Currency Demonetisation and Future course of Indian Economy

SBajwa · Post by **SBajwa** » 09 Nov 2016 00:18

My father build a house in 1978 in Ajitgarh (Chandigarh) for Rs. 2 Lakhs and 21 thousands (I have his diary with all expenses). Now in 2016 people were offering me Rs 5 crore for the same house (I refused to sell). The rent of a single room is Rs 5000 per month (Just one room is rented out so that at least electricity/water continues and someone is there). Let's see what happens.

jamwal · Post by **jamwal** » 09 Nov 2016 00:22

That was one of first thoughts that ran through my head. With this move, circulation of fake currency is nearly finished.
There are quite a few people around who have not paid any income tax ever. A lot of shopkeepers and other business owners who deal mostly in cash. They will be big losers too.

Ofcourse then there are others like builders, politicians, smugglers and other big fish who will feel the pain.

Salaried class seems happy.

SBajwa · Post by **SBajwa** » 09 Nov 2016 00:40

by Dinesh S
Btw, USA has 100$ , UK has 50 £ bills both 500% more valuable than indian 1000₹ note. Has that meant india has had a corruption level 20% that of US or UK? anyway, i am pretty sure you guys have already made up your mind on why this is great and I am no economist to convince you guys otherwise. So i will leave it at that

USA also has Social Security Numbers and every working person pays taxes each month with salary. Every single time anybody buys/sells anything each transaction has a traceable digital number. If you deposit $10,000 in a bank IRS knows right away and if you did not mentioned this in your yearly tax return ., you could pay hefty fines and/or go to jail.

If you earn your money honestly., you must obey the rules.

sanjaykumar · Post by **sanjaykumar** » 09 Nov 2016 00:42

Whoa, can you adopt me SBajwa?

kmkraoind · Post by **kmkraoind** » 09 Nov 2016 01:14

Rishi Verma wrote:Biggest losers (I hope) will be chacha/bhatija/netaji + Amar Singh who have a stash of cash for UP election spending. But these goons can force local bank branches to launder money.

How is that possible? Many private banks are taking Xerox/photocopy of ID proof for higher amount of cash deposits/withdrawals. The core bank SW will not accept more than Rs. 50,000 without Pan card number. As RBI Deputy Guv said, now banks are under CCTV surveillance. I bet they will not delete those recording,s and send those to IT dept for safe keeping. I am even thinking ED/NSA are discretely listening all the chatter.

Bheeshma · Post by **Bheeshma** » 09 Nov 2016 01:22

Waiting to see if pakis start

as a sign of Modi's economic war against them.

ramana · Post by **ramana** » 09 Nov 2016 01:29

No comments from econ posters here?
Even though its economic move its thermodamnic strike against the black money ecosystem. Shocks will be felt all the way to massa land.

IndraD · Post by **IndraD** » 09 Nov 2016 01:38

Ramana sir please explain how will massa land feel after shock, also why are politicians like Mamta & Kejriwal feeling as if this is surgical strike on their privates?

Dinesh S · Post by **Dinesh S** » 09 Nov 2016 01:40

hanumadu wrote:
Dinesh S wrote: Better than that, we have to dis-incentivize money hoarding/wealth hoarding all together. Put an artificial cap above which no body should be allowed to earn. Rich getting richer is a curse and we should make sure nobody becomes rich
Basically you have admitted you are a communist.

Is it fashion here to not read anything in context? I was just calling out the idea of capping "house hoarding" by taking the statement to its logical extent

SBajwa · Post by **SBajwa** » 09 Nov 2016 01:45

by SanjayKumar!
Whoa, can you adopt me SBajwa?

Sure! I plan to live in that house in Chandigarh after retirement on whatever the money I get from SSN. Another story! When Chandigarh was being built since it was not situated on any river or canal people didn't gave much chances for its success. So Nehru chacha forced government officials to buy plots all over Chandigarh for soft loans. The 1 canal house in Sector-35 that my uncle was forced to buy for rs 15,000 in 1965 is now Rs 25 Crores. He is retired in that house and even when he stands outside his house strangers come in asking to rent/buy. It seems like whole of Haryana and Punjab wants to move to Chandigarh/Mohali/Panchkula. Real estate market is still booming there.

nirav · Post by **nirav** » 09 Nov 2016 01:48

Lower circuits in real estate stocks expected..

I hope we don't see soosai news in the coming days... middle class home buyers/sellers using the old ratios for white and black will be in deep deep trouble..

Dinesh S · Post by **Dinesh S** » 09 Nov 2016 01:53

Next brilliant ideas for govt - make bitcoin illegal. Make gold illegal(gold can still be used for black currency/economy/market. Make everything illegal.

Btw, this move will not affect black market holders in any major way. They already have everything in real estates/gold/us dollars etc. The biggest losers here will be middle class businessmen and middle class people who have invested in real estate. Contrary to popular belief of most people, its not just black money holders who have invested in real estate. If any middle class guy has any sort of land/house, it is his real estate asset. So a move like this, which might cause real estate crash will certainly affect them a lot. And of course if will affect the crorepathy politicians , but seriously who do you think is screwed more when the asset prices fall 50%? wealth of a 100 crore property(belonging to a bureaucrat/politician) falling to 50crore or wealth of a 1 lakh property belonging to a middle class family falling to 50 thousand?

All the govt has done is signal how untrustworthy indian rupee is. I was seriously skeptical of @panduranghari ji's points on why we should not trust Fiat currency (like rupee) and invest in gold. Now i am beginning realise that he might have a point . May be sane people, who are not from mughabe school of economics and monetary policy as most most indians who rejoice this stupid love by the govt seem to be, should start learning about alternates like Bitcoin, gold, USD, Yen etc

And the other brfite jingos who want rupee to be on par with USD /pound etc can keep dreaming. Our government should make such bold gymnastics wi5h currency and it will certainly make our currency trustworthy, certainly worthy of being an alternate to USD and Pound sterling

Raveen · Post by **Raveen** » 09 Nov 2016 01:59

Dinesh S wrote:Next brilliant ideas for govt - make bitcoin illegal. Make gold illegal(gold can still be used for black currency/economy/market. Make everything illegal.

Btw, this move will not affect black market holders in any major way. They already have everything in real estates/gold/us dollars etc. The biggest losers here will be middle class businessmen and middle class people who have invested in real estate. Contrary to popular belief of most people, its not just black money holders who have invested in real estate. If any middle class guy has any sort of land/house, it is his real estate asset. So a move like this, which might cause real estate crash will certainly affect them a lot. And of course if will affect the crorepathy politicians , but seriously who do you think is screwed more when the asset prices fall 50%? wealth of a 100 crore property(belonging to a bureaucrat/politician) falling to 50crore or wealth of a 1 lakh property belonging to a middle class family falling to 50 thousand?

All the govt has done is signal how untrustworthy indian rupee is. I was seriously skeptical of @panduranghari ji's points on why we should not trust Fiat currency (like rupee) and invest in gold. Now i am beginning realise that he might have a point . May be sane people, who are not from mughabe school of economics and monetary policy as most most indians who rejoice this stupid love by the govt seem to be, should start learning about alternates like Bitcoin, gold, USD, Yen etc

And the other brfite jingos who want rupee to be on par with USD /pound etc can keep dreaming. Our government should make such bold gymnastics wi5h currency and it will certainly make our currency trustworthy, certainly worthy of being an alternate to USD and Pound sterling

#facepalm

Dude, seriously, where the heck do you get this from?

Dinesh S · Post by **Dinesh S** » 09 Nov 2016 02:03

Btw on one hand govt does endless opparis on why investing in gold is so bad and worthless, often mirrored by investing experts here, who would want to dictate how indian families should invest their own hard earned money and on the other hand it does such bold moves which makes trustworthiness of Inr a joke. Yeah, good luck convincing anyone from not investing in gold guys.

Interesting enough, a similar move was done by indira mata during 1970s and it immediately stopped all corruption and black money in its tracts

salaam · Post by **salaam** » 09 Nov 2016 02:04

Dinesh S wrote:Btw on one hand govt does endless opparis on why investing in gold is so bad and worthless, often mirrored by investing experts here, who would want to dictate how indian families should invest their own hard earned money and on the other hand it does such bold moves which makes trustworthiness of Inr a joke. Yeah, good luck convincing anyone from not investing in gold guys.

Interesting enough, a similar move was done by indira mata during 1970s and it immediately stopped all corruption and black money in its tracts

Get some rest, and calm down. You are just typing nonsense...

Dinesh S · Post by **Dinesh S** » 09 Nov 2016 02:05

Raveen wrote:
Dinesh S wrote:Next brilliant ideas for govt - make bitcoin illegal. Make gold illegal(gold can still be used for black currency/economy/market. Make everything illegal.

Btw, this move will not affect black market holders in any major way. They already have everything in real estates/gold/us dollars etc. The biggest losers here will be middle class businessmen and middle class people who have invested in real estate. Contrary to popular belief of most people, its not just black money holders who have invested in real estate. If any middle class guy has any sort of land/house, it is his real estate asset. So a move like this, which might cause real estate crash will certainly affect them a lot. And of course if will affect the crorepathy politicians , but seriously who do you think is screwed more when the asset prices fall 50%? wealth of a 100 crore property(belonging to a bureaucrat/politician) falling to 50crore or wealth of a 1 lakh property belonging to a middle class family falling to 50 thousand?

All the govt has done is signal how untrustworthy indian rupee is. I was seriously skeptical of @panduranghari ji's points on why we should not trust Fiat currency (like rupee) and invest in gold. Now i am beginning realise that he might have a point . May be sane people, who are not from mughabe school of economics and monetary policy as most most indians who rejoice this stupid love by the govt seem to be, should start learning about alternates like Bitcoin, gold, USD, Yen etc

And the other brfite jingos who want rupee to be on par with USD /pound etc can keep dreaming. Our government should make such bold gymnastics wi5h currency and it will certainly make our currency trustworthy, certainly worthy of being an alternate to USD and Pound sterling
#facepalm

Dude, seriously, where the heck do you get this from?

Are you going to say that this won't put any strain on real estate sector?

But weren't the pro demonetization guys ecstatic that the real estate prices will come down because of this move? Please guys make up your mind on what you guys think the effect of such move will have on real estate sector.

Dinesh S · Post by **Dinesh S** » 09 Nov 2016 02:07

salaam wrote:
Dinesh S wrote:Btw on one hand govt does endless opparis on why investing in gold is so bad and worthless, often mirrored by investing experts here, who would want to dictate how indian families should invest their own hard earned money and on the other hand it does such bold moves which makes trustworthiness of Inr a joke. Yeah, good luck convincing anyone from not investing in gold guys.

Interesting enough, a similar move was done by indira mata during 1970s and it immediately stopped all corruption and black money in its tracts
Get some rest, and calm down. You are just typing nonsense...

Yeah. Great counter to what I said about Inr losing trust and why I am wrong. the fact that govt has practically demonstrated that they can pull off a move which undermines INR notes it itself gave away only proves what I said about not trusting INR anymore. If that's too much logic for you, you can ignore it.

salaam · Post by **salaam** » 09 Nov 2016 02:10

Dinesh S wrote:
salaam wrote:
Get some rest, and calm down. You are just typing nonsense...
Yeah,l. Great counter to what I said about Inr losing trust. the fact that govt has practically demonstrated that they can pull off a move which undermines INR notes it itself gave away only proves what I said about not trusting INR anymore. If that's too much logic for you, you can ignore it.

I won't let you hijack this thread, I am going to start reporting all your posts as whining nonsense going on.

Further, there is no undermining. Its just exchange of 'compromised' currency notes with exactly same face value new currency notes.

nirav · Post by **nirav** » 09 Nov 2016 02:11

Dinesh , take a break man

How many 500/1000 notes you got ?

Dinesh S · Post by **Dinesh S** » 09 Nov 2016 02:13

Deleted

Suraj · Post by **Suraj** » 09 Nov 2016 02:15

Dinesh S wrote:Btw, this move will not affect black market holders in any major way. They already have everything in real estates/gold/us dollars etc. The biggest losers here will be middle class businessmen and middle class people who have invested in real estate. Contrary to popular belief of most people, its not just black money holders who have invested in real estate. If any middle class guy has any sort of land/house, it is his real estate asset. So a move like this, which might cause real estate crash will certainly affect them a lot. And of course if will affect the crorepathy politicians , but seriously who do you think is screwed more when the asset prices fall 50%? wealth of a 100 crore property(belonging to a bureaucrat/politician) falling to 50crore or wealth of a 1 lakh property belonging to a middle class family falling to 50 thousand?

Speculating on the value of illiquid investments is pointless. The middle class families are not putting their homes on the market en masse tomorrow. If their appraised value falls, they correspondingly pay less in property taxes. Buyers with white money benefit from lower prices.

Similarly, the price of gold is held up by a black economy that's 30-50% of the regular one. That's cash floating about keeping the value of gold up. If the big fishes hold their holdings in gold, they cannot unload it into a more liquidity constrained white market without taking a huge haircut in nominal value.

It's fundamentally impossible to fix the black money problem without asset price recalibration. How on earth did people think it would work otherwise ? The bad guys would be rounded up and everything would work just as before with no perceptible change ? The black economy is hundreds of billions worth of cash floating about, distorting the price of everything. Any attempt to tackle it necessarily results in asset price recalibration. It's unavoidable.

The arguments against this move is that the prices of a lot of things will change dramatically. Sure it will. It's also true that the value of each rupee will rise significantly, because there's less liquid rupee chasing each $/Euro/gram of gold/bitcoin, i.e. the purchasing power of the Rupee rises as a result of this. This move is deflationary. Everything falls in *price*, not in *value*. The purchasing power of each Rupee rises in the process.

nirav · Post by **nirav** » 09 Nov 2016 02:20

This hue and cry about middle class homeowner's property valuation is ignoring a vital aspect.

Middle class homeowner's actually live in their homes and more often than not sell their homes to get a bigger home.

If property undergoes a huge devaluation, impact on middle class homeowner's isntuch as their loss in valuation of their existing home will be set off by the reduction in the bigger house they would buy..

saip · Post by **saip** » 09 Nov 2016 02:20

The real estate market has to come down. Three years ago when my sis sold her flat she got 1/3rd in cash, obviously black. Now who will take that kind of cash? There is some kind of market value set by the Land registrar I think and you can not sell below that. So what happened was the buyer set the recorded price in deed at that and paid stamp duty (why does not the govt collect it as fees?) and regn fee on that and handed the rest in cash. I developed a cramp counting all that money. Now it will be a check only, I hope.

Rishirishi · Post by **Rishirishi** » 09 Nov 2016 02:28

Effects on politics

1 All black cash holdings (billions are wiped out)

2 It will become impossible to raise money by selling property, as no one will have the cash to pay black. Property will be hard to sell white, as cash will be in high demand.

3 It will be very hard to rasie funds from abroad, as havala transactions will become very trikey. There will be no supply of black money to offset the transaction. Besides most havala opperators will already be bust.

4 Selling of gold will also be difficult, as the will to purchase it will be gone.

All this will make it impossible for political parties to fund their campaigns. Modi and BJP probably has already made arrangements for them selfs.

Suraj · Post by **Suraj** » 09 Nov 2016 02:30

nirav wrote:This hue and cry about middle class homeowner's property valuation is ignoring a vital aspect.

Middle class homeowner's actually live in their homes and more often than not sell their homes to get a bigger home.

If property undergoes a huge devaluation, impact on middle class homeowner's isntuch as their loss in valuation of their existing home will be set off by the reduction in the bigger house they would buy..

There's another aspect people ignore. There's less cash circulating in the economy once this goes into effect, which means there's less cash chasing the same products or assets. In other words, the value of money in hand rises. What is lost is the nominal value of currency that was already exchanged for property that now costs less. On the other hand, an effective system should result in these assets growing in value after a short to medium term period of tumult.

Manish_Sharma · Post by **Manish_Sharma** » 09 Nov 2016 02:36

Dinesh S wrote: Yeah. Great counter to what I said about Inr losing trust and why I am wrong......

Why don't you see, that porkland-isi-cheenis had the paper ink and perfect copy of designs in these 500 & 1000 rupee notes. As NaMo said in his speech that a huge chunk of currency is copy funding the terrorists that is we are funding terrorists by continuing with compromised design and paper.

Loads of Dawood relatives in mumbai handling black money and terrorist cells from ghettos are holding all this using against 'us' the citizens of Bharat.

Suppose a trunkload of these 'currency notes' are being kept by a sleeper cell, who is to fund 12 other sleeper terror-agents of isi in case of war with porkistan to disrupt armed forces from inside the nation. ALL THEIR MONEY HAS BECOME MORE WORTHLESS THAN KABAADI RADDI NEWS-PAPER.

Printing presses running their ink - plates - design - paper production everything has become garbage, what isi will do with it they don't know.... they are banging their heads on the wall.

Before election sonia gandhi had IT raid on Kumarmangalam Birla's house and they found 25 crore rupees in cash.

Imagine before UP election how much cash will be there in Vadra-house as they know that IT raid on bianca vadra is impossible for govt. Now everything turns to mud. Same with other political parties for punjab elections, kejri must have made arrangements and suddenly AAP's money is kaput, so he cries ... naturally.

Jasooss Doval ji, must have made sure that this time china - porkistan won't be able to get design-ink-paper easily. Plus NaMo said in his speech, that RBI will make sure that currency of 500 & 2000 rupee notes will not be allowed to grow in big percentage, so in future there will not be such problems anymore.

Terror financing must have gotten a big boost when sonia gandhi made 1000 rupee notes from UK, and through Ahmed Patel's help isi must have gotten the secrets and designs of the paper.

And in one go

Dinesh S · Post by **Dinesh S** » 09 Nov 2016 02:40

Suraj wrote:
Dinesh S wrote:Btw, this move will not affect black market holders in any major way. They already have everything in real estates/gold/us dollars etc. The biggest losers here will be middle class businessmen and middle class people who have invested in real estate. Contrary to popular belief of most people, its not just black money holders who have invested in real estate. If any middle class guy has any sort of land/house, it is his real estate asset. So a move like this, which might cause real estate crash will certainly affect them a lot. And of course if will affect the crorepathy politicians , but seriously who do you think is screwed more when the asset prices fall 50%? wealth of a 100 crore property(belonging to a bureaucrat/politician) falling to 50crore or wealth of a 1 lakh property belonging to a middle class family falling to 50 thousand?
Speculating on the value of illiquid investments is pointless. The middle class families are not putting their homes on the market en masse tomorrow. If their appraised value falls, they correspondingly pay less in property taxes. Buyers with white money benefit from lower prices.

Similarly, the price of gold is held up by a black economy that's 30-50% of the regular one. That's cash floating about keeping the value of gold up. If the big fishes hold their holdings in gold, they cannot unload it into a more liquidity constrained white market without taking a huge haircut in nominal value.

It's fundamentally impossible to fix the black money problem without asset price recalibration. How on earth did people think it would work otherwise ? The bad guys would be rounded up and everything would work just as before with no perceptible change ? The black economy is hundreds of billions worth of cash floating about, distorting the price of everything. Any attempt to tackle it necessarily results in asset price recalibration. It's unavoidable.

The arguments against this move is that the prices of a lot of things will change dramatically. Sure it will. It's also true that the value of each rupee will rise significantly, because there's less liquid rupee chasing each $/Euro/gram of gold/bitcoin, i.e. the purchasing power of the Rupee rises as a result of this. This move is deflationary. Everything falls in *price*, not in *value*. The purchasing power of each Rupee rises in the process.

Regarding value remaining same - no it won't. Only the prices of real estate will fall on relation to a lot of other commodities. So say a middle class who had invested in gold vs middle class invested in house, when price of house falls in rupee while the gold doesn't(and actually increases), there is a net loss in value for the guy holding the house. So no, your point is wrong .

That aside, it still doesn't change what I said about INR becoming practically untrustworthy. This is a step back in 4 decades wrt monetary policy. No body, who is following this in their right mind will trust INR now considering how surprisingly this was implemented. We need Inr to be at the level of trustworthiness of the USD ,not make it equivalent to Zimbabwean $ subject to whims and sizes of politicians

yogi · Post by **yogi** » 09 Nov 2016 02:42

I have been dreaming about this step for years. Finally someone with some DUM, who could get it done.

Next step: Public Auction & Payment for all property transactions, where anyone can buy a property up for sale, anywhere in country, if willing to pay more than the latest bidder.

salaam · Post by **salaam** » 09 Nov 2016 02:46

Dinesh S wrote: Regarding value remaining same - no it won't. Only the prices of real estate will fall on relation to a lot of other commodities. So say a middle class who had invested in gold vs middle class invested in house, when price of house falls in rupee while the gold doesn't(and actually increases), there is a net loss in value for the guy holding the house. So no, your point is wrong .

That aside, it still doesn't change what I said about INR becoming practically untrustworthy. This is a step back in 4 decades wrt monetary policy. No body, who is following this in their right mind will trust INR now considering how surprisingly this was implemented. We need Inr to be at the level of trustworthiness of the USD ,not make it equivalent to Zimbabwean $ subject to whims and sizes of politicians

Mods, kindly ban this troll. He keeps on posting, even after a warning.

Dinesh S · Post by **Dinesh S** » 09 Nov 2016 02:50

Manish_Sharma wrote:
Dinesh S wrote: Yeah. Great counter to what I said about Inr losing trust and why I am wrong......
Why don't you see, that porkland-isi-cheenis had the paper ink and perfect copy of designs in these 500 & 1000 rupee notes. As NaMo said in his speech that a huge chunk of currency is copy funding the terrorists that is we are funding terrorists by continuing with compromised design and paper.

Loads of Dawood relatives in mumbai handling black money and terrorist cells from ghettos are holding all this using against 'us' the citizens of Bharat.

Suppose a trunkload of these 'currency notes' are being kept by a sleeper cell, who is to fund 12 other sleeper terror-agents of isi in case of war with porkistan to disrupt armed forces from inside the nation. ALL THEIR MONEY HAS BECOME MORE WORTHLESS THAN KABAADI RADDI NEWS-PAPER.

Printing presses running their ink - plates - design - paper production everything has become garbage, what isi will do with it they don't know.... they are banging their heads on the wall.

Before election sonia gandhi had IT raid on Kumarmangalam Birla's house and they found 25 crore rupees in cash.

Imagine before UP election how much cash will be there in Vadra-house as they know that IT raid on bianca vadra is impossible for govt. Now everything turns to mud. Same with other political parties for punjab elections, kejri must have made arrangements and suddenly AAP's money is kaput, so he cries ... naturally.

Jasooss Doval ji, must have made sure that this time china - porkistan won't be able to get design-ink-paper easily. Plus NaMo said in his speech, that RBI will make sure that currency of 500 & 2000 rupee notes will not be allowed to grow in big percentage, so in future there will not be such problems anymore.

Terror financing must have gotten a big boost when sonia gandhi made 1000 rupee notes from UK, and through Ahmed Patel's help isi must have gotten the secrets and designs of the paper.

And in one go

This is something targeted towards black money and not terrorists or fake currency. If it was, the change would have been brought in slow and it would have been as effective at solving fake currency(terror currency). In a country like india with a pathetic business environment, black economy is very important for both services and economic growth. You honestly think a businessman paying 30% of his taxes to the inefficient government is better than him able to invest the money back in the economy albeit in black? I hate coming back to rte but it is again one big example on how bad laws are worse than illegal activity/corruption. As per rte, hundreds of thousands of school will have to be closed down because it won't be able to meet the standards set in the stupid law and the only thing which keeps them going is the bribes. Would you rather have them closed down because that is illegal?

And of course, the fact that Bjp has made this political move as a tool against Congis is very disturbing and sets a very bad precedent. Unless someone is completely naive to think bjp is corruption free, this is something which can be repeated by Congis tomorrow under the same pretext. Which will mean even more uncertainty wrt INR.
http://swarajyamag.com/politics/nda-dem ... -stuns-all

No serious economist i know thinks it was a good move for economy.

nirav · Post by **nirav** » 09 Nov 2016 02:53

Dinesh,

Pray tell which middle family owns gold equivalent to their residential property value?

And if you know any, they are no way "middle class"..

You are arguing just for the sake of arguing.

fanne · Post by **fanne** » 09 Nov 2016 02:53

Boss it is not that you loose your 500 or 1000 notes. You can deposit them. If you got this money through legal means and paid taxes, you deposit money, explain when it department inquires. If got through legal means but did not pay taxes, you pay taxes and penalty and the it department knows your real income now. It is fair to everyone. If You got this income through illegal means, like selling drugs or your country, well this was surgical strike aimed at you. Does it hurt? Well that was the intent.

nirav · Post by **nirav** » 09 Nov 2016 02:56

Looks like he's sitting on a pile

Resultant balderdash is understandable but not welcome in here.

MohdKav · Post by **MohdKav** » 09 Nov 2016 02:57

So if was planning to go for a loan of 1 crore by showing a property worth 4 crore, and the valuer from the bank will always put it as 2 cr, now that valuer will today put around 1 cr for the same property, therefore I wouldnt be able to take a 1cr loan which I desperately need.

This has put a lot of lives and businesses in danger.

Sid · Post by **Sid** » 09 Nov 2016 02:57

This step will hit bottom line of lot of politicians, Congies and BJP included. He may have earned respect from a billion people while loosing some highly powerful friends.

I think it will hit the hawala money channel which porkies were using to push money for separatists in J&K and other states.

But a super brilliant step by one and only PM Modi, hat tip sir.

MohdKav · Post by **MohdKav** » 09 Nov 2016 02:58

fanne wrote:Boss it is not that you loose your 500 or 1000 notes. You can deposit them. If you got this money through legal means and paid taxes, you deposit money, explain when it department inquires. If got through legal means but did not pay taxes, you pay taxes and penalty and the it department knows your real income now. It is fair to everyone. If You got this income through illegal means, like selling drugs or your country, well this was surgical strike aimed at you. Does it hurt? Well that was the intent.

What he is trying to say, most Indians who have small and medium trasnactions also have black money. Especially small businesses.

ranjan.rao · Post by **ranjan.rao** » 09 Nov 2016 03:01

Dinesh assuming you are not venting ur losses on BRF I am asking a geniune question(with no intention of feeding the troll)... please elaborate why INR has become untrustworthy? In fact it's purchasing power will be more accurate as govt will have a better estimate of the currency that will be floating in economy and will be less prone to volatility shocks induced by bulk movements of black money especially during the election times..

nirav · Post by **nirav** » 09 Nov 2016 03:02

The impact on property valuations and it's derivative market like lap products needs to be assessed in due course of time.

A 50% reduction in valuations is wild speculation and must be avoided..

Wait and watch how the situation evolves makes sense..

shyamal · Post by **shyamal** » 09 Nov 2016 03:02

Having black money - however small your business is and then crowing about how nothing was being done to fight corruption/swissbank etc etc

nirav · Post by **nirav** » 09 Nov 2016 03:07

MohdKav wrote:
What he is trying to say, most Indians who have small and medium trasnactions also have black money. Especially small businesses.

Correct.
They've been out of the tax net for way too long.

Either one is big or small, black money is cheating your country by not paying the right tax or none at all.

Can't really be a developed country with large sections of society big and small not paying their taxes.

If this move hurts them, well too bad. I'm glad it came!

All talk of nationalism without paying tax is just plain hollow !