OLD 500 and 1000 Rupees Notes
This new adventure brings in some questions for thought:
1. What is black money? Money kept in cupboard is not black. Money saved by farmers is not black. Money saved by house wife for contingency / emergencies is not black. Money kept by a business man for any specific purpose is also not black. Money kept by all men or women in their purses, cupboards, trunks or any where for that matter is also not black.
2. Money is black, provided it is earned by any means and necessary tax is not paid. Quite often in our country even this is not black as long as the money earned is less than the taxable income. Majority of small shopkeepers, vendors, service providers, farmers will fall in this category.
3. The black money is expected to be with:
Politicians
Public servants who are involved in corruption, Tax collections, Excise, Sales Tax collections etc
Policemen, Corporation's employees, Government Employees, Railway conductors; all those who are directly involved in Public service.
Business men, shopkeepers doing well.
Professionals, like Advocates, Tax consultants,Doctors, C.A's, Consultants, Commission Agents, Architects, Builders,
Directors of companies.
All these put together, holding 95% of Black Money may not be more than 0.5% of the population.
Since all of them are tied up together, they all turn a blind eye to each other and every one protects the other; like an advocate protects the politicians, CA look after the business men etc etc. Majority of these professionals also work under one or the other oath, yet this reality.
4. In order to collectively take action, 100% population has been affected. Now these very intelligent personalities will find alternatives with in the rules and probably 80% will get away with their collections. Majority of business houses may have less in cash and more in stocks or assets of some type or the other.
5. The poor, illiterate, villagers, ladies, small shop keepers, senior citizens, farmers, broken families will loose their small money by default. The society that should be protected will suffer. The Governance is at Question Mark? Please protect the poor as much as you can.
6. The impact on the society; the public will loose faith in Government and instead of keeping cash, they may prefer to keep Gold or Other assets.
7. Further Analysis, some had made money by unfair means, corruption. Majority of this may be in cash.
Some have made money by working hard and have not paid taxes. Majority of this may be in stocks and assets. Some of this may in business, providing employments to others. e.g. More stocks, more sales people, more production people employed. By taking a drastic step are you not cutting off these valuable employments? Look at tiny, small sector, yet very productive and efficient and employment Generation Sector. A shop/small manufacturing unit may employ several people.
A decision is made, the results will be known in due course of time.
8. Now that the decision is made and the value of money will increase in the eyes of people, since it will not be available freely.
It will not be a bad idea to Make the Indian Currency Freely trade-able in the International Market.
The value of rupee will improve. Not only this, in all probability, the exports will also grow. Simply because, a good business is not done only at low prices. Good business is done with better sales follow up. At today's exchange rate ordinarily, small business man can not travel simply because he needs to pay 67 times more from his business contribution. This is very high and unproductive from business travel point of view. Our currency is not valued well. Indians, since while traveling abroad are dependent on other's favors are not respected at par with foreigner's status. Other wise, in which country you can get a cup of tea with milk and sugar at Rupees Five only? If its purchasing value is good, why it should not be priced well.
9. My gut feeling is that small people may suffer a lot and many may loose jobs. Government needs to be watchful. In-fact society at large needs to be watchful as well.
10. No, this is not the way to conduct good business. We should have the courage to punish the guilty only. Good governance will not punish the poor and public at large and make them poorer.
These are my personal views. more
1. What is black money? Money kept in cupboard is not black. Money saved by farmers is not black. Money saved by house wife for contingency / emergencies is not black. Money kept by a business man for any specific purpose is also not black. Money kept by all men or women in their purses, cupboards, trunks or any where for that matter is also not black.
2. Money is black, provided it is earned by any means and necessary tax is not paid. Quite often in our country even this is not black as long as the money earned is less than the taxable income. Majority of small shopkeepers, vendors, service providers, farmers will fall in this category.
3. The black money is expected to be with:
Politicians
Public servants who are involved in corruption, Tax collections, Excise, Sales Tax collections etc
Policemen, Corporation's employees, Government Employees, Railway conductors; all those who are directly involved in Public service.
Business men, shopkeepers doing well.
Professionals, like Advocates, Tax consultants,Doctors, C.A's, Consultants, Commission Agents, Architects, Builders,
Directors of companies.
All these put together, holding 95% of Black Money may not be more than 0.5% of the population.
Since all of them are tied up together, they all turn a blind eye to each other and every one protects the other; like an advocate protects the politicians, CA look after the business men etc etc. Majority of these professionals also work under one or the other oath, yet this reality.
4. In order to collectively take action, 100% population has been affected. Now these very intelligent personalities will find alternatives with in the rules and probably 80% will get away with their collections. Majority of business houses may have less in cash and more in stocks or assets of some type or the other.
5. The poor, illiterate, villagers, ladies, small shop keepers, senior citizens, farmers, broken families will loose their small money by default. The society that should be protected will suffer. The Governance is at Question Mark? Please protect the poor as much as you can.
6. The impact on the society; the public will loose faith in Government and instead of keeping cash, they may prefer to keep Gold or Other assets.
7. Further Analysis, some had made money by unfair means, corruption. Majority of this may be in cash.
Some have made money by working hard and have not paid taxes. Majority of this may be in stocks and assets. Some of this may in business, providing employments to others. e.g. More stocks, more sales people, more production people employed. By taking a drastic step are you not cutting off these valuable employments? Look at tiny, small sector, yet very productive and efficient and employment Generation Sector. A shop/small manufacturing unit may employ several people.
A decision is made, the results will be known in due course of time.
8. Now that the decision is made and the value of money will increase in the eyes of people, since it will not be available freely.
It will not be a bad idea to Make the Indian Currency Freely trade-able in the International Market.
The value of rupee will improve. Not only this, in all probability, the exports will also grow. Simply because, a good business is not done only at low prices. Good business is done with better sales follow up. At today's exchange rate ordinarily, small business man can not travel simply because he needs to pay 67 times more from his business contribution. This is very high and unproductive from business travel point of view. Our currency is not valued well. Indians, since while traveling abroad are dependent on other's favors are not respected at par with foreigner's status. Other wise, in which country you can get a cup of tea with milk and sugar at Rupees Five only? If its purchasing value is good, why it should not be priced well.
9. My gut feeling is that small people may suffer a lot and many may loose jobs. Government needs to be watchful. In-fact society at large needs to be watchful as well.
10. No, this is not the way to conduct good business. We should have the courage to punish the guilty only. Good governance will not punish the poor and public at large and make them poorer.
These are my personal views. more
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Thank you all for responding. First of all I am with you all to root out corruption. There is no second thought. I have and I am also facing the consequences. While doing business with OIL COMPANIES, on receipt of their valid Project Authority Certificates, we have given excise concessions to Government of India Companies, completely in line with the Government of India policy. I have been charged to pay Excise Duty with penalty and interests, in-spite of producing all documents. The matter has been taken up in Petroleum Ministry, Finance Ministry, Commerce Ministry, Law Ministry and also with The Honorable Prime Minister's office. The matter has gone through High Courts and to The Supreme Courts and is again pending, currently in The Mumbai High court. I feel ashamed, when I saw The Honorable Supreme Court Judge; who subsequently became a Chief Justice of India, laughed at my cost, simply because I was a business man and as per his thinking all business men are supposed to be flushed with money and 35 lakhs is a small amount to deposit and seek justice. The High Court as well as the Supreme Court did not even look at the merit. I am still suffering. In-spite of having merit on my side, what I have been able to do? I have only spent money on advocates, running around instead of concentrating on my business. This is how the small Indian Companies Fail and economy suffers. Has any one questioned the involved Government Personnel; why all this; and has even been bothered to identify the guilty and punish? No, the government needs to be Citizens Friendly and not employee friendly. You may not agree but in my career span of almost 50 years, I have seen Government more corrupt than the people of this country. more
Nov 18
Thank you all for responding and your support. This encourages me to take the matter further.
Subsequent to my above write up I had taken the liberty to write to the Honorable Prime Minister, The president and also the the Chief Justice Supreme court and the Chief Justice Mumbai High court.
I am not sure weather my letter has been read by all authorities or not?
My matter is pending in Mumbai High Court and has not come on board as yet. Possibly the letter had little impact.
However, i am sure even the President should stand by me simply because he himself was either Finance Minister or a Commerce minister and has been directly involved in making the policy for OIL and Gas sector.
We all look forward to decency from all above senior positions.
Thank you all once again. more
Subsequent to my above write up I had taken the liberty to write to the Honorable Prime Minister, The president and also the the Chief Justice Supreme court and the Chief Justice Mumbai High court.
I am not sure weather my letter has been read by all authorities or not?
My matter is pending in Mumbai High Court and has not come on board as yet. Possibly the letter had little impact.
However, i am sure even the President should stand by me simply because he himself was either Finance Minister or a Commerce minister and has been directly involved in making the policy for OIL and Gas sector.
We all look forward to decency from all above senior positions.
Thank you all once again. more
Jun 09
It is great idea to reform the system. but necessary steps can be iniated in advance without announcing the intension to any one. There are good steps taken by govt. 1. system of judges appointments. present govt do not have majority in the houses to bring the change in the procedure of appointments. it may get the mojority with some if and but after a year or so. why should common man suffer till that time . let the present system continue till we are able to bring changes.when we can wait decades we can wait a year with the present system. courts are working with 50% strength. It may be brighter tomorrow but we can avoid dark to the present day more
Nov 14
I hardly believe any true national of this vast country shall subscribe to your views. If we want to root out corruption it can be removed through bold steps of this government only. Definitely we all are facing trouble but we need courage to face it. Can you imagine the marriage of my niece was due on 11th at Patiala. We were there since 8th, the day when the news broke out. We had all cash but managed every thing nicely. We have no complaint. We highly appreciate the decision of our PM who is the first PM who is taking steps to clean the system and second bold PM after Indira Gandhi. Have patience country needs it most for better future. SK Mathur more
Nov 13
