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Black Money in India
It is absolutely true that black money generated and accumulated by Indian businessmen and bribe money earned by servicemen and politicians are mostly parked in Indian banks or invested in landed property. Bribe, graft, kickback etc are mostly used to purchase landed property. This is why landed property worth Rs.100 lacs is actually registered at value of hardly 25 lacs in the office of Registrar.
One can say without any hesitation that black money generated in India in a day is at least equivalent to total value of property sold or bought in India in a day at various offices of registrars. Further to add fuel to fire, value addition in black money is far greater in India than any other country because of greater rate of interest in Indian banks compared to what is prevalent in foreign banks. Value of landed property, gold, silver etc invariably rises year after year at rate more or less equal to interest rate.
This is open secret and every land owner knows that actual sale value is at least twice the value at which it is registered. Black money generated through illegal transactions in India is used in real estate sector and then in gold, silver, diamond, share market or in commodity market. It is further converted into number one money either by creating more and more fake files, fake firms and fake transactions or fictitious export and import .Black money generated at foreign centers is either parked in foreign banks or routed back in India through Mauritious like countries.
This is really the big reason why price of landed property is increasing year after year and has really gone beyond the reach of common men. This is the reason that turnover volume has been consistently rising in stock and commodity market .Similarly prices of gold and silver have gone beyond the reach of common men. People who have black money easily hide the same by purchasing gold ornaments or that of silver and diamond. Government is willfully promoting rise in price in real estate sector and in return their party members get considerable financial help in contesting election and earning wealth for their family.
To add fuel to fire, government has given all types of tax exemption to those who buy house or who avail home loan due to which most of the rich corporate houses and rich individuals have become builders of the town and use this opportunity to convert all ill earned money or black money into number one money.
It is ironical that Doctor Manmohan Singh the great economist, Expert Finance Minister Mr. Pranab Mukherjee and Ex Finance Minister Mr. P. Chidambram willfully allow unprecedented benefits on purchase of home of whatsoever value it may be. All such tax benefits ultimately go in the hands of rich people. Unfortunately all such promotion to black money takes place in the name of common men, in the name of GDP growth and in the name of development. At the same time these people shed crocodile tears on Black Money and pretend to take against who are tax evaders. As such it is not exaggeration to say that black money produced in Indian economy and parked in India is many times more than the total amount of black money said to be parked in Swiss bank or in other in foreign banks. And growth rate of black money is also greater than that of GDP growth or inflation rate.