Currency Demonetisation and Future course of Indian Economy

Lilo · Post by **Lilo** » 11 Dec 2016 16:40

rahulm wrote: I went to a steel trader in Shiroda yesterday to buy some rods for my house. Told me to get lost when I asked if he has a swipe machine. He is from a certain Rajasthani mercantile community. Shop,opposite him is the same story.

This is an example of an originally buyer's market perverted to operate as a seller's market - just because certain tax avoiding groups can price out the competition & run the business as a cartel after the tax paying/law abiding competitors are decimated.
Now a law abiding customer(ex: a firm with extensive books to keep) is pulled into this black hole by being forced to pay in cash for products whose prices too are now jacked up to be just below the selling price+tax value.
Ineffect in each transaction, govt doesnt get a paisa of tax, the customer is still being ripped off by not being passed down the saved tax benefit - while the seller cartel keeps manipulating the market to the detriment of rest all players.

At the root of all this is the cash based blackmoney economy the sellers were enjoying for the past 60 years.

The shock therapy of DeMo followed by a prolonged cash scarcity pushing even the sellers to accept Cashless is necessary for the indian retail markets to become customer(hence product) oriented.

Hope GOI is not printing those 500Rs notes too fast too soon.
And keep the threat of DeMo 2.0 hanging over these 2K & 0.5K notes while giving exemplary punishments to the KalaDhanPatis(KDP) without a letup.

Unwavering determination is necessary. If cashless is in place by 2019 even those adversely affected by DeMo may be tempted to vote for Modi in 2019 - while grudgingly accepting the necessity of the actions of the govt.
Instead if there is only half hearted cashless by 2019 the Modi govt will not regain power.

rahulm · Post by **rahulm** » 11 Dec 2016 16:48

Let me clarify. I copped an earful when I asked about electronic payment options. Not just copped but was sneered at with a statement "hum (name of community deleted) hain aur hame business karna aata hai, aap must sikhao". Clearly, a lot,of,pent up anger. I chose brevity in posting and yes it's anecdotal.

rahulm · Post by **rahulm** » 11 Dec 2016 16:48

Duplicate detected and deleted.

RajeshG · Post by **RajeshG** » 11 Dec 2016 17:11

Rahul and Prahaar, theek hai, jaane do.

UlanBatori · Post by **UlanBatori** » 11 Dec 2016 17:29

Several anecdotes/rumors:
1. Nov. 8; right after NaMo speech: Devaswom top leadership phoned local temple authorities to do an immediate count of 500 and 1000-rupee notes, and report. Don't worry about other denominations. That froze the bright ideas next morning to do exchanges.
2. Gold/jewelry shops re-opened after mandatory 8 pm closing time and some stayed open until 6AM (illegal unless prior permission obtained from polis etc). LOTS of bijnej conducted. Misphortunately, CCTV cameras were on and recording. Some remembered to erase the tapes, but all now in trouble since gubrmand is asking for evidence on how they got so much gold etc.
3. Rumor is that 3 months ago, NaMo started practice of Mantris having to leave their mobile phones outside when going in for Cabinet Meetings. So no special suspicion when Mantris were asked to come in at 7:30 pm for meeting and had to leave their phones outside. Doors locked. Circa 8PM NaMo excused himself briefly. So 400% trustworthy, leak-proof Mantris stayed innocent. PM had already briefed President before going to cabinet meeting.
4. Total ban on printing any new 500 or 1000 notes before the event. Only 2000s were printed as a novelty, and posted on FB etc.
5. Lots of interesting schemes in progress/ already done to do swaps. Some caught, others escaped.
6. Cartoons galore. Lady with full red lips == Bank aphsar, counting new 2000-rupee notes rumored to have dissolving red color. Ppl ordering pizza, giving address as "standing in green shirt in queue outside XXX bank".
7. Bankers are part of scam: Many customers finding out when they eventually get to front of line that "they" have already withdrawn Rs. 25000 onlee for the week.

shiv · Post by **shiv** » 11 Dec 2016 18:06

rahulm wrote:Let me clarify. I copped an earful when I asked about electronic payment options. Not just copped but was sneered at with a statement "hum (name of community deleted) hain aur hame business karna aata hai, aap must sikhao". Clearly, a lot,of,pent up anger. I chose brevity in posting and yes it's anecdotal.

Interesting.

I have seen this attitude of "We know how to do business" even on BRF on this thread

prashanth · Post by **prashanth** » 11 Dec 2016 20:39

Suraj wrote:
prashanth wrote: And we keep wondering why there is a shortage of Rs 100 notes.
I've been saying that since the beginning Small denomination hoarding should be subjected to additional penalties because it hurts the mango man much more than hoarding 1000s does.

+108.
Added to that I think the govt should ensure that e-wallet, and mobile POS services are not crippled due to bad wireless telecom infrastructure. Today, I had to pay 'hard earned' INR 100 note to popular food outlet in Blur, when the mobile POS failed to complete transaction. Another customer returned packed and billed food since she didn't have cash. The street in Malleswaram is packed with street vendors selling trinkets, earthernware, clothes, footwear, flowers, fruits among other things. Many of them displayed paytm barcodes. Which means it's not like people are averse to using online/plastic currency. But the sloppy telecom services provided by telcos have failed us. How difficult is it to ensure basic and uninterrupted GPRS service? What is GOI doing about this?

jamwal · Post by **jamwal** » 11 Dec 2016 20:55

https://twitter.com/dhaakadtau/status/8 ... 1105303552

Modi dropping more hints about keeping tracks of leaks

jamwal · Post by **jamwal** » 11 Dec 2016 21:05

We use swipe machines often and have 2 of them, issued by a national level semi-sarkari bank. A few days after demonetisation announcement, the retards at bank blocked one of the machines citing excuse of low usage in previous month. Had to do a bit of maa behen to get the thing working again. Apparently demand for POS machines has gone up, their servers are getting overloaded and they are running around like headless chicken. Even after that, there have been intermittent issues with associated network with random outages, but nothing too serious. Most of this work is outsourced to some private companies and banks themselves have minimal involvement and in case of sarkari type banks, even less interest in sorting out problems being faced by customers. Technical support numbers are busy most of the times.

shiv · Post by **shiv** » 11 Dec 2016 21:19

prashanth wrote: But the sloppy telecom services provided by telcos have failed us.

Yeah this is an issue I'm facing too. I already have 5-6 SIMs in my name - used by various phamily members. Need to get one more from a different 4G mobile operator to see if anything changes.

ArmenT · Post by **ArmenT** » 11 Dec 2016 21:46

Prasad wrote:
JohnTitor wrote: The RBI should stop accepting counterfeit currency. This will stop banks from accepting them which in turn will push retailers and shop keepers to be careful. Further, it will also incentivize them to go cashless as it cuts down the risk.

I also feel the RBI should not accept defaced notes - I've noticed a lot of people seem to do basic maths and write on notes. This is plain disgusting and insulting. I have not seen this anywhere else in the world (excepting the Indian neighbourhood).
If a branch recieves a fake note, they have to destroy it right there. More than five notes = mandatory police report.

Pardon me for bringing this up, but if the fake currency notes are good enough to fool a shopkeeper, they could also potentially fool a harried bank teller, right?? Presumably these fake notes are good enough quality to pass a cursory check (please correct me if I'm wrong here). Do local bank branches have the facilities of the RBI to detect fake notes? What if the bank detects that a bunch of currency notes are fake well after they have been deposited? Are the tellers recording the serial # of every note deposited by a customer?

shiv · Post by **shiv** » 11 Dec 2016 22:00

ArmenT wrote:
Prasad wrote: If a branch recieves a fake note, they have to destroy it right there. More than five notes = mandatory police report.
Pardon me for bringing this up, but if the fake currency notes are good enough to fool a shopkeeper, they could also potentially fool a harried bank teller, right?? Presumably these fake notes are good enough quality to pass a cursory check (please correct me if I'm wrong here). Do local bank branches have the facilities of the RBI to detect fake notes? What if the bank detects that a bunch of currency notes are fake well after they have been deposited? Are the tellers recording the serial # of every note deposited by a customer?

Every bank that I have visited in Blore, Kerala and many bigger business establishments have automated or manual machines to detect fake notes

nandakumar · Post by **nandakumar** » 11 Dec 2016 22:14

Armen T
Your post reminds me of something that I experienced. One morning many years ago, I landed at my bank branch as soon as the branch had opened. The staff were just reporting in. I was standing in front of one of the counters to withdraw some money or do some other transaction, I forget what. Mind you, this was before the ATMs and other new fangled processes to do banking business. The lady staff who took her seat had an invocation before she started her work. She said in Tamil, " Appane Pillaiyarappa, kalla nottai kandu koduppa", meaning, "Oh Lord Ganesa, please help me spot counterfeit notes". I told her, that was an odd invocation for starting the day's work. She said that it happens all too frequently and when it is spotted it is too late and the employee in question has to make good the loss. I dont know the process in the bank. But it seems evident that the staff are ultimately responsible.

UlanBatori · Post by **UlanBatori** » 11 Dec 2016 22:28

Malloostan Opposition netas overheard at a wedding reception: "If the govt is determined to target carefully, they can find all the stashed money of the Left Front in the Co Op banks".

Wonder where the Kangress keeps its loot...

Prasad · Post by **Prasad** » 11 Dec 2016 23:00

Armen
My uncle says they use the counting machines which spot fakes. Manual spotting would be time consuming and unequal to the task one would think.

sanjayc · Post by **sanjayc** » 11 Dec 2016 23:05

Story filed by political editor of ABP News - It's in HIndi. i have translated. Looks like all hell will break loose on bank officials in Feb / March - Modi Govt. going soft on them till then as part of a plan

Modi Govt. has conducted sting operations at 500 bank branches

PM Modi has got sting operation done at 500 bank branches across the country. The CDs of the operation have already reached the Finance Ministry. Govt. is waiting for an opportune moment to act. According to sources, about 400 CDs have already reached the Govt. showing the way bank officials of both private and govt. banks colluded to turn black money into white. The CDs show how money is being exchanged cladenstinely by police officals, agents and influential people. The Govt. has enough proof now of this.

The Govt. is currently deliberately going slow on taking action against bank officials as part of a plan. Once the currency situation improves, then Govt. will take strict action against bank officials as it has all the proof. The Govt. may crack the whip on these people in Feb or March.

Revenue intelligence officals say the public would not have suffered so much if bank officals had done their job with honesty. Some CDs show bank officials exchanging money behind closed doors carrying hundreds of different ID proofs with them, even as people kept waiting in queue outside. That is why the note exchange scheme was abruptly discontinued by the Govt. The Govt. will diplomatically go soft on bank officials for a couple of months. After that, these officials will be in trouble.

http://abpnews.abplive.in/india-news/pm ... nch-514171

Shaktimaan · Post by **Shaktimaan** » 11 Dec 2016 23:12

I went to a restaurant in Powai, Mumbai today. They have a sign outside on the door saying we ONLY take cards.

Well what do you know, both of their swipe machines were not working that day and the poor staff were very stressed out. He apologetically asked me if I could do an e-transfer like PayTM or something else. I paid via PayTM, which is rock-solid these days. The credit/debit card authentication networks are buckling under the strain of the sudden surge in usage. Again, a side effect of the extreme secrecy surrounding DeMo. All will be well in a few months after Visa/Mastercard get their asses in gear.

Suresh S · Post by **Suresh S** » 11 Dec 2016 23:13

Singha wrote:A section of businessmen and self employed have high income but believe in a god given right not to pay taxes honestly. They will suffer things like poor electricity, water and roads stoically but will keep their money

By any yardstick 95% of chandni chowk buildings are fire and structural hazards and would be either cleaned up or razed in a developed country..but these traders will sit inside the maze in tiny shops and continue to make money even if the roof falls on their heads..then quickly blame the govt

Not all are like that..my regular electrical goods shop run by a membef of same community has long had a swipe machine

There is enough money in india right now for our country to move forward much faster than we are now.Biggest problem is and has been black market economy and not willing to pay taxes. As a young man I had running battles in the family about this topic. In own extended family people saying loudly "I never paid taxes in my life and start laughing like a maniac as though it is very funny.The usual answer from elders pahle jake do paisa kamma phir bat karna , chote muh badi bat and you are asked to shut up.

Another excuse given ,even though with valid reason during those times decades ago was if I pay taxes, Ye sub kha jayenge, meaning the govt people, the babus, and it was true than and even now.

If most people in India start paying taxes as they should and if govt employees who are corrupt to their bones stop swindling the public nothing can stop India,s growth to hit north of 10% soon. There will be enough money available to build those roads, schools, hospitals, ports, airports and factories without having to run to any other country or international institutions.And the good news is Narender Damodardas Modi is doing just that.

And in closing I quote myself ( and if I may add with tears running in my eyes and choking)as said to my brother on 16th of May , 2014 "AAj Hindustan ke train ne station ko chor diya ha, ab isko devata bhi nahi rok sakte. "

vnms · Post by **vnms** » 11 Dec 2016 23:33

Snahata, I think you meant to say May 2014.

Suresh S · Post by **Suresh S** » 11 Dec 2016 23:34

of course boss. Tx

JohnTitor · Post by **JohnTitor** » 11 Dec 2016 23:56

Shaktimaan wrote:I went to a restaurant in Powai, Mumbai today. They have a sign outside on the door saying we ONLY take cards.

Well what do you know, both of their swipe machines were not working that day and the poor staff were very stressed out. He apologetically asked me if I could do an e-transfer like PayTM or something else. I paid via PayTM, which is rock-solid these days. The credit/debit card authentication networks are buckling under the strain of the sudden surge in usage. Again, a side effect of the extreme secrecy surrounding DeMo. All will be well in a few months after Visa/Mastercard get their asses in gear.

As a side note - Visa/MC are not responsible for the terminals you see in shops etc. They are what are known as "schemes". Other such schemes are RuPay, AmericanExpress (though they also do cards), discover etc.

What you see in shops are terminals that are run and administered by "merchant acquirers" (colloquially known as merchant acquiring banks or payment acceptance). These guys connect to schemes which allow cards to be used nationally (or in the case of mastercard/visa internationally). The servers and architecture is mostly the jurisdiction of the acquirers. The schemes (international anyway) are more than capable of traffic. For instance, in the UK these guys have payments worth £1.5 trillion per annum flow through their systems without a single glitch. Heck, even the acquirers in UK/US do more than £2 billion each day - and that's only 25-30% of market share.

In India it is the payment acceptance banks/acquiring banks that require upgrading to cope with the traffic.

pankajs · Post by **pankajs** » 11 Dec 2016 23:58

sanjayc wrote:Story filed by political editor of ABP News - It's in HIndi. i have translated. Looks like all hell will break loose on bank officials in Feb / March - Modi Govt. going soft on them till then as part of a plan

Modi Govt. has conducted sting operations at 500 bank branches

PM Modi has got sting operation done at 500 bank branches across the country. The CDs of the operation have already reached the Finance Ministry. Govt. is waiting for an opportune moment to act. According to sources, about 400 CDs have already reached the Govt. showing the way bank officials of both private and govt. banks colluded to turn black money into white. The CDs show how money is being exchanged cladenstinely by police officals, agents and influential people. The Govt. has enough proof now of this.

The Govt. is currently deliberately going slow on taking action against bank officials as part of a plan. Once the currency situation improves, then Govt. will take strict action against bank officials as it has all the proof. The Govt. may crack the whip on these people in Feb or March.

Revenue intelligence officals say the public would not have suffered so much if bank officals had done their job with honesty. Some CDs show bank officials exchanging money behind closed doors carrying hundreds of different ID proofs with them, even as people kept waiting in queue outside. That is why the note exchange scheme was abruptly discontinued by the Govt. The Govt. will diplomatically go soft on bank officials for a couple of months. After that, these officials will be in trouble.
http://abpnews.abplive.in/india-news/pm ... nch-514171

I suspected as much. It is not in Modi's interest to rile the banking babus just now while we are in the middle of the currency swap. Similar for the rest of the babus in IT/ED/CBI and babudom in general. Each will be allowed to work past Its critical phase and then receive special attention.

Also, when the benami act is rolled out for implementation babus will all be rolled up in one go. Why get them riled up now at this critical phase. Of course any blatant act will have to be tackled ASAP.

pankajs · Post by **pankajs** » 12 Dec 2016 00:05

UlanBatori wrote:Malloostan Opposition netas overheard at a wedding reception: "If the govt is determined to target carefully, they can find all the stashed money of the Left Front in the Co Op banks".

Wonder where the Kangress keeps its loot...

The family money is outside India collected via defence procurement. Money received in hard currency outside and parked outside.

The party funds would be with businessmen and moneybags e.g Sahara or a real estate developer or in real estate itself.

eklavya · Post by **eklavya** » 12 Dec 2016 00:56

Note wapsi appears to be about as well thought through as ghar wapsi.

At least the next UP election will not be about caste equations but rather cash situation.

Lilo · Post by **Lilo** » 12 Dec 2016 01:10

eklavya wrote:Note wapsi appears to be about as well thought through as ghar wapsi.

eklavya ji,
Atleast you made it rhyme !

Akshay Kapoor · Post by **Akshay Kapoor** » 12 Dec 2016 01:26

sanjayc wrote:Story filed by political editor of ABP News - It's in HIndi. i have translated. Looks like all hell will break loose on bank officials in Feb / March - Modi Govt. going soft on them till then as part of a plan

Modi Govt. has conducted sting operations at 500 bank branches

PM Modi has got sting operation done at 500 bank branches across the country. The CDs of the operation have already reached the Finance Ministry. Govt. is waiting for an opportune moment to act. According to sources, about 400 CDs have already reached the Govt. showing the way bank officials of both private and govt. banks colluded to turn black money into white. The CDs show how money is being exchanged cladenstinely by police officals, agents and influential people. The Govt. has enough proof now of this.

The Govt. is currently deliberately going slow on taking action against bank officials as part of a plan. Once the currency situation improves, then Govt. will take strict action against bank officials as it has all the proof. The Govt. may crack the whip on these people in Feb or March.

Revenue intelligence officals say the public would not have suffered so much if bank officals had done their job with honesty. Some CDs show bank officials exchanging money behind closed doors carrying hundreds of different ID proofs with them, even as people kept waiting in queue outside. That is why the note exchange scheme was abruptly discontinued by the Govt. The Govt. will diplomatically go soft on bank officials for a couple of months. After that, these officials will be in trouble.
http://abpnews.abplive.in/india-news/pm ... nch-514171

I wonder how much fraud has happened. Just trying to estimate - whats the max fraud that can happen in one branch in two ways - note exchange and note deposits into new benami accounts. Any guesses guys?

eklavya · Post by **eklavya** » 12 Dec 2016 01:35

Lilo ji,

Corruption in India (or any other country, for that matter) occurs because of a nexus between criminals and the state. This very nexus now appears be at work to undermine the government's aims, enriching itself further in the process, while the public's legitimate needs for cash to conduct their daily affairs are being frustrated. Classic case of overreach and unintended consequences.

That corruption needs to be attacked head on is not in doubt. It might be worth studying the differences in institutional structures between societies with very low levels of corruption (e.g. Norway, Botswana) and those with high levels of corruption (e.g. Italy, Nigeria).

suryag · Post by **suryag** » 12 Dec 2016 02:36

For me dhoti shiver has started given the continuing inconvenience and I fear there might be big impact on up elections for bhajpa

disha · Post by **disha** » 12 Dec 2016 02:59

Please do a #Blow2Modi. Will ease all contusions that cause dhoti shivering!

Particularly after some Indian Dalmatian throws in woerds lk appalling etc

hanumadu · Post by **hanumadu** » 12 Dec 2016 03:03

Neshant wrote:War on Gold: Is India Proof Elites Want to Confiscate Gold?
Chris Campbell
By Chris Campbell
Nov 30, 2016

This elite thing, negative interest rates, confiscate gold is best left to the other thread. India's purpose for DeMo is completely different.

Rishirishi · Post by **Rishirishi** » 12 Dec 2016 03:44

So far not a single Government official has been caught.

It is the corruptpt officials who are the core of the problem. Businesses may have been cheating on tax, at least they contributied towards employment , income generation and made India the worlds fastest growing economy.

Dot get me wrong, i do believe in a white economy. But without catching the corrupt officials, nothing is going to change. In reality most businesses would love to operate in white, becase it makes much better sense. Lower interest on loans, greater possibilities to invest and one problem less. But corrupt officials make it nearly impossible to opperate in white (the moment they know you have money they will harass you, and extort money out of you.

Ankit Desai · Post by **Ankit Desai** » 12 Dec 2016 05:29

Rishirishi wrote:So far not a single Government official has been caught.

It is the corruptpt officials who are the core of the problem. Businesses may have been cheating on tax, at least they contributied towards employment , income generation and made India the worlds fastest growing economy.
...........

Maharashtra govt official insists on bribe in Rs 100 notes, arrested

According to Maharashtra Anti-corruption Bureau, the official was approached by the complainant for clearing his Krishi Seva Kendra proposal.

Gujarat: Govt staff caught taking Rs 4 lakh bribe in new Rs 2,000 notes

Gujarat police have arrested two government employees for allegedly accepting a bribe of Rs 4 lakh in Rs 2,000 notes, a crime that has perplexed investigators because of a limit set by the government on withdrawal of new currency.

These two examples are top of my head. There may be more.

-Ankit

Pathik · Post by **Pathik** » 12 Dec 2016 06:07

Rishirishi wrote:So far not a single Government official has been caught.

It is the corruptpt officials who are the core of the problem. Businesses may have been cheating on tax, at least they contributied towards employment , income generation and made India the worlds fastest growing economy.

Dot get me wrong, i do believe in a white economy. But without catching the corrupt officials, nothing is going to change. In reality most businesses would love to operate in white, becase it makes much better sense. Lower interest on loans, greater possibilities to invest and one problem less. But corrupt officials make it nearly impossible to opperate in white (the moment they know you have money they will harass you, and extort money out of you.

Between black and white, its a balancing act which has to play out by itself with some tight controls in place for both black and the white players like major banks, commerce and lending institutions. Too much of white puts too much power into the hands of major conglomerates giving them absolute power over customer needs, behaviours, rates and pricing based on the tremendous leverage from the data they can gather. Tough banking regulations and heavy fines against defaulters would be needed going forward

Yagnasri · Post by **Yagnasri** » 12 Dec 2016 06:34

From what we see with people getting caught with 2000 notes it is clear that these notes are now favourite for the looters to keep and transact and that is what they are doing. But from where these notes are coming? Obviously from Banks. The shortages in rural areas also seem to be deliberately created with the help of bankers in most of the cases.

I am not sure if CD can be obtained as mentioned in ABP report, but if they did then it is good. From what I hear lot of CDs of gold shops were obtained even from towns and they are being enquired into.

raj-senthil · Post by **raj-senthil** » 12 Dec 2016 07:11

http://deshgujarat.com/2016/12/11/it-notices-to-those-who-deposited-rs-1-crore-or-more-cash-post-demonetization/

Surat/Ahmedabad: Income Tax department office in Surat has issued notices to around 1200 persons with a list of 20 questions. The notices are sent to those 1200 who have deposited over Rs 1 crore in old notes after demonetization of Rs 500 and Rs 1000 currency notes announced by Prime Minister on November 8.

Income Tax department has found that there were only 55 persons in Surat who had shown annual income of Rs 1 crore or above, but now as many as 1200 have deposited over Rs 1 crore amount in their bank account. While this figure is limited only to nationalized bank accounts, the details of private and cooperative sector banks are yet to arrive before the department. The total number of those who have deposited one crore or more post demonetization may cross even 2,000 mark.

Income Tax department’s Criminal Investigation Wing, Central Investigation Wing and State Investigation Wing are keeping vigil over deposited cash in old notes post demonetization. Notices are being issued to those who have deposited 1 crore or more cash post November 8 in old notes. Investigations across the state will be conducted by Ahmedabad based Director General of Investigation Wing of Income Tax department.

CBDT Chairman Sushil Chandra has ordered shifting of IT staff with lesser burden of work to Investigation Wing.

Surat had not more than 150 Income Tax payer in above Rs 10 lakh per year income slab previously. Notices are likely to be issued to those who have deposited Rs 10 lakh or more in cash post demonetization.

Those few who deposited Rs 10 crore or more have already faced searches and raids by IT sleuths in past weeks. Builder Piyush Nilkanth and Gutkha wholeseller Kanu Lallu Panwala in Surat are among them. While Piyush Nilkanth had deposited Rs 12 crore, Kanu Panwala had deposited Rs 11 crore in bak account post demonetization.

In its notice issued under IT Act 133(6) IT department has asked 20 questions in four pages. Source of cash, Pancard-ten number details, 2016-17 return details, advance-selling details, loan details, last year’s cash-on-hand and stock sell details, other bank accounts details are sought in 20-question notice.

shiv · Post by **shiv** » 12 Dec 2016 07:34

Ankit Desai wrote:
Rishirishi wrote:So far not a single Government official has been caught.

It is the corruptpt officials who are the core of the problem. Businesses may have been cheating on tax, at least they contributied towards employment , income generation and made India the worlds fastest growing economy.
...........
Maharashtra govt official insists on bribe in Rs 100 notes, arrested

According to Maharashtra Anti-corruption Bureau, the official was approached by the complainant for clearing his Krishi Seva Kendra proposal.
Gujarat: Govt staff caught taking Rs 4 lakh bribe in new Rs 2,000 notes

Gujarat police have arrested two government employees for allegedly accepting a bribe of Rs 4 lakh in Rs 2,000 notes, a crime that has perplexed investigators because of a limit set by the government on withdrawal of new currency.
These two examples are top of my head. There may be more.

-Ankit

Also
http://www.hindustantimes.com/india-new ... iSF1H.html

shiv · Post by **shiv** » 12 Dec 2016 07:37

raj-senthil wrote:http://deshgujarat.com/2016/12/11/it-notices-to-those-who-deposited-rs-1-crore-or-more-cash-post-demonetization/

This news means that a fair number of people have voluntarily submitted to recycle their black cash into white as the government offered them post demonetization

Singha · Post by **Singha** » 12 Dec 2016 10:53

The guy tandon whose law firm raid yielded tens of crore is not known in legal circles there per a sc lawyer classmate of mine. So law firm was just a front to launder money for clients.

chetak · Post by **chetak** » 12 Dec 2016 10:57

pankajs wrote:
UlanBatori wrote:Malloostan Opposition netas overheard at a wedding reception: "If the govt is determined to target carefully, they can find all the stashed money of the Left Front in the Co Op banks".

Wonder where the Kangress keeps its loot...
The family money is outside India collected via defence procurement. Money received in hard currency outside and parked outside.

The party funds would be with businessmen and moneybags e.g Sahara or a real estate developer or in real estate itself.

and some domestic airlines as well

hnair · Post by **hnair** » 12 Dec 2016 11:19

UlanBatori wrote: Apparently CoOp banks also have zillions of benami depojitors who are in fact the holders of the Left Democratic Front's Back Office Deposits.

Yes, I had posted a bit about this over the years in GDF foras. LDF seem to be using a self financing model of political funding using co-op banks since 60s, but accelerated since the 80s. Most of their sleaze money got during the 5-year cycle of power sharing used to go through these. The current CM was the one who is credited with fine tuning this system since 90s, while his ertswhile mentor-turned-foe, the late Kommissar MV Raghavan setup the whole edifice. The only difference is that the share that the cadre gets from the neta is higher in LDF than UDF, thanks to the thicker meesha-muscle combo of the LDF cadre

Heard in Kannur: "would have taken our chances with a CRPF deployment or CBI than RBI

"

But both sides have other routes via Gelf too. The LDF leaders are supposedly close to a certain Gelf based money-exchanger and his corporate upper managements are like, vast parking lots for princes and princelings from Malabar. The UDF is more diversified in its bag-men. One is the big-box shopkeeper, who apparently handles everyone from a certain Cashmere leader-who-cant-win-outside-dilli to certain factions of the league. Then there is this joulery-turned-realty chap, who apparently does bag work for the Baskin-bin-Robbini.... The Pala based Money-Gounder deals via the Happy-Joules. Then there are lesser bag men, who can angel-invest everything from a franchise for high-end Oiropean design house to DOO firms with minimal clientile.... One huge morass