Note ban pain ending; move to help track black money holders: Jaitley

January 9, 2017

New Delhi, Jan 9: Finance Minister Arun Jaitley took to Facebook to convey to the countrymen about the virtues of demonetisation, announced by Prime Minister Narendra Modi about two months ago.

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Jaitley, replying to those raising doubts over the efficacy of demonetisation in eliminating black money, said the colour of funds would not change by merely depositing these in banks. The money had now lost its “anonymity” as it can be traced to the owner. “The fact that a large quantum of high denomination currency has been deposited with the banks does not render this money to be legitimate cash. Black money does not change its colour merely because it is deposited in the bank. On the contrary, it loses its anonymity and can now be identified with its owner.”

The comments came in the wake of sources saying that 94 per cent of the junked notes have come back into the bank accounts, casting doubts on the effectiveness of the demonetisation in checking black money.

The pains and inconveniences caused by the note ban were nearing its end, said the minister. “When 86 per cent of a country’s currency, constituting 12.2 per cent of its GDP, is squeezed out of the market and sought to be replaced by a new currency, there would obviously be significant consequences of that decision,” he said, adding that the queues outside the banks have disappeared and re-monetisation has moved ahead.

In a post, Demonetisation — A look back at the last two months, the finance minister said the money collected would be put it to more effective uses.

In the medium and long run, gross domestic product (GDP) would be bigger and cleaner, he said two days after the Advance Estimates put out by the Central Statistics Office projected the economy to grow slower at 7.1 per cent in the current financial year, against 7.6 per cent in the previous financial year, before factoring in the impact of the demonetisation. Economists have pegged growth in the current financial year to be lower than 7.1 per cent.

Ahead of the Budget, the finance minister said when the Centre and the states were able to collect more tax from tax dodgers, they would be in a better position to collect less tax from others.

He also attacked the Opposition, particularly Congress Vice-President Rahul Gandhi. “The difference between Prime Minister Narendra Modi and Rahul Gandhi was clear — the Prime Minister was thinking of the next generation while Rahul Gandhi was only looking at how to disrupt the next session of Parliament.”

The Revenue Department, he said, would be entitled to tax this money. “In any case, the amendment to the Income Tax Act itself provides that the said money, if voluntarily declared or if involuntarily detected, would be liable for differential and high rates of taxation and penalty.”

A large amount of cash with banks will lead to lower interest rates, said the minister. Leading banks have announced cuts in lending rates.

"The banks today admittedly have a lot more money available in order to lend for growth. Since this money constitutes low-cost deposits with the banks, it is bound to bring down the rate of interest. Both these things have already happened," he added.

Top quotes of Arun Jaitley's take on two months of demonetisation:

• The Prime Minister is now speaking of cleaning the political funding systems. His opponents want a cash dominated, cash generating and cash exchange system to continue

• All reforms are disruptive. They change the retrograde status quo

• It is a tragedy that a national party like the Congress decided to adopt a political position, opposing technology, change and reforms

• Reducing cash may not eliminate crime and terrorism but it can inflict a serious blow on them

• Expenditure required for poverty eradication, national security and economic development have to be compromised with on account of tax non-compliances

• Paper currency is a zero-interest anonymous bearer bond

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News Network
April 15,2024

New Delhi: India is likely to experience above-normal cumulative rainfall in the 2024 monsoon season with La Nina conditions likely to set in by August-September, the IMD has said on Monday.

However, normal cumulative rainfall does not guarantee uniform temporal and spatial distribution of rain across the country, with climate change further increasing the variability of the rain-bearing system.

Climate scientists say the number of rainy days is declining while heavy rain events (more rain over a short period) are increasing, leading to frequent droughts and floods.

Based on data between 1951-2023, India experienced above-normal rainfall in the monsoon season on nine occasions when La Nina followed an El Nino event, India Meteorological Department chief Mrutyunjay Mohapatra told a press conference here.

Positive Indian Ocean Dipole conditions are predicted during the monsoon season. Also, the snow cover in the Northern Hemisphere is low. These conditions are favourable for the Indian southwest monsoon, he said.

Moderate El Nino conditions are prevailing at present. It is predicted to turn neutral by the time monsoon season commences. Thereafter, models suggest, La Lina conditions may set in by August-September, Mohapatra said.

India received "below-average" cumulative rainfall -- 820 mm compared to the long-period average of 868.6 mm -- in 2023, an El Nino year. Before 2023, India recorded "normal" and "above-normal" rainfall in the monsoon season for four years in a row.

El Nino conditions -- periodic warming of surface waters in the central Pacific Ocean -- are associated with weaker monsoon winds and drier conditions in India.

Three large-scale climatic phenomena are considered for forecasting monsoon season rainfall.

The first is El Nino, the second is the Indian Ocean Dipole (IOD), which occurs due to differential warming of the western and eastern sides of the equatorial Indian Ocean, and the third is the snow cover over the northern Himalayas and the Eurasian landmass, which also has an impact on the Indian monsoon through the differential heating of the landmass.

The southwest monsoon delivers about 70 percent of India's annual rainfall, which is critical for the agriculture sector. Agriculture accounts for about 14 percent of the country's GDP.

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News Network
April 9,2024

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The Delhi High Court rejected Chief Minister Arvind Kejriwal's plea challenging his arrest by the Enforcement Directorate (ED) and remand order passed by the trial court in connection with the excise policy case. The court delivered the verdict in the excise policy case on Tuesday.

In its order, the high court said the petition challenged the arrest and said it was in violation of Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA). "The court clarifies that the plea is not for bail but for declaring the arrest illegal," Bar and Bench reported while citing the court order.

The high court said the material collected by the ED “reveals Arvind Kejriwal conspired and was actively involved in use and concealment of proceeds of crime." 

“The ED case also reveals that he was involved in his personal capacity as well as convenor of AAP," the order said.

Kejriwal had earlier questioned the timing of the arrest that came just ahead of the Lok Sabha Elections 2024.  Reacting to this, the court said, “Petitioner has been arrested in money laundering case and court has to examine his arrest and remand as per law irrespective of timing of elections."

Reacting to Kejriwal's argument casting doubt on the statements of “approvers" in the excise policy case, the court said the statements of “Raghav Magunta and Sarath Reddy are approver statements which were recorded under the PMLA as well as Section 164 CrPC".

“To cast doubt on the manner of recording statement of approver would amount to casting aspersions on the court and judge," the order added. “The law of approver is over 100 years old and not one year old. It cannot be suggested that it was enacted to implicate the present petitioner (Kejriwal)," it added.

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News Network
April 16,2024

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New Delhi:  Twenty-nine Maoists, including a senior rebel leader - Shankar Rao, who had a bounty of ₹ 25 lakh on his head - were killed by security forces during an encounter in Chhattisgarh's Kanker district on Tuesday afternoon. A huge quantity of weapons, including Ak-47 and INSAS rifles, were recovered. 

Three security personnel were injured in the gunfight, which took place in forests near the village of Binagunda after a joint team of District Reserve Guard and Border Security Force were attacked.

Two of the three injured are from the BSF. Their condition is stable but the third - from the DRG - is in critical care. All three received treatment at a local hospital and are to be shifted to a larger facility.

Sources said the fighting began at around 2 PM, when a joint DRG-BSF team was conducting an anti-Maoist operation. The DRG was set up in in 2008 to combat Maoist activities in the state, and the Border Security Force has been deployed extensively in the area to for counter-insurgency ops.

There was another encounter in the district last month, in which two people - a Maoist and a cop - were killed, and security forces recovered a gun, some explosives, and other incriminating materials.

Personnel from the DRG and Bastar Fighters, both units of the state police force, with the Border Security Force, were involved in that operation, officials told news agency PTI. The patrolling team was cordoning off a forested area when fired on indiscriminately, leading to the gun battle.

In November last year, while the state was voting in the first phase of an Assembly election, a gunfight broke out between security forces and Maoist rebels in the same district.

An Ak-47 rifle was recovered from the encounter site.

On the same day, while polling was taking place, Maoists fired at DRG personnel deployed near a polling station in Banda in Dantewada district.

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