgrade. Moody's becomes the second ratings agency after Standard & Poor's to decline an upgrade to India's ratings despite government lobbying. Moody's rates India at "Baa3", the lowest investment-grade rating, but with a "positive" outlook. The credit agency welcomed economic and institutional reforms introduced under Modi, saying they "offer a reasonable expectation that India's growth will outperform that of its peers over the medium term." However, Moody's said "the reform effort to date has not yet achieved the conditions that would support an upgrade," saying the country still needed to accelerate private investment in order to reduce the government's debt burden. Since taking office in May 2014, Modi has taken a slew of measures to control inflation, revive investments and boost economic growth. He has revamped the country's monetary policy framework, giving the Reserve Bank of India an explicit mandate to target inflation. He is also on track to roll out a goods and services tax next April that will transform the $2 trillion economy into a single customs union. While India has emerged as the fastest growing major economy, those initiatives have not yet succeeded in convincing cautious companies to commit to fresh capital spending. Nor have they materially improved public finances. Earlier this month, S&P affirmed India's sovereign ratings, but ruled out any upgrade this year or in 2017 because of weak public finances and low per capita income. S&P's decision had caused disappointment within the Modi administration, which criticised it for not reflecting its efforts to improve economic growth and public finances. (Reuters)

Moody's affirms India's rating, says reforms yet to produce results

Vowing to deliver a corruption-free country to the people, Indian Prime Minster Narendra Modi on Sunday said the government will take action all &quot;benami&quot; property.

He asked the people to endure the temporary suffering due to a cash crunch in the cities after the government&#39;s announcement on November 8 to scrap RS 500 and Rs 1,000 currency notes.&nbsp;

&quot;I have more projects in mind to make India corruption-free. I request you all to cooperate with me for 50 days to ensure this,&quot; Modi said.&nbsp;

He told a gathering in the Indian state of Goa, &quot;It is for the first time Rs 67,000 crore in black money has been deposited under amnesty scheme and a total of Rs 1,25,000 crore has been deposited in government exchequer.&quot;

The Prime Minister made an emotional appeal to the&nbsp;nation to join him in &quot;bringing back any money that was looted in India and has left Indian shores. &quot;It is our duty to find out about it&quot;, adding that he had left his home and family and dedicated his entire life to work for the nation.&nbsp;

Asking people to keep faith in his fight against graft and black money, Modi said that demonetisation will prove to be a key step to help honest citizens. &quot;Previous governments have neglected this. Did I hide anything? This is a major step to eradicate graft and black money.&quot;

Modi said the entire &quot;secret operation involved ten months of work, printing new notes&quot;, which was finally announced on November 8.

(WION with inputs from PTI) 
&nbsp;

Defending his plan to free India of corruption, Narendra Modi asked the people to cooperate in the difficult phase of transition

Vowing to deliver a corruption-free country to the people, Indian Prime Minster Narendra Modi on Sunday said the government will take action all "benami" property. He asked the people to endure the temporary suffering due to a cash crunch in the cities after the government's announcement on November 8 to scrap RS 500 and Rs 1,000 currency notes. "I have more projects in mind to make India corruption-free. I request you all to cooperate with me for 50 days to ensure this," Modi said. He told a gathering in the Indian state of Goa, "It is for the first time Rs 67,000 crore in black money has been deposited under amnesty scheme and a total of Rs 1,25,000 crore has been deposited in government exchequer." The Prime Minister made an emotional appeal to the nation to join him in "bringing back any money that was looted in India and has left Indian shores. "It is our duty to find out about it", adding that he had left his home and family and dedicated his entire life to work for the nation. Asking people to keep faith in his fight against graft and black money, Modi said that demonetisation will prove to be a key step to help honest citizens. "Previous governments have neglected this. Did I hide anything? This is a major step to eradicate graft and black money." Modi said the entire "secret operation involved ten months of work, printing new notes", which was finally announced on November 8. (WION with inputs from PTI)

Indian PM on demonetisation: Promised corruption-free India, ready to face punishment if I committed mistake

The Reserve Bank of India (RBI) on Sunday urged the public&nbsp;to not hoard money following the government&#39;s decision to withdraw large denomination notes in an attempt to expose undeclared wealth.

With long queues outside banks across the country for exchanging 500 and 1,000 rupee notes that the government abolished in a decision made Tuesday evening, the government has urged people to&nbsp;keep calm.

The government also today announced that the cash withdrawal limit will now be increased from Rs 2,000 to Rs 2,500 per transaction.

The banned denominations made up more than 80 per cent of the currency in circulation, Reuters reported.

The RBI has, however, stated that small denomination currency notes were available with both the central bank and with other lenders and hence there was no reason to panic.

Meanwhile, Mamata Banerjee, chief minister of India&#39;s eastern state of West Bengal called the situation &quot;nothing short of an emergency&quot;.

&quot;I have never seen such a thing. People have money in their accounts but can&#39;t access it. They can&#39;t pay for treatment of a family member in hospital, weddings have been put on hold, daily business has taken a beating,&quot; Reuters reported her as saying.

Indian Prime Minister Narendra Modi&#39;s said that the move was also aimed at curbing illegal political donations that fund India&#39;s elections.

Current 500&nbsp;and 1,000-rupee notes can be redeemed at banks and post offices until December&nbsp;30.

(WION with inputs from Reuters)

Thousands of people were again standing outside banks across the country trying to change 500 and 1,000 rupee bills the government abolished

The Reserve Bank of India (RBI) on Sunday urged the public to not hoard money following the government's decision to withdraw large denomination notes in an attempt to expose undeclared wealth. With long queues outside banks across the country for exchanging 500 and 1,000 rupee notes that the government abolished in a decision made Tuesday evening, the government has urged people to keep calm. The government also today announced that the cash withdrawal limit will now be increased from Rs 2,000 to Rs 2,500 per transaction. The banned denominations made up more than 80 per cent of the currency in circulation, Reuters reported. The RBI has, however, stated that small denomination currency notes were available with both the central bank and with other lenders and hence there was no reason to panic. Meanwhile, Mamata Banerjee, chief minister of India's eastern state of West Bengal called the situation "nothing short of an emergency". "I have never seen such a thing. People have money in their accounts but can't access it. They can't pay for treatment of a family member in hospital, weddings have been put on hold, daily business has taken a beating," Reuters reported her as saying. Indian Prime Minister Narendra Modi's said that the move was also aimed at curbing illegal political donations that fund India's elections. Current 500 and 1,000-rupee notes can be redeemed at banks and post offices until December 30. (WION with inputs from Reuters)

No need to be anxious, enough cash available, assures RBI

India&#39;s ruling Bhartiya Janata Party&#39;s &nbsp;president Amit Shah on Friday launched a counter-attack on the opposition asking them to clarify whether they are &nbsp;for or against demonisation, saying that he questioned the political leaders&rsquo; commitment to do the same. He asked the opposition to clarify whether they were &quot;for or against black money and terror funded by fake notes&quot;. Shah specifically called out Delhi chief minister &nbsp;Arvind Kejriwal, saying, &ldquo;Arvind Kejriwal, make clear whether you support weeding out black money.&rdquo;

 
Attacking the West Bengal chief minister Mamata Banerjee, who called the demonetisation &ldquo;draconian&rdquo;, the BJP president said, &ldquo;I know Mamata Banerjee opposed the move, but politicians shouldn&rsquo;t join ranks of black marketeers, drug dealers who are upset.&rdquo;&nbsp;

 
However, contrary to this position, back in 2014, when &nbsp;the Congress led-United Progressive Alliance government had called in for demonetisation of currency notes issued before 2005, BJP had called it an&quot;anti-poor&quot; move which would badly affect the illiterate and poor living in remote areas of the country.

 
&quot;The latest gimmick of the finance ministry to demonetise the notes, printed before 2005, is an attempt to obfuscate the issue of black money stashed outside the country... This measure is strongly anti-poor. The &#39;aam aurats&#39; and the &#39;aadmis&#39; - those who are illiterate and have no access to banking facilities will be the ones to be hit by such diversionary measures,&quot;BJP spokesperson Meenakshi Lekhi had told the media in 2014.

 
65 per cent of people in India do not have bank accounts and are living in remote areas, they store their money in cash, she had said.

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&ldquo; They will fall victim to middlemen who will scare them that the notes are worthless and charge them hefty fees to convert them. They will also be ripped off by shopkeepers,&quot; the BJP leader had claimed.

Lekhi had went on to accuse the UPA government of not being in a position to measure the correct quantum of black money as those possessing it would convert them into new currency notes.

 
&nbsp;&quot;This policy of Mr P Chidambaram is only meant for the blue blood and not for the sweating, red-blooded, toiling millions. It is not going to affect those who have numbered accounts in Swiss accounts, but will hit those who do not have any bank account even in India.&quot;, she had said.&nbsp;

 
The step is not going to affect those who have their savings in US dollars and other foreign currencies, but those who have saved in rupees, Lekhi had said.

 
It is certain that in times to come, as the debate unfolds further, BJP will have a tough time in responding to those Indians who have been drastically hit by the move as alleged by the opposition parties.&nbsp;

 
(WION) 
&nbsp;

The party had opposed the very same move in January 2014 when a Congress-led government was in power

India's ruling Bhartiya Janata Party's president Amit Shah on Friday launched a counter-attack on the opposition asking them to clarify whether they are for or against demonisation, saying that he questioned the political leaders’ commitment to do the same. He asked the opposition to clarify whether they were "for or against black money and terror funded by fake notes". Shah specifically called out Delhi chief minister Arvind Kejriwal, saying, “Arvind Kejriwal, make clear whether you support weeding out black money.” Attacking the West Bengal chief minister Mamata Banerjee, who called the demonetisation “draconian”, the BJP president said, “I know Mamata Banerjee opposed the move, but politicians shouldn’t join ranks of black marketeers, drug dealers who are upset.” However, contrary to this position, back in 2014, when the Congress led-United Progressive Alliance government had called in for demonetisation of currency notes issued before 2005, BJP had called it an"anti-poor" move which would badly affect the illiterate and poor living in remote areas of the country. "The latest gimmick of the finance ministry to demonetise the notes, printed before 2005, is an attempt to obfuscate the issue of black money stashed outside the country... This measure is strongly anti-poor. The 'aam aurats' and the 'aadmis' - those who are illiterate and have no access to banking facilities will be the ones to be hit by such diversionary measures,"BJP spokesperson Meenakshi Lekhi had told the media in 2014. 65 per cent of people in India do not have bank accounts and are living in remote areas, they store their money in cash, she had said. “ They will fall victim to middlemen who will scare them that the notes are worthless and charge them hefty fees to convert them. They will also be ripped off by shopkeepers," the BJP leader had claimed. Lekhi had went on to accuse the UPA government of not being in a position to measure the correct quantum of black money as those possessing it would convert them into new currency notes. "This policy of Mr P Chidambaram is only meant for the blue blood and not for the sweating, red-blooded, toiling millions. It is not going to affect those who have numbered accounts in Swiss accounts, but will hit those who do not have any bank account even in India.", she had said. The step is not going to affect those who have their savings in US dollars and other foreign currencies, but those who have saved in rupees, Lekhi had said. It is certain that in times to come, as the debate unfolds further, BJP will have a tough time in responding to those Indians who have been drastically hit by the move as alleged by the opposition parties. (WION)

Demonetisation: BJP says good for economy now, but had opposed in 2014

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