The document discusses black money in India, including its sources, movement, and impact. It states that India has more undeclared black money stored in Swiss banks than any other country, totaling an estimated $1,456 billion. It identifies major sources of black money as gambling, real estate undervaluation, false income statements, drug trafficking, and other illegal activities. Common methods of moving black money include India's hawala system and storing funds in Swiss bank accounts. The consequences of black money include increased poverty, inflation, and reduced economic development. The document advocates for measures like amnesty schemes, tax reform, technology use, and international cooperation to help reduce the generation of black money.
2. What is ‘Black Money’?
Black money is:
the currency used in ‘black economy’.
the proceeds, usually received in cash, from underground
economic activity.
earned through illegal activity and, as such, is not taxed.
Fact: Once the huge amount of black money and property comes back to
India , the entire foreign debt can be repaid in 24 hours.
3. Sources of ‘Black Money’.
Gambling
Undervaluation of Asset and Over Valuation of Liabilities
False Income Statement
Drug trafficking
Weapons trading
Terrorism
Prostitution
Selling counterfeit or stolen goods
Selling pirated versions of copyrighted items such as software and
musical recordings and
Through any other act forbidden by law.
Fact: After paying the entire foreign debt from retained black money, we
will have surplus amount, almost 12 times larger than the foreign debt.
4. Movement of ‘Black Money’.
To be at a safer side the recipients of the black
money moves their black income by using the
following two sources:
By Hawala system.
Depositing in Swiss Bank.
Fact: If the surplus amount after retaining the black money is invested,
the amount of interest earned will be more than the annual budget of the
Central government.
5. Hawala System.
Hawala:
also known as hundi
origins in classical Islamic law
an informal value transfer system
based on the performance and honour of a huge network of
money brokers.
no promissory instrument
Fact: After retaining black money even if all the taxes are abolished, then
also the Central government will be able to maintain the country very
comfortably.
6. Swiss Bank.
1854 - Swiss Bank Corporation(SBC).
3rd largest in Switzerland with over 300
billion CHF(Converted Swiss Francs) of assets
and 11.7 billion CHF of equity.
1998 - SBC merged with UBS, the largest bank
in Europe and the 2nd largest bank in the
world.
The company's logo - three keys -
Fact: If the black money is retained the Government will have enough
money to run the country for 30 years.
7. ‘Black money’ and Corruption.
Black money & Corruption are two
sides of the same coin.
Dishonest Industrialists, Scandalous
Politicians and corrupt officials
have deposited in foreign banks in
their illegal personal accounts a
sum of about $1500 billion.
Fact: If the total Black Money is recovered then every Indian can have
one Tata Nano car and every new born baby can be gifted with the same
for next 1 year.
8. Top 5 countries generating ‘Black Money’.
INDIA $1,456 BILLION (NEARLY 76,00,000/- CRORES)
RUSSIA $470 BILLION
U.K. $390 BILLION
UKRAINE $100 BILLION
CHINA $96 BILLION
Fact: If black money is brought home and added to our GDP of Rs 55 lakh crore our new
GDP would become Rs 363 lakh crore, we will become No. 2 after USA in terms of GDP.
9. Total ‘Black Money’ in economy?
Swiss bank revealed India has more
money than rest of the world.
The second highest, Russia has 4 times
lesser black money as compared to
India.
U.S. is not even there in the counting
in top
five.
India has more money in Swiss banks
than all the other countries combined.
10. Top 5 scams in India.
•2G Spectrum Scam.
•Commonwealth Games Scam.
•Telgi Scam.
•Satyam Scam.
•IPL Scam.
11. 2G Spectrum Scam.
• Known as India’s
biggest scam.
• Person responsible
was telecom
minister Mr. A. Raja.
• Evaded norms at
every level and gave
fictitious licenses.
• Amount involved in
the scam: 1.76 lakh
crores.
Commonwealth
Games Scam.
• Indians hang their
head in shame on
global front.
Revelations by the
Central vigilance
council:
• Discrepancies in
tenders.
• Payments to non-
existing parties.
• Willful delays in
execution of
contracts.
• Over inflating price
of sports
equipment.
• Misappropriation of
funds.
• Person responsible:
Mr. Suresh Kalmadi.
• Amount involved in
the scam: Rs. 35000
crore.
Telgi Scam.
• Abdul Karim Telgi
mastered the art of
preparing fake
stamp papers.
• Sold them to various
banks and other
financial
institutions.
• These stamps were
sold across 12
states.
• Various government
departments were
involved in the
scam.
• Person responsible:
Abdul Karim Telgi.
• Amount involved in
the scam: Rs. 20000
crore.
Satyam Scam.
• The scam that
shattered the
investors:
• The books of
accounts were
fudged.
• Scam took place for
more than a
decade.
• Revenues and profits
were inflated.
• Shareholders were
kept in the dark.
• Biggest corporate
fraud.
• Person responsible :
Mr. Ramalingam
Raju.
• Amount involved:
Rs. 14000 crore.
IPL Scam.
• The Shame behind
entertainment:
• The Indian Premiere
League(IPL) was
considered as the
best form of
entertainment in
the country.
• But slowly its darker
side emerged.
• IPL commissioner Mr.
Lalit Modi and
external affairs
minister Mr. Shashi
Tharoor were the
persons involved.
• Claimed to have
stakes in many IPL
teams.
12. High rates of taxes.
Complicated Tax-laws.
Numerous controls, licenses and other
governmental regulations.
Lack of control by the government.
Lack of awareness among public.
Major reasons for generation of ‘Black
Money’.
Fact:
Fact: Total black money of Indians in other tax haven countries (60 countries) is Rs 158
lakh crore. total black money of Indians outside India (100+158) is Rs 258 lakh crore.
13. Consequences of ‘Black Money’.
Poverty.
Inflation.
Reduces Development.
Illegal transfer of funds from India to other countries.
Fact: In India more than 450 million people live below the poverty line.
14. Amnesty Scheme by the govt.
Simplify/Rationalize tax laws.
Reduce red tapism.
Use technology for economic intelligence.
Co-ordination with other countries.
Stringent laws to curb money laundering/corruption.
Creation of awareness among students on the evil of black money.
Regulation on election spendings and donation to political parties/
organizations.
Measures to be taken to reduce ‘Black
Money’.
Fact: Every year almost 80000 people travels Switzerland. Out of these
around 25000 travels frequently. Those who travel frequently might be
travelling for some reasons, this should be investigated.
15. Conclusions.
Black money has created a big black hole in Indian economy & the entire
burden is beared by the common people of India.
To stop corruption which creates black money, we the people of India have
to come forward to fight against corruption.
