Objectives

To create an opportunity to attract maximum inflow of long-term, lowcost Fund flow, from legitimate sources outside India, into India in order to enable us to take up the provision of additional and urgently needed facilities for fundamental needs (Primary Health and Education), and other essential Infrastructure Projects (Water, Power, Roads, Irrigation, Rural Development and Urban Renewal etc.).

The amount of India’s wealth lying idle in accounts in Foreign Banks today is variously estimated to be Rs. 106 Lakh Crores or even Rs. 140 Lakh Crores – either is, by any measure, an astounding sum of money. This money, if brought back and put to productive use in the Country, would change the face of India tremendously. The earnings on this amount will be more than our annual budget. The Government should thus forget about levying any tax thereon and just concentrate on getting the money back into the Country and put it to productive use. Time is of essence as the need is urgent and also, as the real value of money drops over time.

But how can we get this money back into the Country? There seems to be no realistic way to get all the Foreign Banks to give us all the details of all such account holders and getting only a very few names would really serve little purpose and perhaps not even be cost effective. The only practical answer to this conundrum is to make the very Account holders want to bring their funds back into the Country voluntarily and in a short period. But should we do this even if we can?

We can argue over whether the Indian concerned was an unpatriotic individual who at first opportunity moved much of his / her wealth out of India for non-productive security (even if at a cost), without paying his / her taxes as due in India, or we could recall the near confiscatory rate of taxes (at times totalling to over 100 percent) as then applicable in India; and confiscatory Property laws of the many early decades of our Independence, and understand that perhaps there was some ‘Justification’ for such flight of money out of the Country. Of course, those who made money out of corruption and also, moved such money abroad do not have even such ‘Justification’. Obviously, such movement of Capital could only be done by using illegal and mostly underworld ‘Hawala’ channels, many operated by criminals, thus strengthening their operations further.

We will however, now restrict ourselves to considering the matter of the majority of such account holders who are not criminals but perhaps would be from: the erstwhile Ruling / Zamindari families, the Political Parties / Leaders, the Professionals, Bureaucrats in key positions and the Business classes. Once these are removed from the total it would tighten up the System and make it easier to identify and take action against the others who would be mainly from the underworld and also, to prevent such activity in future.

Now, before anyone goes on about wanting to cast the first stone at such account holders, we need to ask him/ her, and also, those who were Tax payers or Property owners even up to about 35-40 years, ago the following questions.

1. How did you or any of your family members move foreign earnings into India to pay for the expenses of your dependent family members here? Did you ask your friend to act as a ‘Hawala Operator’ to take advantage of the arbitrage opportunity between the official and unofficial value of the Dollar / Pound / Rial / Dirham?
2. Did you or any of your family members, who needed more Foreign Exchange abroad than the RBI was in those days willing to release to you, even when you were certain that you had a genuine need for your medical / educational / business expenses, arrange to meet such shortfall through friendly ‘Hawala’ contacts?
3. Did you or any of your family members give or accept ‘black’ money in any Property Transaction?
4. Did you or any of your family members hold or deal in ‘Benami’ Funds or Properties?

Did you or any of your family members under declare, or not at all declare, any or part of any income ever received or of gifts received or of wealth owned

5. Did you or any of your family members contribute to the ‘Black Economy’ in other ways such as by not paying taxes on purchases.
   1. By paying ‘bribes’ or ‘speed money’ for some service or the other, or to obtain some unfair advantage?
   2. By under / over declaring the value of exports / imports?
   3. By evading applicable excise /octroi payments or full payment for services availed from service providers such as the Electricity / Water Departments?

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