Fight Against Corruption- Discussion

[Marqueur]

BY SOUMITRA / OPINIONS / 18 MAR 2017
On Nov 8, 2016, Prime Minister Narendra Modi addressed the nation and launched one of the biggest steps in the war against Black Money. The Demonetization of Rs. 500 and Rs. 1000 notes was a firm step to tackle the black money held in form of cash. Many people who had unaccounted cash were forced to destroy the same or put it in the banking system thus making it part of the formal economy. After the Demonetization some 18 Lakh people who had deposited 4.2 Lakh Crore Rupees were sent notice by the IT department asking for explanation for the source of funds.
Demonetization no doubt had caused short term inconvenience to people but they understood the govt’s intention. The opposition and the “liberal” economists went to town shouting that demonetization was anti people but the people responded well to the move and in election after election- Panchayat, Local Body, By Elections- people voted in favour of the BJP culminating in massive landslide victory or 324/403 seats for BJP and allies in the UP-assembly elections. The UP-Assembly elections were said to be a referendum on demonetization and the people gave their thumbs up for the move.
The fight against black money has not ended with Demonetization. As had been pointed out by many that cash is just one of the ways to hoard black money. The other being Benaami Property and Gold. Benaami Property is a property owned by a person but shown in other person’s or a shell companies name. Most of this property is bought in cash and there is very little record of the same.
The Modi govt has proved that it can take seemingly unpopular but bold decisions in its fight against black money. A similar bold decision is needed for bringing out black money in form of Benaami Property. There are a few bold ways in which this information can be brought out
(1) Ban on Cash Transactions: In the budget the govt has already proposed the ban on cash transactions above Rs. 3 Lakh. This will have a significant impact on the new purchases of Benaami property in cash.
(2) Data Mining: The demonetization move has brought a large amount of data to the govt. It can do data analysis on the transactions from 8th Nov to 30th Dec to find out people who have cash in hand disproportionate to their income. Many of these people holding black money in cash may also have Benaami property. The govt must carefully scrutinize all property transactions in the period 8th Nov to 30th Dec to find out buyers with dubious credentials.
Apart from this the govt should also look at relatives and close associates of the people suspected to have black money in cash. It is possible that they have property in the name of their spouses, children, parents, associates etc. If it is found that the relatives and associates of people suspected to have black money are owners of properties then a thorough investigation must be done to determine the true ownership of the said properties
(3) Re-registration of properties: The third and final step that I am proposing is the boldest step. It may be as bold as the step of demonetization of 86% of the cash.
The govt should announce that the registration of all properties with value above a threshold limit (say 20 Lakhs) has been cancelled and they must be re-registered with the authorities. There will be no charges for this re-registration. However, this re registration will be closely monitored and all properties will be linked to Aadhar Cards and Pan Cards of the owner.
If it is found that a person has properties disproportionate to his known source of income, then he/she will have to give the explanation or will have to pay appropriate fine. There can be an extended window of 3 months to re-register your property. In these 3 months property transactions, will only be allowed on properties which have done the re registration.
If any properties are not re-registered in the given time frame, then they will be deemed to be owner less and should be auctioned off and the revenue credited to the govt accounts.
This step will bring to fore the correct ownership structure of the properties in question and unearth huge amount of black money hidden in form of property. Like with cash deposit there can be a voluntary disclosure of the property ownership so that people are given a chance to come clean
I sincerely believe that such steps will be a big blow to black money and will be supported by the public at large. Such bold steps are required for a clean corruption free India

Benaami Property: Next Step in Fight against Black Money

 

[VCheng]

The Demonetization of Rs. 500 and Rs. 1000 notes was a firm step to tackle the black money held in form of cash. Many people who had unaccounted cash were forced to destroy the same or put it in the banking system thus making it part of the formal economy.

So how did this first step work out before we move on to the next step?

 

[RISING SUN]

I-T unearths doctor-medical centre nexus in Bengaluru; Rs 100 crore black money detected
: PTI | Bengaluru | Published: December 2, 2017 10:34 pm

The department said referral fee to doctors was paid in at least four ways, including fortnightly cash payment and advance cash payment.
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Income-Tax officials have unearthed a major multi-layered nexus between medical centres and doctors and an undisclosed income of Rs 100 crore after searches at a few IVF clinics and diagnostic centres, the department said today.
It claimed doctors were being paid “for referring medical tests”.
IT sleuths, the department said, have seized about Rs 1.4 crore in cash and about 3.5 kg of jewellery and bullion during its three-day action against two in-vitro fertilisation (IVF) centres and five diagnostic centres.
They also seized foreign currency and detected foreign bank accounts with “deposits running into crores of rupees”.
While the labs searched have declared an undisclosed income of over Rs 100 crore, the amount of referral fee in case of a single lab is more than Rs 200 crore, it said in a statement.
The searches at the diagnostic centres, a senior official said, uncovered various methods by which doctors were being paid for referring medical tests.
“The commission varied from lab to lab but the median range of normal cut/commission for doctors is 35 per cent in case of MRI tests and 20 per cent in case of CT scan and other lab tests. These payments are found to be disguised as marketing expenses,” the statement read.
The department said referral fee to doctors was paid in at least four ways, including fortnightly cash payment and advance cash payment.
In some cases, referral fee paid to doctors by cheque was shown in books as “professional fee”.
As part of a deal, doctors were employed as in-house consultants. “However, neither they come to diagnostic centres nor see patients or write reports. This payment is a disguised referral fee,” the statement read.
The department claimed referral fee was paid to doctors by cheques under “revenue sharing agreements”. “Some of the labs employ commission agents whose job is to distribute money to doctors in envelopes.
“These agents insert a small chit in envelopes while giving them to doctors which contains the details – names of patients referred by the doctor, doctor’s name, tests done, amounts billed, cut/commission amount to be given to the doctor and the date on which the test was done,” it said.
I-T unearths doctor-medical centre nexus in Bengaluru; Rs 100 crore black money detected

 

[RISING SUN]

@nair can you please arrange to convert this thread in a dedicated thread as India's Fight Against all forms of Corruption.

 

[RISING SUN]

Gold, cash seized in raids on IVF clinics
Searches by the income tax department over the past three days on medical establishments in Bengaluru have blown the lid off a huge scam involving tax evasion and doctor referral fee that runs into several crores of rupees.

Investigating officials carried out searches on two IVF clinics, doctors and five diagnostic centres, including the residence and office of a wellknown fertility expert.

On Saturday, the office of the director general of income tax (investigation), Karnataka and Goa region, Bengaluru, said they seized Rs 1.4 crore in cash, 3.5kg jewellery and bullion, apart from foreign currency and detection of foreign bank accounts.

The searches at five medical diagnostic centres resulted in establishing various methods whereby doctors are paid for referring medical tests. The commission varied from lab to lab but the median range of normal commission for doctors is 35% in case of MRI tests and 20% in case of CT scans and other lab tests. These payments were disguised as marketing expenses.

The payment of referral fees to doctors was made in many ways. One method is cash payment on a fortnightly basis. Advance in cash paid to doctors as a kind of imprest cash from which the actual referral fees payable is adjusted. The advance is again recouped on a fortnightly basis The I-T department communication said in some cases, referral fees paid to doctors by cheque is disguised and shown in books as professional fees. In such cases, there's an agreement with doctors by which they are taken as in-house consultants. However, they neither come to the diagnostic centres, see patients nor write reports. This payment is a disguised referral fee.

There are even some revenue-sharing agreements with some doctors by which a referral fee is paid by cheques, the department said.

Business via chits
Some labs employ commission agents whose job is to distribute money to doctors in envelopes. These agents insert a small chit in these envelopes while giving it to doctors, which contain the details of patient referred by the doctor, doctor's name, tests done, amounts billed against the tests, and commission to be given to the doctor and the date on which the test was done.

It's seen that doctors are very particular about the amounts: where they don't get their 'due', they return the envelopes and the dispute is later settled with the labs.
Gold, cash seized in raids on IVF clinics - Times of India

 

[RISING SUN]

Mumbai just lost a 4-acre open plot due to BMC’s lapse
In a setback to the BMC, Mumbai has lost over 3.69 acres of land in Jogeshwari that was reserved in part for an open space recreation ground and hospital, after the corporation failed to acquire the plot in time. The Bombay high court recently declared that the reservation on the had lapsed and its owner was now free to redevelop it.

"The reservation in respect of the property had lapsed under Section 127 of the Maharashtra Regional and Town Planning Act as no steps had been taken by the (corporation) to acquire it for the designated purposes for more than 10 years after the development plan came into force or within 12 months of the issuance of the purchase notice on May 15, 2014. We are of the view that the reservation on the property having lapsed, the petitioner is entitled to develop the same in accordance with law," ruled a division bench of Justice Vasanti Naik and Justice Riyaz Chagla.

The land spread over 3.69 acres - around 1/6th the size of Oval Maidan - is located on Subhash Road in Jogeshwari East. In the 1991 development plan for Mumbai city, the land was reserved for a recreation ground, hospital, houses for displaced persons and a public road. One Gyanprakash Shukla who claimed to be the co-owner of the plot having purchased it in 2001 from the original owners, approached the high court last year. Shukla claimed that for over two decades after the development plan the corporation had not acquired the land. Shukla said that he had issued a purchase notice to the corporation in May 2014. Since the period of 12 months from the date of the purchase notice had expired in May 2015, with the BMC taking no steps to acquire the land, under the law the reservation had lapsed. Shukla added that he was not insisting on the land reserved for a public road.

The BMC however disputed the claim and pointed to its February 2015 letters that had claimed that the purchase notice was not valid and Shukla had no proof that he owned the title to the land. Both the contentions were dismissed by the high court. "In the present case, we find from the documents on record that the purchase notice had been verified by the legal department of the BMC and had also been issued to the Municipal Commissioner. Hence the corporation cannot contend that

the purchase notice had not been served," said the judges while referring to a Supreme Court judgment on the issue, "It is not open for the BMC to raise this contention that the issuance of the purchase notice on the Municipal Commissioner is not proper and valid service," the high court held. The bench further cited another apex court judgment that any person interested in the land could issue a purchase notice.
Mumbai just lost a 4-acre open plot due to BMC’s lapse - Times of India

 

[Himanshu]

First Major Tax Raid on Bitcoin Exchanges Underway Across India

An investigation by Sputnik had earlier revealed that brokers were luring investors into pumping in their illegal cash into India’s real estate using Bitcoins.

New Delhi (Sputnik) – India's income tax department has unleashed a countrywide raid on Bitcoin exchanges on suspicion of alleged tax evasion. Tax officials have been inspecting the documents of at least nine Bitcoin exchanges in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram since early morning Wednesday.

"The income tax officials are gathering evidence to establish the identity of investors and traders, the transactions undertaken by them, the identity of counterparties, and the related bank accounts used, among other things," an income tax official told the PTI.

The raid is being conducted following a report of massive investment in Bitcoins and other cryptocurrencies in recent months by various individuals and entities.
Industry body Assocham has reported that Bitcoin is attracting an average of 3,500 new users/entrants per day in India alone. It also said that Bitcoin and other virtual currencies are gulping down a major proportion of surplus savings in the economy, threatening to derail the financial structure.

Meanwhile, the income tax department is also mulling imposing a tax on the income generated from virtual currencies like Bitcoin, sources told Sputnik. Current provisions in India's income tax law allow the government to impose a tax on such undeclared income by counting them as assets.

 

[Shashank]

2G scam case: In shock verdict, court acquits A Raja, Kanimozhi and other accused

NEW DELHI: In an extraordinary twist, a special CBI court on Thursday acquitted all accused, including former telecom minister A Raja and DMK MP Kanimozhi, in the Rs 30,000 crore 2G spectrum allocation scam cases.


Special CBI judge O P Saini pronounced the judgment, clearing 19 accused of all charges in the Enforcement Directorate's money laundering case which comes under the gamut of the 2G scam case.

"The Court said that the prosecution has miserably failed to prove any of its charge. Thus all accused are acquitted," defence counsel Vijay Aggarwal said outside the courtroom soon after the shock verdict.

Former CBI Director A P Singh, who led the arrests of A Raja and corporates, expressed bewilderment on the acquittal of all accused in the 2G scam case.

"I don't know what happened in the trial but there were clear irregularities in the allotment of 2G spectrum which we (CBI) pointed out with detailed evidence," A P Singh told TOI.

All key accused, were present for the verdict at the Patiala House courtroom, which has been the scene of high drama and stunning revelations since November 2011, when the trial in the main 2G suit began.

The court directed all persons acquitted in the case to furnish a bail bond of Rs 5 lakhs each to ensure their presence in a higher appellate court should the verdict be challenged in the future.

Others acquitted in the case are former telecom secretary Siddharth Behura, Raja 's erstwhile private secretary R K Chandolia, Swan Telecom promoters Shahid Usman Balwa and Vinod Goenka, Unitech Ltd MD Sanjay Chandra and three top executives of Reliance Anil Dhirubhai Ambani Group (RADAG) -- Gautam Doshi, Surendra Pipara and Hari Nair.

More at : 2G scam case: In shock verdict, court acquits A Raja, Kanimozhi and other accused - Times of India

 

[Shashank]

All I would like to say is that its a shame. I have serious doubt about current government is also involved in brushing this under the carpet.

 

[RATHORE]

All I would like to say is that its a shame. I have serious doubt about current government is also involved in brushing this under the carpet.

My first impression is that BJP has an understanding with DMK, who will likely come to power next in Tamil Nadu; and additionally, Subramanian Swamy, who is a notorious loose cannon and had been acting up for quite some time now, has finally been put in his place.

 

[Shashank]

My first impression is that BJP has an understanding with DMK, who will likely come to power next in Tamil Nadu; and additionally, Subramanian Swamy, who is a notorious loose cannon and had been acting up for quite some time now, has finally been put in his place.

I understand its due to the DMK support for next Lok Sabha and State assembly but deal with DMK might backfire for BJP. This is open and shut case of corruption and declaring everyone as non guilty will definitely change perception of many who were supporting this government for non corruption.

 

[RATHORE]

I understand its due to the DMK support for next Lok Sabha and State assembly but deal with DMK might backfire for BJP. This is open and shut case of corruption and declaring everyone as non guilty will definitely change perception of many who were supporting this government for non corruption.

Yea but what can they do. Between the two national parties, BJP is far less corrupt, and amongst all the Indian parties they may possibly be the ones most against corruption right now; but what good is any of it when they can't even pursue their legislative/ideological agenda?

The Indian public is arguably one of the most fickle electorates in the world. So then I suppose this is the cost of getting things done in Indian politics, still, I don't rule out the possibility of these people being conveniently disposed once they outlive their utility for BJP.

 

[RATHORE]

I understand its due to the DMK support for next Lok Sabha and State assembly but deal with DMK might backfire for BJP. This is open and shut case of corruption and declaring everyone as non guilty will definitely change perception of many who were supporting this government for non corruption.

Also, the game may be a bit more complex than I originally thought; BJP originally tried merging the two factions of AIADMK and wanted to work with them (and Rajnikanth), but they weren't doing what the BJP asked and couldn't even get along amongst themselves. It's possible that this is all a temporary power play to turn the screws on them and get them to play ball, and once AIADMK starts doing BJP's bidding, BJP skewers the 2G Accused.

 

[Kalmuah]

Also, the game may be a bit more complex than I originally thought; BJP originally tried merging the two factions of AIADMK and wanted to work with them (and Rajnikanth), but they weren't doing what the BJP asked and couldn't even get along amongst themselves. It's possible that this is all a temporary power play to turn the screws on them and get them to play ball, and once AIADMK starts doing BJP's bidding, BJP skewers the 2G Accused.

dont forget DMK is the one who brought down Congress. If BJP after this verdict join hands with DMK trust me BJP is 100% losing 2019

 

[RATHORE]

dont forget DMK is the one who brought down Congress. If BJP after this verdict join hands with DMK trust me BJP is 100% losing 2019

It certainly wouldn't be a public alliance. I'm talking about a secret marriage of convenience. But that's one of my two possible theories, I think it's also possible that BJP is temporarily using DMK to put pressure on AIADMK, since EPS-OPS are too busy fighting each other to do the BJP's bidding.

By the way, long time no see, how have you been Kalmuah? Also, it's been a long time since we discussed this, and quite a bit has happened, so what do you think about BJP in Bengal now?

 

[Kalmuah]

It certainly wouldn't be a public alliance. I'm talking about a secret marriage of convenience. But that's one of my two possible theories, I think it's also possible that BJP is temporarily using DMK to put pressure on AIADMK, since EPS-OPS are too busy fighting each other to do the BJP's bidding.

By the way, long time no see, how have you been Kalmuah? Also, it's been a long time since we discussed this, and quite a bit has happened, so what do you think about BJP in Bengal now?

Public or Private BJP should not forget that it was not just modi's development but congress's scam allegation which gave them a majority vote. If after 3.5 yrs BJP couldn't do anything, then on what basis will they be fighting against Congress in 2019? not much active here mate, been active in the whatsapp group though, BJP bengal is still a far fetched dream if only modi could prosecute sharada scam people, we could have seen something.

 

[RATHORE]

if only modi could prosecute sharada scam people, we could have seen something.

How much of a difference would that make? From what I've seen, it seems like the people of Bengal know the TMC is corrupt, but they seem to vote for it anyways. I had heard that with Mukul Roy joining BJP, BJP's organizational and grassroots strength would be improved and they would finally have a high caliber strategist within Bengal. And I've also been reading that BJP is looking to bring in leaders from other parties like the Adhikaris, Adhir Ranjan Chowdhury etc. What's the word on the ground over there, does it seem like more major defections could be imminent?

 

[Kalmuah]

How much of a difference would that make? From what I've seen, it seems like the people of Bengal know the TMC is corrupt, but they seem to vote for it anyways. I had heard that with Mukul Roy joining BJP, BJP's organizational and grassroots strength would be improved and they would finally have a high caliber strategist within Bengal. And I've also been reading that BJP is looking to bring in leaders from other parties like the Adhikaris, Adhir Ranjan Chowdhury etc. What's the word on the ground over there, does it seem like more major defections could be imminent?

I am not sure how much mukul roy can influence bengal politics now, but if he can build a team, its going to pay off for BJP. My SWOT analysis on BJP (Bengal unit)

+=================+======================================+===========================+============================+
|    Strength     |               Weakness               |        Opportunity        |           Threat           |
+=================+======================================+===========================+============================+
| 1. Central govt | 1. Zero PR                           | 1. No other opposition    | 1. TMC goons capture booth |
+-----------------+--------------------------------------+---------------------------+----------------------------+
| 2. Huge budget  | 2. No proper CM face                 | 2. Sharada & Narada Scams | 2. MB very good orator     |
+-----------------+--------------------------------------+---------------------------+----------------------------+
| 3.Mukul roy     | 3. Lack grassroot level organisation | 3. Anti-incumbency        | 3. Strong regional support |
+-----------------+--------------------------------------+---------------------------+----------------------------+
|                 |                                      | 4. Rise of RSS/Bdal Camps |                            |
+-----------------+--------------------------------------+---------------------------+----------------------------+

 

[Shashank]

https://twitter.com/x/status/961264802105647105

 

[RISING SUN]

MCA gets first breakthrough in large cash deposits by 4 shell cos after demonetisation
The Ministry of Corporate Affairs (MCA) has got a breakthrough in its investigation of shell companies depositing large amounts of cash in banks, following demonetisation.

Four Maharashtra-based companies admitted to investigators that were just ‘shell’ entities used as a front to deposit Rs 450 crore in cash. These four companies mainly dealt in items on which no tax, not even GST, had to be paid.

Some of these entities used misleading names to convey the impression that they dealt in stocks or commodities but had no relationship with those businesses. The investigators too admitted they did not know what business these companies were into.

For instance, GreatGains Stock Trading Pvt, which has no relation with the broking or stock advisory business, deposited Rs 99 crore in cash. Jubilant Mechantile Pvt admitted to laundering around Rs 98 crore, Lavender Impex Pvt around Rs 90 crore and StarBright Pvt about Rs 95 crore.

During the investigation, company directors admitted to ‘being on board just for the money’, sources told Moneycontrol.

During the probe, MCA found that over 100 companies had funnelled cash through these firms. Sources said many listed companies are also associated with these four shell companies. The cash was deposited in banks and subsequently withdrawn within a few days, the sources said.

The ministry is confident of proving that at least 68 shell companies have abetted money laundering, sources said. Of these 68 companies, 49 firms deposited less than Rs 100 crore, and the remaining companies deposited cash over Rs 100 crore. The 49 companies are being investigated by Registrar of Companies while firms that accepted cash deposits of more than Rs 100 crore are being investigated by the Serious Fraud Investigation Office.

Sources said the SFIO and Registrar of Companies were in the final stages of completing its investigation. “Officials from RoC's western region have already completed their investigation into these 4 companies. Now it depends on other investigation agency to proceed with these companies,” a source said

A large number of corporate entities that were deregistered following demonetisation have not returned to claim their bank deposits worth Rs 37,500 crore, an official in the Ministry of Corporate Affairs said.

Under Section 248 of the Companies Act, close to 3 lakh companies were deregistered by the government for not complying with regulations. Most of them just existed on paper and were conduits for evading taxes or laundering money. MCA has granted time to these companies to comply with its rules for their status to be restored to active. Till such time, they would not be able to access their deposits.

The Ministry is also planning to strike off an additional 2.25 lakh companies and has already issued notices for the same, sources said.

Moneycontrol tried to contact these companies to verity this story. However, till the time of publishing, we were yet to receive their responses.
MCA gets first breakthrough in large cash deposits by 4 shell cos after demonetisation