Friday, August 06, 2010

India's wealth in Switzerland

If the money is earned and stashed by unfair, illegal, corruptive practices and kept in secret to avoid the taxes is called BLACK MONEY. Circulation of unaccounted money is big a threat to economy and loss of revenue to the government. The generation of black money is against to basic objectives of economic planning for India, those are eradicate of poverty, removal of disparities of poor and rich, generation of employment and building the nation.Money laundering is the practice of engaging in financial transactions to conceal the identity, source, or destination of illegally gained money, but in actual scenario the definition has broadened by governments and international authorities.

The Prevention of Money-Laundering Act of India (PMLA) - enacted in 2002 and came into effect on 1 July 2005 which prevents money laundering and the parallel economy. According to this act, Reserve bank of India has given the guidelines on the cash transactions, deposit tracking, reporting, operation and maintenance of the records to the all financial institutions and non banking companies, I.e KNOW YOUR CUSTOMER (KYC).However the domestic black money is turning around in our economy and it is productive up to some extent. But we need to think about the money which was stashed in foreign banks are not useful to India. Some of the estimates are stating that a $1500 billions (about 70 lakhs Crores) of Indian unaccounted money is lying in Swiss and other foreign banks. This is the highest amount accumulated outside any country, from among the countries of the world. If that money brings back to India, every family in our country would get nearly Rs. 2.5 Lakhs, the national debt will be cleared and people would get a tax- free budget for 30 years.

Just for your information that Hinduja Brothers (Bofors guys) started a Swiss regulated bank (http://www.hindujabank.com/) in 1994 and this is the only Swiss bank which is owned by Indians. We can easily figure it out that all unauthorized money could be belongs to some of the leading politicians, top industrialists, celebrities, lobbyists and underworld mafia. Recently Swiss government has liberated their banking policies due to international demands and last year UBS bank revealed 4450 secret accounts details to US Government. Still the Indian government has not initiated the process to get the Indian Individuals accounts’ details though India is the member of Financial Action Task Force (FATA) which combats on money laundering and terrorist financing. Being a FATA member, Indian can get the real-time information on money laundering from member countries and pressurize the other countries on stashed Indian money by diplomatic approach. One important thing is that all the account holders’ information (Names and whereabouts) may not be genuine because they are not fools to hold such a huge amount on their real names which can be traced back to them. The government should probe into this unaccounted money and all deposits which are not claimed by any individual must be nationalized. More information on the same, please read Mr.LK Advani’s blog: blog.lkadvani.in

keep attention on this righteous cause and share your innovative ideas: Yashwanthx@yahoo.com