Black Money.

What is ‘Black Money’?

Black money is:

• the currency used in ‘black economy’.

• the proceeds, usually received in cash, from underground

economic activity.

• earned through illegal activity and, as such, is not taxed.

Fact: Once the huge amount of black money and property comes back to India , the
entire foreign debt can be repaid in 24hours.
 Sources of ‘Black Money’.
• Gambling
• Undervaluation of Asset and Over Valuation of Liabilities
• False Income Statement
• Drug trafficking
• Weapons trading
• Terrorism
• Selling counterfeit or stolengoods
• Selling pirated versions of copyrighted items such as software and musical
recordings and
• Through any other act forbidden bylaw.

Fact: After paying the entire foreign debt from retained black money, we willhave
surplus amount, almost 12times larger than the foreign debt.
 Movement of ‘BlackMoney’.

To be at a safer side the recipients of the black

money moves their black income by using the
following two sources:
• By Hawala system.
• Depositing in SwissBank.

Fact: If the surplus amount after retaining the black money is invested, theamount
of interest earned will be more than the annualbudget of the Central government.
 Hawala System.

Hawala:
• also known ashundi
• origins in classical Islamiclaw
• an informal value transfer system
• based on the performance and honour of a huge networkof
money brokers.
• no promissory instrument

Fact: After retaining black money even if all the taxes are abolished, then alsothe
Central government will be able to maintain the country verycomfortably.
 Swiss Bank.
• 1854 - Swiss BankCorporation(SBC).

• 3rd largest in Switzerland with over 300 billion CHF(Converted Swiss

Francs) of assets and 11.7 billion CHFof equity.

• 1998 - SBCmerged with UBS, the largest bank in Europe and the 2nd
largest bank in the world.

• The company's logo - three keys - “Confidence, Security and

Discretion“.

Fact: If the black money is retained the Government will have enough money to run
the country for 30 years.
 ‘Black money’ and Corruption.
• Black money & Corruption are two sides of the same
coin.

• Dishonest Industrialists, Scandalous Politicians and

corrupt officials have deposited in foreign banks in
their illegal personal accounts a sum of about
$1500 billion.

Fact: If the total Black Money is recovered then every Indian can have one Tata
Nano car and every new born baby can be gifted with the same for next 1 year.
Top 5 countries generating ‘Black Money’.

INDIA $1,456 BILLION (NEARLY76,00,000/- CRORES)

RUSSIA$470 BILLION
U.K. $390 BILLION
UKRAINE $100 BILLION
CHINA$96 BILLION

Fact: If black money is brought home and added to our GDP of Rs 55 lakh
crore our new GDP would become Rs 363 lakh crore, we will become
No. 2 after USA in terms of GDP.
 Total ‘Black Money’ in economy?
• Swiss bank revealed India has more money than rest
of the world.
• The second highest, Russia has 4 times lesser black
money as compared to India.
• U.S. is not even there in the counting in top
five.
• India has more money in Swiss banks
than all the other countriescombined.
 Top 5 scams in India.

•2G Spectrum Scam.

•Commonwealth Games Scam.
•Telgi Scam.
•Satyam Scam.
•IPLScam.
 2G Spectrum Scam.

• Known as India’s biggest scam.

• Person responsible was telecom minister Mr.
A. Raja.
• Evaded norms at every level and gave
fictitious licenses.
• Amount involved in the scam: 1.76lakh
crores.
 Commonwealth Games Scam.
Indians hang their head in shame on globalfront.
Revelations by the Central vigilancecouncil:
• Discrepancies in tenders.
• Payments to non-existing parties.
• Willful delays in execution of contracts.
• Over inflating price of sportsequipment.
• Misappropriation of funds.
• Person responsible: Mr. Suresh Kalmadi.
• Amount involved in the scam: Rs. 35000crore.
 Telgi Scam.
• Abdul Karim Telgi mastered the art ofpreparing
fake stamp papers.
• Sold them to various banks and other financial
institutions.
• These stamps were sold across 12 states.
• Various government departments were involved
in the scam.
• Person responsible: Abdul Karim Telgi.
• Amount involved in the scam: Rs. 20000crore.
 Satyam Scam.
The scam that shattered the investors:
• The books of accounts were fudged.
• Scam took place for more than a decade.
• Revenues and profits were inflated.
• Shareholders were kept in the dark.
• Biggest corporate fraud.
• Person responsible : Mr. Ramalingam Raju.
• Amount involved: Rs. 14000 crore.
 The IPL Scam.
The Shame behind entertainment:
• The Indian Premiere League(IPL) was
considered as the best form of entertainment
in the country.
• But slowly its darker sideemerged.
• IPLcommissioner Mr. Lalit Modi and external
affairs minister Mr. Shashi Tharoor were the
persons involved.
• Claimed to have stakes in many IPLteams.
 Major reasons for generation of‘Black Money’.

• High rates of taxes.

• Complicated Tax-laws.
• Numerous controls, licenses and other governmental
regulations.
• Lack of control by the government.
• Lack of awareness among public.

Fact: Total black money of Indians in other tax haven countries (60 countries)
F ac t:
is Rs 158 lakh crore. total black money of Indians outside In d i a (100+158) is
Rs 258 lakh crore.
 Consequences of ‘Black Money’.

• Poverty.
• Inflation.
• Reduces Development.
• Illegal transfer of funds from India toother
countries.

Fact: In India more than 450 million people live below the poverty line.
 Measures to be taken to reduce ‘BlackMoney’.

• Amnesty Scheme by the govt.

• Simplify/Rationalize tax laws.
• Reduce red tapism.
• Use technology for economic intelligence.
• Co-ordination with other countries.
• Stringent laws to curb moneylaundering/corruption.
• Creation of awareness among students on the evil ofblack money.
• Regulation on election spendings and donation to politicalparties/
organizations.

Fact: Every year almost 80000 people travels Switzerland. Out of these around
25000 travels frequently. Those who travel frequently might be travelling for some
reasons, this should be investigated.
 Conclusions.

Black money has created a big black hole

in Indian economy & the entire burden is
beared by the common people of India.

To stop corruption which creates black money,

we the people of India have to come forward
to fight againstcorruption.
Thank You.
Presented By-
M.Deepak
II-BZC