“When God closes all
the doors…
He leaves a window open”.
All
the Opposition political parties and politicians who were protesting
demonetisation for over a month must feel like fools now. If anyone has the
slightest feeling they were protesting over long queues or anyone suffering –
then they should get rid of that notion. An entire session of parliament was
wasted because of these protests. Those parties who were protesting because
they thought their excess black money will go up in flames can now relax. They have been bailed out through
magnificent black-holes in the demonetisation policy. Here is the essence
of this:
Political parties can
deposit ANY AMOUNT of cash they claim to be holding and collected prior to
November 8, 2016.
The “suspect” barrier of 2.5 lakhs
DOES NOT apply to them as it does to other citizens and entities.
Now,
that isn’t just a loop-hole. It is a
massive BLACK HOLE in the demonetisation system. For those who thought some
new laws were made or policy statements issued on December 16, they are wrong. Nothing new was done on December 16.
The facts with respect to political party finances remain unchanged. These
rules and laws are:
#
Political parties are exempt from income tax.
#
Political parties can collect cash donations up to 20000 without having to
disclose names of donors through “coupons” or simple cash receipts.
#
Political parties are liable file IT returns and returns with EC. They are also
liable to be scrutinised by both these authorities in case of fraudulent
donations.
Some
people grandly claim on Social Media that Modi-supporters are wrongly
interpreting some statements by Finance Babus as being “new laws” or “new rules”.
To repeat NOTHING NEW was announced
on December 16. The only hole in demonetisation that got exposed on December 16
was this:
Yes
indeed. The black-hole is that political parties were assured by ModiSarkar and
their Babus that their black money is safe. They can deposit any amount with
them in old notes till December 30 and there is nothing to worry. So where do
these political black money hoarders benefit? Here is how:
#
For ordinary folks, any deposit of old
notes over 2.5 lakhs that does not match with regular IT returns and pattern of
income will be scrutinised and penalties levied if found to be black money.
#
This condition DOES NOT apply to
political parties. That being so, the scrutiny of political party deposits will
be merely at the whims of GOI and the IT guys.
Now,
you and I know there has hardly been a case where a political party has been
raided or penalised by IT department for hoarding black money. This report by
Timesnow on December 16 quoting an ADR report on Congress cash donations should
tell you a story:
That pattern could be true
to a large extent for most political parties even during the period 2013 to
November 8, 2016.
After all, political parties are the biggest beneficiaries and also the
root-cause for black money and corruption in the country. This tweet by Reuters
is just one piece of information that was reported meaninglessly without any
chain attached to it:
Now,
where is the need to even clarify that
by the media or any dumb Babu? Since the notes were illegal post November 8
is it not obvious that collections only up to November 8 can be deposited or
that no old notes should be accepted after November 8? But is that actual
practice? NO! It is not. That’s how clever politicians are. Now, this deadline
can work only and only if one question can be answered:
Have all political parties
declared their stocks of cash as at midnight November 8? Was it mandatory for
parties to declare their cash holdings to IT or EC by November 9 evening? NO!
That
is the second escape route. First was no 2.5 lakh limit (as with ordinary
people and entities) for scrutiny and second,
no declaration of cash holdings as at November 8 by these parties was sought. Fantastic!
So,
legally the IT will scrutinise a political party deposits on WHAT BASIS? NOTHING! Supposing a political party
which had a deposit pattern of only cash collections of 10 crores per month
suddenly deposits 300 crores on or before December 30, what will the IT or EC
do? NOTHING! What CAN they do? NOTHING!
What will GOI do? NOTHING.
Even
if the November 8 deadline were to be religiously followed, remember that
political parties can collect cash up to 20000 from unknown, unnamed
individuals through a coupon or receipt LIMITLESSLY. In other words, I can show
a collection of 200 crores from October to November 8 (or even July to November
8, if you like) through coupons and back-dated receipts showing 20K received from thousands of unknown individuals in
OLD notes. And then I deposit these notes into the bank by December 30. Who
will question me and why? In fact, as a political party, I can go one better. I
can even LAUNDER black money for others. This is an instant rough example I
gave but you and I can refine it even more but it’s not necessary. You can
refine this to be flawless and so can I:
Political
parties have experts in “Cooking”
books. Oftentimes, even their friendly IT official will teach them (or anyone) how
to treat transactions in books. Politicians and political parties are the LEAST SCRUTINISED by IT because they
are exempt from tax and any govt of the day protects other political parties
and politicians. There are rare cases of disproportionate assets of “individual”
politicians (Mulayam, Mayawati, Late Jayalalithaa etc) but those were more
politically-driven than by IT or law-driven. Thus, our courts have exonerated
each of these politicians named.
So
why were the political parties up in arms and ranting so much against
demonetisation. Were these people seriously bothered about ordinary folks in
queues or ATMs or any deaths or farmers? NO! Not at all! Because they were fooled into believing this:
That they will also be
subject to the same 2.5 lakh “scrutiny” barrier as any other individual or
entity. That they will also face hefty penalties like other folks. This fear
led them to believe their piles of black money will simply go up in flames.
That’s
the only reason they agitated. Else demonetisation doesn’t bother them in the
least. Hardships of common folks don’t bother them in the least. Farmer deaths?
Congi Karnataka has seen 450 plus farmer
deaths since April to October deaths this year? Does Pappu give a damn? No
he does not. Even the corrupt NDTV breathes a sigh of relief
for political parties based on FiniMin’s assurance that deposits by political parties WILL NOT be scrutinised. They
will only be gently quizzed.
Demonetisation
has had some positive effects. It has blunted terror-funding a bit. It has
blunted the counterfeit note business. It has exposed corruption in banks,
public systems and even in the RBI. So the GOI knows corrective actions
required if it is willing to take them. But demonetisation WILL NOT affect the
most corrupt in this country – Politicians and Political parties. And therein lies the rub!
So, what now PM Modi?
1. Since you so strongly
endorse a Cashless and Digital economy, is it not time you
outlawed cash donations to Political parties? Let there be only cheque or
digital donations to the parties.
2. Pass a law that undeclared
money and black money with political parties will attract same penalties as any
other individual or entity.
3. Pass a law that late
returns and fraudulent IT returns will attract the same penalties and
punishments as any other entity.
4. Bring political parties
under RTI. Don’t save your party or
any party. Show the people you mean business and want to see the end of
corruption in politics.
5. People trusted you with
the demonetisation wholeheartedly. They proved their willingness to fight corruption
in politics. It is time you kept your end of the bargain.