Even as naysayers criticise every move of the Government, the fact remains that the Prime Minister has been dynamic, he has changed policies and stymied all the ways and means that the corrupt can possibly think of
According to the oxford dictionary, the word demonetisation (verb) is the act of divesting a monetary standard of value. On November 8, Prime Minister Narendra Modi divested the monetary standard of Rs500 and Rs1,000 notes that comprised about 86 per cent of the total money in circulation in the economy, to fight counterfeiting of notes, terrorism and black money.
Undoubtedly, the Prime Minister’s demonetisation move received an overwhelming support, especially from the middle class, which is now feeling that corruption, harassment and oppression are no longer there, for now the winds of change have started blowing strong.
Introspection is in order to see the objectives laid down by the Government and whether these are being met and if it is, to what extent.
According to updated data as on December 22, by the Reserve Bank of India (RBI), “The incidence of fake Indian currency in higher denomination has increased.” Further, “High denomination notes have been misused by terrorists for hoarding black money”. A layperson like me, on reading the above, which incidentally is the opening paragraph of the FAQ’s referenced above, would naturally ask an obvious question: If high denomination notes have been misused by terrorists for hoarding black money, how does introducing a higher currency note remedy this situationIJ
The RBI’s statement of high currency notes being misused by terrorists and then promptly introducing an even higher currency note, requires probably an even more analytical approach than this article would be delving in. On the face of it, the moves as well as the motive behind it seem to be at odds with one another.
Notwithstanding that, the RBI has ensured that there is sufficient liquidity infused into the system. Money supply in India decreased to approximately Rs12,3767.67 billion in November, from approximately Rs12,3931.54 billion in October this year. This leads to a shortfall of Rs163.87 billion. In order to put things in perspective, considering a population of 1.31 billion for our country, the per capita money supply has only fallen to Rs94,479.14 from Rs94,604.23 in November from October this year.
Prime Minister Narendra Modi rightly said in his November 14 address in Ghazipur that there was no shortage of money in India, the problem lies where the money is.
According to a study by Ambit capital, India’s economy is pegged to be around Rs30 lakh crore, which is larger than the stated gross domestic product (GDP) of countries like Thailand and Argentina.The Central Board of Direct Taxes (CBDT) had in April made public an 84-page document, clearly detailing in a very transparent manner, the taxpaying data for the last 15 years.
The report clearly states that only one per cent of the total Indian population paid tax for assessment year 2012-13. That one per cent paying taxes may not necessarily be those in the highest income bracket, the creamy layer. It is the top one per cent by way of earning capacity of our country that is responsible for most of the black money in this country. This top one per cent, a heady mix of politicians, industrialists and bureaucrats, are further aided by corrupt bank officials who are motivated by their greed to find ways and means to circumvent the law in exchange for their petty personal gains.
After this brave game changing announcement, the IT department conducted 760 raids across the country. More than Rs3,590 crore of undisclosed income has now come under the scanner and some 3,589 notices have been issued. Corrupt bank and Government officials have been found to be allegedly aiding and abetting black money launderers for a certain percentage of the total corpus to be laundered. Such flagrant disregard for rules and an assurance of zero consequences or hardly any consequential outcomes prompt those of inferior moral fibre to make such shady deals.
The rash of raids that have been conducted across the country and hundreds of crores of rupees of the new currency being unearthed consequently, only prove that this Government is prepared to do what it takes and is weeding out the corrupt on a battle footing with all the arms of the law — be it the Income Tax department, the Enforcement Directorate — all are moving in tandem to snuff out the corrupt. The twisted amongst us see this move as yet another way to make a mockery of the whole process by casually referring to a “connection” they have in a bank who has taken care of everything for them.
A case in point is the report on two PWD officials, SC Jayachandra, Chief Planning Officer of State Highway Development Project, PWD, and TN Chikkarayappa, Managing Director of Cauvery Neeravari Nigam ltd, who have been suspended on alleged charges of corruption.
According to the Income Tax department, unaccounted assets seized from the officials and their aides stood at Rs152 crore. In 2008, the lokayukta had raided Jayachandra and seized undeclared assets. He was then suspended for a month. His son Trijesh Jayachandra, in 2010, almost ran over a traffic constable in an allegedly drunken state. The IT raids from which money, bullion of seven kilogramme and nine kilogramme of jewellery were recovered, were held at Trijesh’s residence.
The laws of our country, seem to look the other way when corruption is stemming from officials in high places. The time has come to adopt a zero tolerance policy towards corruption. Three strikes and you are out. Suspensions for a Government official are just a way for the attention to die down from the person, then they are reinstated into their jobs, albeit in a different location maybe geographically or departmentally.
To the naysayers who would fault and criticise any and every move, the retort is simple. It’s a start. And the Prime Minister has been dynamic, changed policies and stymied all the ways and means that the corrupt can possibly think of to extricate themselves from this sticky situation.
This dynamism should trickle down to the other branches of the Government who could take a leaf out of their leaders book, and enforce the laws and punish those who are guilty with all the might of the Government. That is the need of the hour. That retribution should be swift and merciless.
It’s time we all did something and not just stand on the sidelines. As Albert Einstein said, “The world will not be destroyed by those who do evil, but by those who watch without doing anything.”
(The writer is former Director, Central Bureau of Investigation)