Pre Demonetisation movements
Can local circles take this cause in? How can we ensure that political parties did not convert their black to white ahead of the announcement. Can all 500/1000 to 100 note changes in 2016 be studied as well. Below piece from blog of ET
The data shows a steep increase of Rs 4.8 lakh crore in bank deposits in September over the August figure. This spurt, ahead of the demonetisation of Rs 1,000 and Rs 500 notes announced on November 8, was not seasonal. It needs to be inquired into, to rid the demonetisation drive of a possible taint in the form of suspicion that some people took advantage of insider information. The Opposition is likely to point fingers at the ruling party but it would be strange, indeed, if those in the know of a move planned six months ahead waited till September to act. Information could have leaked out, if it did leak out, from the RBI or the printing presses. The matter calls for an explanation.
Initially, it had been suggested that the September surge was on account of disbursal of Pay Commission arrears. But that was only some Rs 34,000 crore. Spectrum auction proceeds accounted for another Rs 32,000 crore. Allow for some bunched subsidy payments. That would leave unexplained a jump in deposits of Rs 3 lakh crore. It is easy to establish if anyone took advantage of prior information of the demonetisation move and converted high-denomination notes into small-denomination ones. Look at the flow of big and small notes between the banks and the central bank in each of the major states over every quarter since April 2014. The RBI keeps track of this data. Former banker T R Ramaswami suggests, in a letter to the editor, an examination of the inflow of Rs 500 and Rs 1,000 notes into the RBI and the outflow of Rs 50 and Rs 100 notes from the central bank to banks for five six-month periods, starting April 2014. If there is any break, in the first half of the current fiscal year, in the pattern of flow of big notes into, and of small notes from, the central bank, it would indicate foul play. If the pattern is the same from April 2014 onwards, that would rule out mischief.
It would be in the government’s interest to initiate an inquiry on the above lines, without waiting for the Opposition to raise the demand, or for the judiciary to order one, in response to a public interest litigation. more
The data shows a steep increase of Rs 4.8 lakh crore in bank deposits in September over the August figure. This spurt, ahead of the demonetisation of Rs 1,000 and Rs 500 notes announced on November 8, was not seasonal. It needs to be inquired into, to rid the demonetisation drive of a possible taint in the form of suspicion that some people took advantage of insider information. The Opposition is likely to point fingers at the ruling party but it would be strange, indeed, if those in the know of a move planned six months ahead waited till September to act. Information could have leaked out, if it did leak out, from the RBI or the printing presses. The matter calls for an explanation.
Initially, it had been suggested that the September surge was on account of disbursal of Pay Commission arrears. But that was only some Rs 34,000 crore. Spectrum auction proceeds accounted for another Rs 32,000 crore. Allow for some bunched subsidy payments. That would leave unexplained a jump in deposits of Rs 3 lakh crore. It is easy to establish if anyone took advantage of prior information of the demonetisation move and converted high-denomination notes into small-denomination ones. Look at the flow of big and small notes between the banks and the central bank in each of the major states over every quarter since April 2014. The RBI keeps track of this data. Former banker T R Ramaswami suggests, in a letter to the editor, an examination of the inflow of Rs 500 and Rs 1,000 notes into the RBI and the outflow of Rs 50 and Rs 100 notes from the central bank to banks for five six-month periods, starting April 2014. If there is any break, in the first half of the current fiscal year, in the pattern of flow of big notes into, and of small notes from, the central bank, it would indicate foul play. If the pattern is the same from April 2014 onwards, that would rule out mischief.
It would be in the government’s interest to initiate an inquiry on the above lines, without waiting for the Opposition to raise the demand, or for the judiciary to order one, in response to a public interest litigation. more
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Present drive however did not have any impact on me I and my family of 4 only had one 1000 note and 24 Rs 500 notes for 4 SB accounts. I drew just 20000 once from my account for all 4 of us and being senior citizen I did not have to wait in que. Hope PM will do some thing that will not trouble small people. more
Nov 28
BJP led by the PM may be doing a drama to win next election. It also shows Congress with century of experience do not have the machinery of its own to unearth political frauds and investigate privately what is really happening inside the government and expose BJP if they are doing anything wrong. The recent jail break and catching Singh may also be a drama In Politics any thing can happens and our countrymen can stoop to any level just to remain in power. Most of the deposits/encashments as well as the earlier IT declarations are black money only as per legal definition but not in real sense. It is actually the hard earned money of common man who might have invested it in real estate and later sold properties and received part of the money in cash. You can not call it black money. After all who fixes guidance value it is the same government run by the corrupt politicians. When the market rates are 2-3 times the guidance value what option the seller has? Even the buyer many a times gives his white money in cash. The seller reinvests such money both black and white in real estate some in white and gets exemption from capital gain tax and some in cash to decorate his house with items which he never wants. There are plenty of items in market to buy and when you have no other options to spend it you are likely to spend it on luxurious goods, marriages and so on. Who is responsible for it? It is the Government. If only the government reduces stamp duty and registration fee then people would be willing to register at market value. At present when one builds a house he pays up to 7% of cost or Rs 150/sft to the architect/engineers, up to 20% to contractors (Service tax, Income tax and profit margin), 2.5% towards permissions and licenses and 0.5% towards unnecessary running around. Total 30% is wasteful expenditure. on the top of it one has to spend on borewell and pumps (Since water is not supplied even after 10 years of forming a layout), water harvesting system, solar water heater etc. When Government encroaches misuse water bodies, and allows rain water falling on the road to flow out to river and to sea we have to keep quite. Mr PM whom are you catching and troubling in the name of unearthing black money? It is this kind of people and not the big people who have real ill gotten money. Why did not you order conduct of raids on politicians, political parties, government servants and bif businessmen? Are you scared of them? more
Nov 28
Some people had correctly inferred that something like demonetisation was in the pipeline, from the various measures like Jan Dhan, Gas subsidy into accounts, Tax amnesty by paying 45% etc upto 30 Sept, where the earliest implementation could have been post 1 Oct. So a lot of money came in as deposits in September. Since nothing happened in October there was some complacency and the deposits dried up. Then, out of the blue, Nov 8 happened. Personally, I do not think there is any conspiracy or leaks behind this. A whole lot of disgruntled folks who thought it was just another tax amnesty scheme, among the many which had taken place earlier retained their black money, to their regret. I am inclined to believe that these people are the ones making such comments. more
Nov 28
I feel no need to go behind such things in September if I remember the open declaration schemes were going on? Secondly People in power do try to keep secrets but not in power do have their control particularly who have recently gone out of power. The reason behind resignation of RBI Gov was difference in Govt and his decision on implementing this scheme and who does not know that he was highly obliged to congress for favours to him. He was the first RBI Governer to came in public for various issues and congress did make statements that his resigning was loss to country etc more
Nov 28
