PROTEST — RIGHT OR RESPONSIBILITY

From the HEART of a true INDIAN: I am an INDIAN citizen by birth and carry a very strong feeling for my country as well as for every fellow INDIAN. For the last few months what’s happening in my country on the issue of FARM BILL has really given me a HEARTACHE. This blog is not about benefits vs shortcomings of the bill but I would like to share my heart feelings on the ongoing protest through this very first BLOG of mine.

What ever happened on Jan26, 2021 on REDFORT was really unfortunate and unexpected. Its not that I am against any religious flag but I personally believe that religious flags are meant for religious places only and NATION’S FLAG for national monuments. Tomorrow some other religion people will come and will unfurl their flag at the same place which may lead to a huge communal controversy. I believe every Indian may not come under one religion flag but all religions of India can come under one common flag of INDIA(TIRANGAA). We live in a DEMOCRATIC country not in a COMMUNAL one

I have full FAITH that all the farmers sitting in protest are not TERRORISTS but I have DOUBT that few TERRORISTS may be sitting there as farmers. These anti-national elements may not be able to create a separate state but they have really succeeded in creating state of hard feelings in so many HEARTS. They have achieved their mission in disrupting the peace and harmony. Imagine current situation, a brother opposing a brother, 2 friends who used to eat together are arguing with each other, student teacher relationship has lost its sanity, blocking unblocking each other on social media and what not. There is a fierce competition between pro and against followers. One is showing bleeding FARMER and other one is proving his/her point by showing pic of injured POLICEMAN. Hatred is radiating like anything. That's exactly what these anti national, anti social elements wanted and that’s what they have achieved. Unfortunately our enemies don't need bullets or bombs to destroy us, for them one RELIGIOUS FLAG is enough (may be of any religion) and there you see cataclysmic effect of HATRED for each other. One thing worth realization is, either its the blood of a KISAN or blood of a JAWAN, ultimately its the blood of BHARAT MAA ki SANTAAN. Today a cop might eat food produced by a farmer whom he lathi charged but tomorrow same farmer might be protected by a cop whom he stone pelted. We don't live in an independent world nor in a dependent world but certainly in an INTERDEPENDENT WORLD. We all need each other, if BHAGWAN is important so is BHAKT, if AUTHOR is important so is READER, if producer is important so is consumer, if KISAN is important so is JAWAN and if AGITATION is important so is PEACE.

Through this blog I wish to request every fellow Indian to rise above your personal emotions and work together as a team, as a family to maintain peace and harmony so that we can take our country constructively forward . This agitation is temporary(till both parties arrive at a common platform)but it should not create a PERMAMENT dent in our relationships. Lets FORGIVE each other and FORGET how harsh they were. In such a volatile situation lets work together on a common goal of “COMPLETING EACH OTHER INSTEAD OF COMPETING WITH EACH OTHER” — — — — — —                                          MANISH SHARMA, an INDIAN

Black Money

Black Money-Issues, Challenges and Remedies
Dr.Vimal Kumar Aggarwal

Money has no color as such, but still it is being labeled as Black or Green. Most of us will agree that money has same value when used irrespective of the color tag it carries. No one question color of your money excepting statutory authorities. In simple language, black money is the money generated on which no tax is paid. i.e. money generated by evasion of taxes on legal activities like trade, business or services or illegal activities like smuggling, betting etc. . Black money has serious implications for any economy and society at large. Poverty being at the top as benefits of economic development is cornered by a selective few. It is also hard fact that inflation is also connected to black money where haves can buy anything at any price thus pushing the rates while have not’s suffer.
Black money is prevalent all over the world but with varying degree. India, recently witnessed a high voltage public anger against corruption and black money in India. Different personalities raised their voice against black money which is one of the major reasons for rampant poverty in India.
Different sources estimate quantum of black money in India at different levels. But one thing is common among all these estimates is that if a ‘Black Money Olympiad’ is organized; India will win maximum gold medals.
Black money is generated through various means. Among the various reasons, two major reasons are bribes (Corruption) and evasion of duties and taxes.
First and the foremost source of black money are illegal gratifications also known as bribe received by the receiver. It is a well known fact that black money and corruption has a direct relationship i.e. higher the corruption, higher is the quantum of black money. Even as per Corruption Perceptions Index Report for 2010 of Transparency International, our standing among the honest countries stand a poor 87 among the 178 countries ranked by this international organization (http://www.transparency.org/policy_research/ surveys_indices/cpi/2010/in_detail). This speaks of the huge volume of a parallel economy.
Second major reason for generation of Black Money is the evasion of duties and taxes by the concerned person. These can be further classified into two segments i.e. Organizational and Individuals. In organizational segment, it again consists of both organized and unorganized sector like corporate, firms and traders, societies etc. while individuals are common man, politicians and public servants.
A layman is then wondering where all these black money goes. The major chunk of black money is invested in real estate which further multiplies the black money due to duty evasion. In the absence of any regulatory body in the real estate and presence of a strong nexus between politicians, businessmen, authorities, professionals and criminals have made tax authorities a complete failure. This has deprived the common man even a basic necessity like affordable housing. Otherwise, do you think tax authorities are not aware of openly happening black money transactions worth millions taking place in the market? If they want it can be just controlled in a year’s time. The first step needed is to regulate the brokers. Second, sale price of all transactions above a thrash hold limit should be mandatorily published in the media. Although, there is already a provision in the Income Tax Act for taking action on the basis of any such transaction, but despite the facts such transactions worth crores of rupees on daily basis is taking place in every part of the country and how many time this provisions is being used is an open secret.
The second area of pumping black money is into stock market, where all kind of manipulative deals are done. It has become more of the operator’s game rather than investors. All of us are aware that how dirty money is flowing through the tax free heavens like Mauritius using P-notes and other dummy companies. It is not surprising that in spite of knowing dubious transaction taking place, govt. in the grab of Double Taxation Treaties are allowing such transaction. Moreover, it is endangering the security of the country. Then question arise as to how we are ignoring these factors in the name of growth. How this is helping the economy of a country like India? Still we need to doubt who the people behind all these activities are?
Third destination of black money is foreign banks like infamous Swiss Banks and some banks in Germany and USA. People like Dr.Subraminam Swamy & Baba Ramdev supported by many likeminded persons are crying hoarse for bringing back black money stashed abroad. But surprisingly the present Govt. instead of taking effective steps , is indulging in mud slinging and taking shield like confidentiality even for disclosing the names of some of the traitors who first siphoned off funds and are now pressurizing the govt not to take action. An important question is whether a commercial organisation like Swiss Bank or such other banks even though situated in a foreign country can take such a stand knowing very well that majority of such money transferred in bank accounts is illegally earned and is also being used for promoting crime and terrorism as well.
While, these banks may have every right to refuse this information citing confidentiality clause, had it been sought by an individual or any organization. But, is it not surprising that a Swiss or any such other bank for that matter can refuse information to a Sovereign Country the desired information which is affecting the life and security of that country. Does not it smell foul play? Then what is the use of having international organizations like UN and similar other agencies, if they cannot intervene and order to disclose such information when desired by any sovereign government. No doubt, lack of will power of political bosses & their deep rooted involvement in these transactions is the main reason for this.
Thirdly, black money is kept in currency form or gold or Fixed deposits in banks, Insurance policies etc. Even, it is surprising that people buying expensive cars are showing the minimum income which is not even sufficient to afford a two wheeler. But banks, professionals and marketers continue to ignore such factors and will continue to finance such deals giving opportunity for use of black money.
Now let us have a look at the reasons of black money. The major reason for black money is personal greed to amass wealth while in some cases it can be high rates of taxes, cumbersome procedures of tax compliance and corrupt professional and tax authorities. While personal greed is the major reason, cumbersome procedure and corrupt tax authorities plays equally important part. We all know that in the first 50 years after India got independence, tax authorities behaved like blood hounds rather than the watch dogs.
It scared even the most honest persons who really wanted to pay the taxes but being feared of harassment at the hands of tax authorities preferred to show least incomes thus evading taxes. This was further compounded due to connivance of the accounts and tax professionals with corrupt tax authorities in spite of the fact that they were entrusted with the duty of playing independent role. Rather unfortunately many of them started the role of a middleman between assesses and tax authorities for brokering deals and taking their cut which further multiplied the black money...
The failure of the successive governments to curb this menace is impacting the lives of not only a few, but majority of common man. They are being deprived of even basic amenities like food, clothing, shelter, health and education after 64 years of independence. Is it not shameful for both black money holders and the regulatory bodies that while it is lying idle in foreign banks strengthening their economy while ruining economy of their own motherland, or their personal houses?
The last point is ‘How to tackle this epidemic?”. The need of the hour is to play a proactive role rather than passive, as normally happen in the case of policing in India, which always reaches after the crime has happened. However, at the same time recent tracking of explosives in Ambala, India by intelligence agencies is a good example of how preventive measures can save disasters. Thus, an important question arises is that if we are capable of tracking such difficult task, but stops us from tackling a simple problem like black money and corruption, although projected as complex by beneficiaries? The need is to tackle it with heavy hand and quick punishment procedure rather than prevailing never ending decisions.
A story belonging to an unknown country where govt. was struggling to control ticketless travellers in railways is a classic example. When all sort of actions failed, govt. announced that any ticketless travellers caught will be shot at sight. In the coming days govt. implanted and about 10 ticketless travellers were given this punishment. And see the result, next time majority of them not only ensured ticket, but many of them even ensured two tickets to avoid any fault.
Yet many of us may not agree citing humanitarian ground such a punishment for small offence, but small offences if go unchecked results in bigger one. The dilemma between these two can be solved by simple arithmetic is should we allow to suffer 85% of the population for the sake of just a small fraction of population or should be punish small faction for the well-being of large population? ‘Nip the evil in the bud’ is an old saying. A South Indian movie (dubbed in Hindi) named “Aprachit” meaning ‘Unknown’ is worth watching to understand why stringent laws and harsh punishments for smaller offences are necessary to prevent this epidemic. So, take a decision before it is too late.
The second step is to act tough against the corrupt tax officials as well as accounting and tax professionals who has crept into this system and has become an integral part of the black money generation. In India, Satyam, Hasan Ali, Harshad Mehta to name a few were able to commit such crimes because of their close nexus with these officials and professionals. All regulatory bodies both government and autonoums needs to pull up their socks and keep a strict vigil on its members and fast track punishment in all such cases will improve the situation remarkably. In a famous quote “ Kaun Kehta Hai Asaman Me Surakh Nahi Hota, Ek Pathar To Tabiat Se Uchalo Yaaro.” means Who says you cannot penetrate the Sky, Just throw a stone with full vigor.” Let us hope after so many stones being thrown recently, it will be proved right in India.

Corporate Greed
Dr.Vimal Kumar Aggarwal
Management Consultant

Recent protests in America named “Occupy Wall Street” or for that matter in Spain named as “indignant” against corruption and greed in the corporate sector, now spreading to a major part of the world, be it America, Asia, Europe or Australia (82 other countries comprising of 951 cities) is an indication of the growing resentment of common man against the greed and corrupt policies of corporate sector. The major reason is the widening gap between have and have-nots due to it and the failure of successive governments to take effective steps in their respective countries. A small protest which started from New York has taken a giant leap and is threatening the world of its dire consequences.
It immediately reminds us of Anna Hazare’s recent movement for a strong Jan Lokpal bill against corruption and Baba Ramdev’s movement for bringing back black money stashed abroad gaining momentum so sharply in India and has quietly vindicated stand of so many people that corporate sector is also responsible for many of these ills. The collapse of big financial institutions like Lehman Brothers in America and many other such scandals in other countries leading to sub-prime crisis resulted in major recession in the recent years .Now, it is a well established fact that sub prime crisis was mainly due to the extreme greed of the corporate executives who in order to get huge pay packets running into millions US $ pushed all the prudent banking & lending norms to the wall. All of us are fully aware of the consequences of this which resulted in loss of jobs, poverty and crime. These are a few of the innumerous cases pointing towards greed and corruption in the corporate sector.
Taking the cases in India, Satyam case is a classical example of corporate greed. The company who was awarded Golden Peacock Award for Best Corporate Governance just few months before the infamous case appeared in the media. Is not it the irony that such a company has to face such a situation, merely because the promoters namely Raju Lingam and Brothers for their personal greed pushed one of the best respected companies till then to the brink shaking confidence of millions of investors, stakeholders and Government? Who is responsible for all this mess? Not only the promoters but others like Financial Auditors, regulatory bodies etc who were trusted with the job of protecting the interests of stakeholders but became a part of this sordid episode. The case also shows the greed of Financial Auditors who became part of the dirty nexus between the two, leaving common man thinking whom to trust.
The recent 2-G scam is another example of how corporate sector due to its greed did not hesitated to take to all means of corrupt practices to get the licenses. Role of so called Corporate Lobbyists in 2-G & many other scams which is under investigation is undoubtedly, part of corrupt practices followed by the corporate sector. Even if we look at the majority of bribes excepting day to day from common man, being given to Income Tax, Central Excise and to other govt. departments a large chunk comes from the corporate sector.
However, the so called greed does not have only the financial effects, but due to sudden mad race among the corporate to become number one in their respective field or in the world has many side effects. First and the most critical is disturbed life work balance due to extreme demands from the Companies to achieve ever growing targets resulting in high level of stress on the workforce. This stress is now a well-known fact and is severely impacting the health of the society. Not only health , the mad race is also pushing the crime graph up due to widening gap between haves and have not’s. Earlier, the salary gap between lowest and the highest paid staff in any company used to be somewhere between 10-12 times which has risen somewhat between 100- 200 times due to free hand for corporate sector in fixing salaries for Top Management. In the name of this freedom, majority of them have started taking huge pay packages including incentives, besides tax free dividends. Unfortunately, when things go wrong, then this normally affects the lower band of work force while top remained untouched. Retrenchments take in the form of casual workers, junior officers etc. which does not cost more than 10-15 % of the total manpower costs.
Now look at the capital markets. Companies are now free to fix their initial public offer share prices (IPO’s) instead of earlier Controller of Capital Issues (CCI) formula. We have seen that many times some of them in connivance with regulatory bodies, merchant bankers and some other partners took to malpractice and cause huge losses to common investors, who have no mean of verifying the genuineness. Volatility in the capital markets can also be partly attributed to the corrupt practices and greed of those sitting at higher positions in the corporate sector, like Raj Rathnam in USA along with his associates, who has been recently convicted of making huge money through insider trading as well as denting the reputation of one of the most respected Indian origin CEO again reflects on the ever increasing greed among the corporate executives. Even people like Harshad Mehta or Ketan Parikh who made huge financial losses and shaken the confidence is directly or indirectly related to the corporate sector.
However, despite the facts stated above, we cannot deny the rightful role corporate sector plays in the economic development of any country. It is also equally important to give them freedom for the smooth conduct and growth of their business. But, at the same time, corporate sector should voluntarily ensure to follow ethical practices beside strict implementation of regulatory norms for safeguarding interest of one and all and regulatory bodies should sternly deal with the guilty. Thus, there is a great need for all the concerned to sit together to find out the solutions to control this menace before it takes an ugly turn and leads to such situations like “Occupy Wall Street” or “Indignation” for that matter.