1. Why Mohandas Pai thinks Modi govt’s black money strategy is a ‘joke’: Top 10 noteworthy points

Why Mohandas Pai thinks Modi govt’s black money strategy is a ‘joke’: Top 10 noteworthy points

Former Director of Infosys T V Mohandas Pai today said the Narendra Modi government black money strategy is a 'joke'. Here we list the top 10 noteworthy points Mohandas Pai said about black money in India and why he considers government's efforts to crack down on it a 'joke':

By: | Hyderabad | Published: December 9, 2015 3:53 PM

Former Director of Infosys T V Mohandas Pai today said the Narendra Modi government’s strategy to unearth black money is a ‘joke’. Here we list the top 10 noteworthy points Mohandas Pai, currently chairman of Manipal Global Education Services (he was a member of the Kelkar Committee on reforming direct taxes),  said about black money in India and why he considers government’s efforts to crack down on it a ‘joke’:

1. Calling it (not having an effective strategy to unearth black money) a ‘big failure’ of the Narendra Modi government, Mohandas Pai said better intelligence and prosecution are needed to achieve the objective as the present law is ‘unworkable’, Mohandas Pai said.

2. “Tax terrorism has not come to an end in the country even though Finance Minister Arun Jaitley continues to say that it’s stopping,” Mohandas Pai said.

3. “The whole black money strategy has been a joke. The law (to unearth black money) is badly drafted and it is unworkable. Nobody will pay 60 per cent tax to stay in this country. And secondly, your black money action should be based on better policy and better intelligence,” Mohandas Pai said.

4. “It (the government) does not have super intelligence yet. It does not have superior prosecution capabilities, and unless they get better intelligence, they are able to prosecute better, they set up fast track courts, things are not going to work,” Mohandas Pai said.

5. “Black money is not waiting in foreign banks for you to go and get information and do. There are sophisticated structures; government should find out what these structures are, who is doing it and how it’s being done,” Mohandas Pai said.

6. “There is a lot of corruption in the ports. They must set up special investigation teams, appoint special prosecutors, build up capacity, add special courts, try them (offenders) and put them in jail within six months…not five years or ten years. If you don’t do that, nothing will work,” Mohandas Pai said.

7. “It (tax terrorism) is still continuing at the grass-roots level. (Tax) disputes have gone up to unprecedented levels. They (the government) have to clean up the whole system; and that (tax terrorism) is stopping investments,” Mohandas Pai said.

8. Speaking on areas where the Government has not “done well” during 18-months in office, Mohandas Pai said it should work very closely with States because it’s where the action is; not at the Centre. “The Centre passes a policy and the States have to implement it…many of the States have become laggards,” he said.

9. “There should not be reservation anywhere and it should be on merit. There is nothing wrong if socially disadvantaged sections…if they get good education… they will do very well. We have tried to experiment in Bengaluru five-six years ago, it worked beautifully,” Mohandas Pai said.

10. “Reservation for the private sector is a bad idea. It’s a concept by failed politicians. Because they have failed in their work they want to make others suffer. That’s a bad concept,” Mohandas Pai said.

Infosys share price on NSE at 3.30 pm was Rs 1,036.40, down -13.60 points(-1.30%).

  1. Hemen Parekh
    Dec 29, 2015 at 7:22 am
    How to conquer Corruption ? There is only one sure - and superfast - way to get rid of corruption By introducing : * NEGATIVE MOTIVATION Putting behind bars ( - and right away ; not after 6 years ) , every corrupt fellow and immediately confiscating his ill-gotten wealth * POSITIVE MOTIVATION By abolishing Personal Income Tax and introducing Amnesty Scheme , incentivize # converting of black money into white # acceptance of all payments thru official channels As far as providing " Negative Motivation " is concerned , I had sent following suggestion to our Hon Prime Minister / Finance Minister / other Ministers / Secretaries etc , on 4th Nov 2015 : # INTERNET OF THINGS ( IoT ) As each currency note of Rs 500 / 1000 , is getting printed , embed it with microscopic RFID chips ( with this , current cost of a RFID chip will fall from 50 paise to 5 paise ) Besides communicating with each other , these chips will also transmit their existence location , through internet , to cloud-based servers of Income Tax Department This will form a " NETWORK OF CURRENCY NOTES ( NoC ) " You may like to call this Internet of Currency ( IoC ) , a sub-set of IoT ! # IP ADDRESS SYSTEM ( IP V 6.0 ) Each Rs 500 / 1000 currency note must be igned ( at the time of printing ) , its own unique Internet Address , using IP V 6.0 This IP address should be linked with the unique Serial Number printed on each note. Since IP V 6.0 , will be capable of igning " 2 * 10 to the power of 128 ", no of IP addresses , there is no danger of running out of addresses , even if we decide to extend this idea to Rs 100 currency notes ! Here are the most important BYE - PRODUCTs : * No more possibility of fake / forged / counterfeit , currency notes * No thief would ever want to steal such currency notes which continuously announce their location * No one would want to make any " Cash Deal " . All payments will become official only ! * Plastic currency notes will last 10 times longer ! * Who will buy GOLD biscuits , using RFID embedded notes ? No need for PAN card ! * No giving / No receiving of bribes ! No disproportionate ets ! This reform will enable the Central Government / Income Tax Department , to : * Continuously trace the movement of each of these higher denomination currency notes * Instantly locate any place ( using Google Map based GPS ) , where there is an aculation of more than Rs 1 Crore worth of currency notes Such aculation will be made to appear as a TAG CLOUD on the web site of IT Dept, like thousands of balloons floating on a map of India , capable of being drilled down to within 1 Sq Meter ! Of course , visible only to IT officers ; not to general public ! On each balloon , will appear a number announcing , " Amount of Cash here - Rs " ! This will vastly simplify the task of Anti Corruption Dept / Enforcement Dept etc Of course , RBI will need to allow 6 month's time to the owners of current paper currency notes of Rs 500 / 1000 , to get these exchanged with new plastic notes before withdrawal of the old notes from circulation Implementation of this suggestion , does NOT require ping of any BILL in Lok Sabha or being held to ransom in Rajya Sabha ! And it can be implemented in India , within ONE YEAR But if Chinese President Xi Jinping comes to know about the practicality of this suggestion , he might implement it in 6 months ! How come ? Simple ! Xi Jinping has the political will ! And no historical baggage ! ------------------------------------------------------------------------------------------------------- hemen parekh 24 Dec 2015 ( Also read blog " CREATE WEALTH to CREATE JOBS " at , > Blogs )
    Reply
    1. Samir Shah
      Dec 9, 2015 at 7:43 pm
      Mohandas Pai, I thought was pretty smart to have run a company like Infosys, looks like that is not the case. This article tells it all.
      Reply
      1. N
        Narendra M
        Dec 10, 2015 at 10:09 am
        (1) Mr. Mohandas Pai has made many important observations on current topics and one of them is curbing generation of black or unaccounted money. Supreme Court in response to a peion had recently demanded that the Central government should place before it a report about actions taken by the government to curb generation of black money. Of course, this is easier said than done, as observed by Mr. Pai. (2) There is no sphere of our socio-economic activity which is not affected by use of black money. Corruption at lower and middle levels of bureaucracy is the biggest source of black money in India and all governments have found it difficult to curb corruption at those levels of bureaucracy. The Central government is helpless as without cooperation of all State governments nothing much can be done to rein in lower and middle levels of bureaucracy. For that to happen political and administrative will is required and that is the basic problem. No political party has shown such will as politics and particularly elections without black money are just not possible in our country. (3) It is an open secret in all elections (even Gram Panchayat elections these days) unaccounted money is very widely used, and except perhaps a very few candidates, everyone uses unaccounted money to fund election expenses. Hence, rules about audit of election expenses and of accounts of political parties, which exist only on paper, have to be seriously implemented. If this is done, it will be one of the biggest tax reforms to curb generation of black money, like never before and will be widely welcomed.
        Reply
        1. R
          Raj
          Dec 9, 2015 at 3:19 pm
          What has reservation to do with the meritorious businesses finding smart ways to avoid taxes? The political parties are themselves do not want their finances to be scrutinized and hence cannot convince anyone on giving their hard earned money to be stolen and stowed away in foreign banks and properties by the ruling party.
          Reply
          1. V
            vk
            Dec 10, 2015 at 1:35 pm
            Yes. He is saying right. PM should look into some of his points and make them work. Industrialists are more practical in some aspects.
            Reply
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