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KALA DHAN: TAKE BIRTH AND GROW IN INDIA CORRUPTION IS ONE OF THE REASON FOR CREATION OF INDIAN BLACK MONEY

 
 
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KALA DHAN: TAKE BIRTH AND GROW IN INDIA CORRUPTION IS ONE OF THE REASON FOR CREATION OF INDIAN BLACK MONEY
by System Administrator - Friday, 1 April 2016, 11:59 PM
 
By : M.S.Yatnatti: Editor and Video Journalist Bangalore : Total computerization and ERP adoption and online government is first step towards making a Corruption-Free Government and Governance .Reportedly Kala Dhan is created by the people who do not pay tax for their earnings and eventually it take birth in India and grow in India . So question of bringing it from outside does not arise and it is alleged that balk money exists in all part of the world. .In India, Black money refers to funds earned on the black market, on which income and other taxes have not been paid. The total amount of black money created in corruption deals is unlimited and quantum is unknown. Effective and credible deterrence is necessary in combination with reforms, transparency, simple processes, elimination of bureaucracy and discretionary regulations. Credible deterrence needs to be cost effective, claims the report. Such deterrence to black money can be achieved by information technology (integration of databases), integration of systems and compliance departments of the Indian government, direct tax administration, adding data mining capabilities, and improving prosecution processes. Time is ripe for political parties taking sincere approach on such issues. The irony is that the politicians and their crony capitalists have the bulk of the black money which they liberally use during the elections when the Election Commission and other bodies remain helpless. The elections in the country have down-graded to battle of money-muscle power. Reportedly the money that is siphoned off in scams is no doubt large but the money made in petty corruption is not smaller though they are not stashed abroad. The money made through corruption starting from driving licence, MNREGS, PDS system, subsidies, public procurement, bribing lower staff to push files, paying money to taxmen for getting their returns scrutinized and securing genuine refunds, real estate registration, bribing the cops for traffic and other violations and so on hit hard the common man most and stunts economic development. The parallel economy, which could be as much as 50 per cent of GDP contributes greatly to inflation, delay in decision making and at times stalls development activities because some vested groups are not able to make money. Reportedly Corruption in India is a major issue that adversely affects its economy. A study conducted by Transparency International in year 2005 found that more than 62% of Indians had firsthand experience of paying bribes or influence peddling to get jobs done in public offices successfully.In its study conducted in year 2008, Transparency International reports about 40% of Indians had firsthand experience of paying bribes or using a contact to get a job done in public office.In 2015, India was ranked 76th out of 175 countries in Transparency International's Corruption Perceptions Index, compared to its neighbors Bhutan (30th), Bangladesh (145th), Myanmar (156th), China (100th), Nepal (126th), Pakistan (126th) and Sri Lanka (85th). This is the second least corruption rank for India in the whole of South Asia.In 2013, India was ranked 94th out of 175 countries.In 2016, India was ranked 76th out of 168 countries in Transparency International's Corruption Perceptions Index Black money in Indian elections: According to reported studies, the 2014 general election was the most expensive election in Indian history,reportedly with a massive Rs. 30,000 crores spent by the government, political parties and candidates. As numerous loopholes and lack of transparency mar the current election finance system in India, candidates and parties are able to raise and spend money without making any declarations as to the sources. There is a need to take comprehensive steps and corroborate financial information received for both parties and candidates from various sources, in order to ensure transparency and accountability in raising and spending money, says a report .It is evident that the current regulatory mechanisms are not enough to put a check on the growing influence of black money in elections. There is a need to take comprehensive steps and corroborate financial information received for both parties and candidates from various sources. In one of the steps taken by the Commission, it has made it mandatory for all candidates to list their movable and immovable assets in the affidavits submitted to the Commission. Even though the candidates declare their assets, the legitimacy of the declarations has always been under the scanner with no provision for information for sources of income and massive underreporting and undervaluing of assets being commonplace. Reportedly the menace of black money cannot be curbed by the limited initiatives of the ECI alone. It is important that a detailed analysis is done on how the provisions of RPA can be made more harmonious with the other financial rules and regulations. This would include looking at the IT Act, the Wealth Tax Act, the Companies Act, the Foreign Exchange Management Act (FEMA), the Prevention of Money Laundering Act, Banking Regulations Act, and Cooperative Society laws and audit standards, so that hidden and illegal funds of parties and candidates can be tracked. Reportedly Rs 12,000 cr a year black money is created in quota: 25,000 MBBS, PG seats at: It is pertinent to note that you would never find advertisements for “confirmed admission“ to any IIT or AIIMS, Delhi or one asking you to book a seat in advance in any of these premier institutes. Neither are there advertisements promising you selection for the civil services or placement in an all-India service of your choice. Yet, the media is full of ads for MBBS seats in colleges across the promise “direct admission“?Behind this promise is a black market in medical seats in private colleges.With agents and college managements colluding to sell many of the 30,000-plus MBBS and over 9,600 postgraduation seats in private medical colleges, back-of the-envelope calculations by few experts suggests that about Rs 12,000 crore in hard cash changes hands in this black market every year. Of the 422 medical colleges in India, 224 are private, accounting for 53% of MBBS seats. The going price for an MBBS seat could range from almost Rs 1 crore in some colleges in Bangalore to as low as Rs 25-35 lakh in some not-so-well-established colleges in Uttar Pradesh. The prices could escalate or drop depending on how early you approach a college for a seat. If you book in advance, you could get a discount! Consortia of privately managed colleges and deemed universities that run medical colleges claim to conduct their own entrance examinations to take in students strictly on merit. However, in state after state, the exams have been exposed as a farce with students who pay money to buy seats being accommodated whether they appear for the exam or not and no matter what they score.MD seats vary widely in terms of the price they fetch in this market. Disciplines such as radiology and dermatology fetch over Rs 2 crore each, with some centres getting even Rs 3 crore for a seat.The bulk of the money is paid in cash, leaving no trace of the transaction. And despite the advertisements giving the game away , the government has not cracked down on this black market or taken steps to arrest the rot in the medical education system.