SCAM in the name of Demonetization
We all are in support of evasion of black money from our economy and thus each of us is really willing to suffer to make sure that we reach to our targeted destination. Surprisingly, 2 weeks have been passed since the announcement of Demonetization and we could see some factors which directly suggest that only demonetization can’t help to evade the black money from system.
Lets understand the effects and expectations from this demonetization.
- Per Person Per Day Income -biggest loss of Indian Economy Our finance minister was proudly sharing that in just 2 days SBI have handled more than 2cr transactions. To understand this figure, he supported the fact that SBI is managing over 20% of banking business across country and thus it was understood that over 10cr people have been standing in queue in just 2 days from the start of demonetization. Means, in 14 days, not less than 60-70cr transactions (combining unique or repeated individuals) involving an average of more than 5-6 hours (almost a day) for every individual standing in queue. As per 2015 report, our per capita income is approx 300/- per day and if we go with above calculation, our nation have lost directly Rs. 300*5cr*minimum of 35 bank working day in total of 50 days i.e. Approx. 1 Lac Crore.
2. GDP Effect in Indian Economy
The kind of loss in momentum in the activity of unorganized sectors where more of cash transactions is giving a clear perspective of what kind of loss we have been getting in last 14 days in our GDP and would be keep on getting until 31st dec and it is not sure that market will be on track after 31st dec as well because even then, cash crush will be there and may sustain for further few months. It has been understood that all unorganized sectors are doing business of not more than 20% comparing what they use to do before this demonetization. Can’t get the perfect calculation but we are sure that since the transactions were less, we have lost on huge amount of central and state taxes as every item we purchase or sell, we know there are some taxes involved.
3. More than 60 lives lost in 15 days Life loss is the biggest loss we are suffering from this demonetization. More than 60 live in 14-15 days in not a small figure. Please note that these are media figure and the actual figure may me much more because of low media reach to certain families where they have lost their family member’s life due to this un planned act of killing. Let’s wait and watch how many more to come in this dreadful count.
4. There is no cash in bank , here’s the prove
Bringing cash withdrawal limit from 4500 to 2000 is a simple indication which confirms that government was not ready with the currencies replacement procedure and still they are not at level where they can actually exchange what is need to be exchanged. This kind of big decision which is affecting many should have been taken with proper preparation. Every citizen of India is supporting this just because we all are against black money but the way it is happening, it doesn’t look like it will really effect black money evasion. Even bankers have started saying that this decision is an unplanned decision from the government.
5. Marking Ink is a propaganda
The funnier part is that marking ink and lines for specific set of people and based on that propaganda that lines have been reduced at bank. Just because we don’t have proper procedure in plan, we are asking people not to exchange what they even have in white (hard earn money). Ridiculous. In earlier days it has been said that 4000 exchange limit is just for few days that the same will increase drastically but what happens later is something really adverse.
6. We forgot 500 lac crores black money in Swiss Bank and focus on 14.5 lac crore( total currency of India, which is much less than swiss bank’s black money)
Without having any plan towards properties/assets evaluation, no boundaries for having properties, no boundaries for having gold, no boundaries for having dollors will ever evade black money from system. Even if we forget about black money in Swiss accounts for a while, without looking at these perspective we can’t hit black money hard.
7. Maximum 2-3 lac will come after this demonetization , see how ?
This is to understand that we have 14.5 lac crore currencies of 500 and 1000 notes rolled over which is suppose to come back in the system. History shows that this kind of demonetization will always have a loss of 15 to 20% of currencies dues of several reasons which will never come back in the system. This means that only 10 to 11 lac crore currencies will come back in the system. Please note that over 8 lac crore of currencies are already in system which is white money. This means, maximum of 2 to 3 lac crore will come back in system as black money on which approx 50 % tax will be charged by government as income tax and balance will be treated as white income. So, only approx. 1.5 lac crore is only what is coming to government as taxes which is not much if we see the kind of losses this demonetization has.
8. Central Government is waving off loans of billionaires but not of farmers or small/middle class businessmen , why ?
Very important thing, the way this government is waving off loans of billionaires across country is not something which is accepted in this kind if situation. Worse was when it has been heard that recently SBI have waved off more than 6000 crore of some 63 accounts (including the Bhagoda Mr. Vijay Mallya) within 3 days of demonetization announcement. Looks like bankers are getting money from common public to write off their bad debts. Is it really an act of evading black money or an act of holding hands of banking system which had more than 8 lac crore under their bad debt.
9. This is happened for political benefit. After 2-3 months stupid common public will forget all these things and ministers uses this topic in their manifesto Even some sources have said that all these have happened just for some political benefits became we have elections in UP, Punjab and Goa in coming year. We all know that political parties will become handicap after this act and the same will be a real benefit for BJP lead NDA government.
10. Act of patriotism but actually do anti-national things to support this Scam After looking at so many media news, articles, these facts mentioned above and the pain every single individual is facing, this demonetization is looking like nothing but a big SCAM. But the biggest pain is that each of us is reacting to demonetization as very positive just because we all know that if it will be asked to any Indian that if they are with black money or against black money, they will never say they are with black money. Each of us is treating this as an act of patriotism but nobody understands the real pain in this process. Until the government is coming up with actions against bennami properties, holdings of un-registered gold and dollors etc, this act of demonetization will never be a successful act of black money evasion.