"BAIL IN" ~ A Royal Licence for Organised Loot & Legalised Plunder of Public Sweat

The Government of India cannot afford to indulge into issuing a FREE FOR ALL  Licence to the Banking Industry, for allowing
¥ organised loot of public funds,
¥ legalised plunder of the hard earned money of the common man, and
¥ systematic embezzlement of the only savings carried by the common masses for their ripe age , that too without taking permission from the respective subscribers  of those deposits with The Banks.

But why does the #Government of #India need to engineer this criminal game of "MONEY LAUNDERING" of the public funds.

Friends, it is with the noble idea, only to systematically cover up the huge losses incurred by the #Banking #Industry on account of Monumental Mismanagement of the Institution of Banking during the past four decades.

If implemented with an iron hand,
~ It will be the cruel homicide of the manifestation of the values of the sweat and blood of the innocent subscriber of deposits with the 🏦 #Banks...,
~ it will be undermining the commercial value of the immortal sacrifices made by the common masses to build their savings....,
~ it will amount to decimating the blind faith the common masses have imposed time and again in our Banking system; and
~ above all it will be the complete annihilation of the love and belongingness they nurture in the core of their heart towards the Nation as a whole...!!
~ These very factors are also applicable towards all those who have left their hearth and homes to earn their bread and butter in foreign lands (NRIs); but have not lost the faith and love they conjure still in their heart for their motherland; hence they continue to transfer the values of their respective sacrifices implored to earn hard earned money (far away from their motherland), and transfer the same back to the Banks belonging to their Motherland.

The Government of India has no ethical, legal or commercial right to swallow the hard earned money of the honest 98% of the population to just take care of the balance 0.5% of the population that are corrupt, dishonest and inefficient.

Yes, "BAIL IN", is a good thought Process, but needs effective transparency in its logical implementation. It needs to be implemented logically on to the real culprits who are basically responsible for such Monumental Mismanagement of public funds, without any kind of accountability and responsibility.

Effective and justified management of this thought process will not only help in building faith and trust in our Banking Industry who are basically the "CUSTODIANS" of the public funds. Any custodian doesn't have the legal or ethical right to penalize the innocent subscriber of deposits to the Institution of Banking Industry for the failures of the Custodian to recover #NPAs from their genuine  beneficiaries...!???!!!

Now let us identify as to who are the individuals responsible for the creation of the huge volumes of NPAs in the Banking Industry in our country, that lead to this kind of grave financial crime of  Monumental Mismanagement of the #Public #Funds. They are the beneficiaries of the Loans granted by the Management of the Banks to the individuals and entities belonging to Institution of Business and Industry, but in turn these beneficiaries failed to return their Loans in time along with interest as per norms....!

 The real beneficiaries of these loans are :

(1) The Politicians who send their letters of recommendation to the responsible authorities in the Banking Industry with instructions to issue huge Loans to the big cheats cultured by the business class. Legally speaking those letters of recommendation are the Affidavits of the Guarantee they issue to the Banks because certainly they would have been buttered with some benefits in exchange only as to issue such instructions.

(2) The Chain of the Top Management of the Banks who sign to the Papers of those bad Loans because it's they who are supposed to be responsible for issuing the Loans to these  deceptive customers.

(3) The real beneficiaries of those Bank loans who are basically the individuals belonging to the Institution of Business and Industry and are definitely responsible to deliver back to the Banks with the BAIL IN amounts towards the NPAs thus created.

Next logical question arises as to how to recover compensation for the creation of the NPAs of the Banks :

As the Government of India and the Reserve Bank of India stand as Guarantors to the effective functionality of the Banks, hence the Government of India as per the Constitution of India already deserves the right to recover the money against NPAs from the beneficiaries of the Loans by following these steps of "#BAIL #IN" and reset the Banks back into healthy positions of efficient governance and transparency in management of public funds. To recover these funds from the beneficiaries, the Government of India needs to take the following steps:

(1) Freeze all the Assets, tangible as well as intangible, of all those politicians, if any who have indiscriminately issued letters of intent to the authorities in the Banking Industry to issue huge loans without bothering about the credibility of the beneficiaries of the Loans that have later turned into NPAs...

(2) Initially suspend all the authorities in the Banking Industry who have signed the requisite lease agreement papers of the Loans granted to the effective beneficiaries of the Loans. Stop their salaries. Freeze all their tangible and intangible assets.

(3) Finally, Just freeze all the tangible and intangible assets of the beneficiaries of the bad Loans who belong to the business class, till the "TOTAL AMOUNT DUE" is recovered from them as per the final proceedures laid out below.

The next step will be to determine as to in what proportion the Banks should restructure the process of recovery of the Loans to effectively and judicially recover the "Total Amount", due to the Banks along with Interest from the respective beneficiaries of the creators of NPAs :

(1) At the outset, Debit 21% of the "Total Amount", due to the Banks in each individual case, first to the Politicians if any who have been responsible for issuing instructions to the Banks to issue the Required Loans to the specified Individuals. In order to recover these funds priority should be given to first resell their tangible assets and then touch their intangible assets.

(2) Next Debit 15 % of the "Total Amount" due to the Banks in each individual case, to the learned Managers of the Banks, who have been responsible for passing the Loan Amount to the specified defaulters. In order to recover these funds priority should be given to first resell their tangible assets and then touch their intangible assets. If required, Freeze the Pension benefits of any of the retired employees involved in the whole process.

(3) Debit the balance 64 % of the "Total Amount" due to the Banks in each individual case to the actual Defaulters of the Banks, who have failed in their attempt to return the amount due along with the Interest. In order to recover these funds priority should be given to resell their Tangible assets first and then touch their intangible assets.

(4) In case there's no Politician involved in the process, then the Bank Management will be debited with 21% of the amount and the balance 79% to be recovered from the real beneficiaries/ Defaulters.

(5) In case of the Death of the Politicians and Bank Managers responsible in the process, the "TOTAL AMOUNT DUE ", should be recovered from the respective Defaulters.

(6) In case of the total failures of the real Beneficiaries/Defaulters having gone really bankrupt, the onus of responsibility will fall first on the two Gaurantors who have signed the loan documents, then the Politicians and lastly the Bank Managers responsible, In proportion of 65 : 20 : 15 % of the "TOTAL AMOUNT DUE", from the respective Defaulters.

If this process of "BAIL IN" is adopted then not only will the total NPAs be recovered within a maximum period of two to three years but also make the management of the Banking Industry more transparent and trustworthy.
It will wipe out corruption from the Banking Industry.
It will build the confidence of the subscribers of deposits.
It will enhance the confidence of the NRIs in the efficiency of the Indian Banking Industry.
It will make the working of the Banks more professional and reliable.
The value of the Indian Rupee will increase in the International Market.

Hence the Minister of Finance needs to relook into the methodology of the process of "BAIL IN" Of the Banks as per the justified methodology enumerated above.

If you feel that you are one of the potential culprits of the Government's policy of "BAIL IN" of the Inefficient management of the Banking Industry then please sign this petition in the interest of nation from Corrupt and deceptive business class...


https://www.change.org/p/arun-jaitley-do-not-use-innocent-depositors-money-to-bail-in-mismanaged-banks-nobailin




file:///storage/emulated/0/Download/jJFIGRybOeSQmtR-800x450-noPad%20(1).jpg

Demonitization Drive 2016 ~ A Brief Review

It was on 8^th November 2016 , the Government of India decided to cancel the Legal Tender Status of Rs.1000 and Rs.500 denomination currency notes that were in use till that date with several objectives in mind:

(i)                          Flushing out black money, 

(ii)                      Eliminate Fake Indian Currency Notes (FICN). 

(iii)                   To strike at the root of financing of terrorism and left wing extremism. 

(iv)                   To convert non-formal economy into a formal economy to expand tax base and employment and 

(v)                       To give a big boost to digitalization of payments to make India a less cash economy.

The Government of India definitely took a very bold step of demonetizing the existing denominations of Rs.500 and Rs.1000 notes which were in fact 85% of the total notes in circulation at that time. These denominations were very convenient tools of transactions for Money launderers, Hawala operators, Real Estate developers, Economic criminals, corrupt politicians and Officials, Industrialists and Traders, Terrorist organizations and other International criminals, in an informal economy. On the other hand the enemies of the nation were actively planning, as per the reports of the Intelligence agencies, to completely ransack the potential booming economy by dumping of the fake currency mainly in these two denominations in very huge quantities, quietly into the Indian economy.

However, our alert administration of the Government did not waste time in sensing the hostile threat that would have completely crashed the Economy, and hence decided to plug out the very Instruments of Trouble from the circulation before it was too late. 

The Revolutionary implementation of “The #DemonitizationDrive2016” was a very painful inoculation for the common masses as well as the business class. But looking to the dangers, internal as well as external, looming heavily on the horizon of the fourth biggest economy of the world, all those who loved the nation and were more concerned about the security threat to our economy, patiently waited thru the whole operation, for the positive outcome. 

Lot of commentaries have been relayed both within and without the four walls of the Parliament as well as thru the electronic & print media operated by the fourth estate and on the social media, by leading experts. They all have been debating and forecasting a lot of wild issues and glitches, hitches and complications that the economy could face with the implementation of the highly risky drive for Demonetization.

Let us now make a humble effort to analyze ~ how and where the currency has traveled in the past few months, a critical analysis:

The Reserve Bank of India (RBI) has reported in their Annual Accounts that Specified Bank Notes (SBNs) of estimated value of Rs. 15.28 lakh Crores have been deposited back as on 30.6.2017.  

The outstanding SBNs as on 8^thNovember, 2016 were of Rs. 15.44 Crores value. 

The total currency in circulation of all denominations as on 8^th November, 2016 was 17.77 lakh Crores whereas total currency in circulation as on 4^th August, 2017 was 14.75 lakh Crores. 

The Government had expected all the SBNs to come back to the Banking system to become effectively usable currency. 

 The fact that bulk of SBNs have come back to the Banking system shows that the banking system and the RBI were able to effectively respond to the challenge of collecting such a large number of SBNs in a limited time.  

At the same time, the effective currency in circulation today is only 83% with full circle of re-monetization having taken place.

Part I:

Resultant Positive Impacts :

(1) Just 56 Lac new Tax Payers have been added to the elite list (Otherwise it would have taken another decade or more to add that many subscribers). As per report of the RBI the number of Returns filed as on 05.08.2017 registered an increase of 24.7% compared to a growth rate of 9.9% in the previous year

(2) Just 2 Lac Shell Companies have been identified. (So many firebrand centers of Black money generation have been clamped down for future)

(3) Cash Circulation down by 17%.

(4) Hawala Racket has been brought under terrible psychological pressure..., with the identification of many economic criminals.

(5) Dumping of fake currency from enemy nations brought to a complete sudden halt...!

"FAKE AND COUNTERFEIT CURRENCY IS DESTROYED TO THE TUNE OF 23 LAC CRORES .... This happened because fake and counterfeit currency could not have been deposited in banks for obvious reasons."

(6) Terrorism clamped under the belt without using a single bullet...!!

(7) Corrupt Officials in the Banking and other sectors also identified

(8) Necessary regulations have been clamped on the functioning of the Chartered Accountants as they had been the main source of trouble shooting equipment that encouraged the economic criminals of all hues and cries to continue with their past-time without hindrance. They have been made to understand their sense of responsibility towards the nation.

(9) The common masses have now appreciated the ease in handling and comforts of the Cash-less economy. 

(10) A significant portion of SBNs deposited could possibly be representing unexplained/black money.  Accordingly, ‘Operation Clean Money’ was launched on 31st January 2017. Scrutiny of about 18 lakh accounts, prima facie, did not appear to be in line with their tax profile.  These were identified and have been approached through email/SMS. Of them more than 9.27 lakh responses were received giving information on 13.33 lakh accounts involving cash deposits of around Rs.2.89 lakh Crores. Advance data analytics tools were deployed which further identified 5.56 lakhs new cases and about 1 lakh of those cases in which either partial or no response was received in the earlier phase. Besides, about 200 high risk clusters of persons were identified for appropriate action.  The Income Tax Department (ITD) conducted searches on various entities, leading to seizure of cash and admission of undisclosed income. Since November 2016 and until the end of May 2017, a total of Rs. 17526 Crores has been found as undisclosed income and Rs. 1003 Crores has been seized.  The investigation/scrutiny is going on.

(11) Growth in the volume of Revenue Collection registered by the Government as a result of effective Demonetization Drive:

(i)                          On account of Tax collections this year the Government has registered a net increase in the revenue of more than Rs.2.60 lacs as compared to the previous year.

In terms of Direct Taxes the contribution towards this increase is of Rs.1.05 lac crores. While towards Indirect Taxes is Rs.1.55 lac crores. 

Historically, the government has never ever registered such a tremendous growth in revenue collections within a single year…!

(ii)                      Another notable factor of #DemonitizationDrive is that this year in 2016-17 the total increase in Collection of Income Tax is commendable :

Year 2014-15 ~ Rs. 22,854 Crores 

Year 2015-16 ~ Rs. 21,865 Crores 

Year 2016-17 ~ Rs. 61,632 Crores 

This goes on to prove that every year there had been a cool loss due to the evasion of Income TAX to the order of at least Rs.40, 000 Crores.

(iii)           Advance tax collections of Personal Income Tax (i.e. other than Corporate Tax) as on 05.08.2017 showed a growth of about 41.79% over the corresponding period in F.Y. 2016-2017. Personal Income Tax under Self-Assessment Tax (SAT) grew at 34.25% over the corresponding period in F.Y. 2016-2017.

(iv)                  Besides, the Government registered a phenomenal increase in other Direct Taxes also by almost 14 times :

Year 2014-15 ~ Rs.1095 Crores 

Year 2015-16 ~ Rs.1079 Crores 

Year 2016-17 ~ Rs.15,624 Crores 

This proves that every year national exchequer was loosing Rs.14,000 Crores on this account.

(v)                 In the Year 2015-16 the Government had anticipated a target of Rs. 7.52 Lac Crores from Direct Taxes. But in reality had collected only Rs.7.48 Lac Crores which was less than Rs.4000 Crores from the Target.

Comparatively, this year (2016-17), in spite of the depression forced upon the economy as a result of the #DemonitizationDrive, the Government has collected a cool Rs.8.47 Lac Crores which is almost more than Rs. ONE Lac Crores as compared to previous years.

During the period of #DemonitizationDrive the Department had identified around 18 Lac high net worth individuals with huge sums of unaccounted money. Out of those only 9.72 Lac individuals filed their returns and submitted their Tax dues.

Now out of the remaining 8.25 Lac individuals around 5.5 Lac are those who had deposited very huge amounts to their accounts. They had been called for explanation but none of them have replied. 

There were another 1 Lac individuals who had camouflaged their various accounts with high deposits. The department has initiated action against all such Account holders.

It is estimated that the Government should earn additional roughly around Rs. 1.5-2.0 Lac Crores from such frivolous account holders. 

(vi)                     Demonetization drive led to significant change of saving habits and formalization of assets market.  Considerably more funds came into the organized financial markets, whereas earlier households were parking much of their savings in unproductive physical assets. The savings in the form of investment in equity mutual funds, life insurance premia etc., increased.  The total assets under management (AUM) of Mutual funds (MFs) rose by 54% by the end of June 2017 from March 2016.  As on 16 August 2017, the number of Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts stands at 29.52 crore with rural accounts comprising 60% of it. Thanks to demonetization led efforts, zero balance accounts under PMJDY declined from 76.81 % in September 2014 to 21.41% in August 2017.

(vii)           The impressive revenue collection under GST is also partially attributable to demonetization drive.  The total revenue of GST remitted upto 29 August, 2017 is Rs.92, 283 Crores that too with only 64.42% of assesses having completed the payments. The number of new taxpayers, who have registered with the GSTN upto 29 August, 2017 is 18.83 lakhs

(12) According to data released on Thursday, August 31, 2017 Gross Domestic Product (GDP) grew 5.7% in the last quarter, undershooting market expectations, compared to 6.1% in January-March period.

Some of the vital Concerns and turbulent Issues that are yet in the process to be ascertained:

a.   Now that the whole process of exchange of Old Denominations is over, we have yet to ascertain what's the actual amount of currency still lying idle as CASH in the form of true Black Money but in new denominations with the hoarders, Real Estate giants, money launderers, trading community and other drivers of the parallel economy.

b.  What's the actual total no of fake currency Notes, if any that has been received by the RBI from various sources during the #DemonitizationDrive.

Part II 

Analysis of the stream of #BlackMoney, which has been channelized back into the main stream:

The most important reason of launching this drive of Demonetization in a potential booming economy was to unearth Black Money that has daunted the very core of the economy and has siphoned off the money from the economy to overseas institutions. How far the present Government was successful in its maiden effort is under the cold wraps. Let's now trace the movement of Black Money from the vaults of the owners of Black Money to the Banks in different formats:

Of the total Rs.16 lac Crores cash in circulation, 60% was part of the parallel economy. The whole rot of Black Money ultimately got replaced in the same format with the new currency, with the supervision of some influential politicians, Industrialists, and Traders with the positive contribution of the army of a few corrupt Bank officials who ditched the sincere efforts of the Government. 

 Further, a detailed analysis of this up-current movement of #BlackMoney as per our guesstimate would go like this:

(1)        At least 3% of the black money came back into the system thru the channel of payments received by BSNL, Telephone companies, Electricity and water bills, and House Tax payment outstanding towards the Municipality, from the general public…!

 Surprisingly, many of the Municipalities who had not received any revenue towards House Tax for the past 15-20 years were lucky to receive the complete backlog in one stroke. Good sign. Now those subscribers are bound to continue the payment of House Tax in future as well.

(2)      Another 5% of the Black Money was coughed back thru the Petrol Pumps....!

(3)       Another 5% was present in the form of small amounts below Rs. 1 Lac as CASH for personal expenses held by family members on individual basis...! They too got the money exchanged in a lawful manner directly from the Banking institutions.

(4)      At least 7% of the total amount was invested by some wealthy individuals to purchase Gold etc. overnight.

(5)      Similarly people diverted 2% of Black money to purchase Rail Tickets, Air Tickets, electronic items, textiles and other consumer products. 

(6)      Possibilities are that around 0.5% of the idle money was destroyed or is still lying with individuals hoping against Hope for the revival of the same currency. High Hopes indeed....!

(7)       Hopefully 1.5% got distributed to low income group relatives, friends or employees as gifts / loans / transfers to save their skins from the authorities deposited in their bank accounts, an untold exercise of distribution of wealth

(8)      Finally, the Traders all small & big, doyens of the Industry, who were capable and had right links managed to continue to hide the major balance chunk of Black Money may be around 35 %, made a fine deal with the Bank Officials to exchange all their old Notes against new denomination Notes for a standard commission of just 30%. So in a way it was also  an exercise of distribution of wealth of Black Money from the Vaults of the have's to that of the pockets of the have not's.

Now the most important question that arises in our mind is, if the total amount of fake currency notes that was received and finally destroyed to the tune of 23 lac Crores, had instead been dumped by our external enemies with the help of some insider cronies, then what would have been the state of our economy in near future. This factor even accomplished economists like Manmohan Singh and Raghuram Rajan could not visualize.

Just imagine that illegal counterfeit notes to the tune of more than the actual amount of real money already in circulation and possibilities of additional Rs.10-15 lac Crores that was ready to be dumped by the ISI thru Hawala rackets in near future. This would have completely damaged our economy beyond repair for a very long time.

As an annexure to the above mentioned point, now there arise a few very valid questions:

(i)                     Who was funding the printing of counterfeit notes that were being added to the circulation? 

(ii)                 At what rate in exchange was the seller of these notes exchanging them with original currency? 

(iii)             Suppose if he/she had given ten counterfeit notes in exchange for one note, then at those rate original notes worth at least 2 lac Crores should have been smuggled out back to the manufacturers of counterfeit currency.

(iv)               But if the value of non-returned currency was only ONE LAC Crores as declared by RBI then it proves that they had sold at least 20 -25 counterfeit notes in exchange for one of the original denomination. 

(v)                   The amount of original notes that have been smuggled out of the country to its sellers in Pakistan, Bangladesh, or Dubai will never ever come back to our system.

(vi)               That amount of notes must have already been burnt by its possessors as it was of no value for them either.

Well this was an undeclared cold war launched by the enemies of the nation both within and without for the past two decades. Any kind of war cannot be tackled by just sitting over the fence and watching the show. It has to be retaliated head on by holding the horns tightly and throwing the bull out of the boundaries so that it doesn’t explore to repeat the adventure again. Now any war has its costs involved both in handling it passively or actively. Remaining passive is too dangerous for the economy to sail through. Hence one has to swallow the bitter pill to nip the bud of tumor from its roots and be active.  

Looking to the factors above, some well-meaning economists are of the view that just as we take the exercise of calculation of Population Census or announce the panel of Pay-Commission for Government Employees every ten years, similarly once the Whole amount of Black Money is flushed out, thereafter the Government should launch a drive for Demonetization every 10/20 years to refresh the whole system in order to reinstate the ailing economy...!!!

Now let us Wait and Watch......!!

Time will deliver...

Let us wait how the Government will unveil the next steps with necessary precautions to finally unearth the Black Money in real terms....!!!

INDER KRISHEN WALI 

For more details please visit the following link :

http://pib.nic.in/newsite/printrelease.aspx?relid=170378