Bharat Rakshak

SaraLax wrote:

hanumadu wrote:
I don't know what the editor is thinking, but if the total currency of 500/1000 bills in circulation is 15 lakh crore, how can 14 lakh crore be black money. Even if it is, any thing less than that amount deposited is good as it is less liability for the govt and it is not the same as getting away.

I tend to agree with you ... there is a mismatch somewhere in the editor's calculation.

Bart S wrote:

SaraLax wrote: I tend to agree with you ... there is a mismatch somewhere in the editor's calculation.

If I am not mistaken, that was from the Hindu or Businessline. We know where their sympathies lie, so it's expected that they would try and put some spin on it.

jagga wrote:Just get a electricity connection with your honesty and white money in business premises. Of course, you will remain a harishchandra , premises wont have electricity and hence no black money! Simple!

Supratik wrote:I can't believe that some guys on a forum called "Bharat Rakshak" are actually in favor of continuation of the black economy. Cannot remember this type of degeneration in the last 20 years on this forum. If you have to tackle the problem you have to start somewhere and some people will be hurt.

PS: The same people who take bribes from the businessmen are also see their stack burn. So some have suggested that this should be done periodically till the overwhelming majority enter the white economy. So this may not be a one off thing. Currently 4% of the global economy is cash-based. In India it is 4%. I expect some people to now move to the cash-less economy and some going back to the black economy till the next surgical strike.

Supratik wrote:I can't believe that some guys on a forum called "Bharat Rakshak" are actually in favor of continuation of the black economy. Cannot remember this type of degeneration in the last 20 years on this forum. If you have to tackle the problem you have to start somewhere and some people will be hurt.

PS: The same people who take bribes from the businessmen are also see their stack burn. So some have suggested that this should be done periodically till the overwhelming majority enter the white economy. So this may not be a one off thing. Currently 4% of the global economy is cash-based. In India it is 4%. I expect some people to now move to the cash-less economy and some going back to the black economy till the next surgical strike.

hanumadu wrote:

As for the mop-up of old ₹500 and ₹1,000 notes, any sum less than ₹10 lakh crore flowing back into the banks would suggest that the hoarders have somehow got away. The amount is calculated on the assumption that black money, according to 2007 World Bank estimates, is 24 per cent of the GDP, or ₹34 lakh crore in 2015-16, of which the cash component is estimated at 40 per cent or ₹14 lakh crore. We may assume that 30 per cent of this money will not return to the system, fearing investigation by income-tax authorities, which would leave us with ₹10 lakh crore. It is also worth noting that black money cannot be unearthed merely through this step, as those at the apex of the pyramid have devised smarter ways of squirrelling their wealth away. In order to prevent a shift in concealment from cash to property, laws need to be tightened as well.

I don't know what the editor is thinking, but if the total currency of 500/1000 bills in circulation is 15 lakh crore, how can 14 lakh crore be black money. Even if it is, any thing less than that amount deposited is good as it is less liability for the govt and it is not the same as getting away.

SaraLax wrote:

Bart S wrote:

If I am not mistaken, that was from the Hindu or Businessline. We know where their sympathies lie, so it's expected that they would try and put some spin on it.

Well -it is the Businessline, which IMHO is not a left leaning business newspaper even though the HINDU is one heck of a stubborn leftist news paper (the grating Guardian of India that even resorts to lying to tarnish the current government and shamelessly issues corrections one week later).

rohitvats wrote:On the real estate sector, please go easy on this crash bit.

In any market, there is a ratio of genuine end-users to investors. A speculative market has more of the latter while a more balanced market has more of the former. It is when the ratio gets tilted towards investors that you've the bull run in property prices.

And what fuels the investors and bull-run? Loads of black-money!

But the market have been flat for 2+ years now. While the developers might not have explicitly reduced the prices, the prices have seen implicit correction. If you index property prices to inflation, you'll see that most of the stock is actually selling at same price as was two years earlier. Or in some cases, the price post adjustment to inflation has actually gone down.

Similarly, in the secondary or resale market, the prices have remained stagnant or actually come down.

On an average, realty market has not even given 5% return per annum over last three years.

What this means is that investors and speculators have long exited the market. The impact of today's decision would've been felt strongly if it would've sucked out the money chasing real estate asset class. This would've led to some price correction. But that money is simply not there.

So, IMO, take a chill-pill; property prices are not going to fall through the roof! There is another very big reason for it - the stock in the market is not homogeneous. But explaining that will take a long time. Some time later.

BTW, I'm witnessing signs of slight uptick in the property purchase. Only purchase, mind you. Not prices.

Thing is, people have become very vary of construction or delivery risk. Developers have delayed projects and many buyers + investors are stuck. Genuine end-users end up with twin burden of EMI + monthly rental due to project delay. This made many first time buyers to put off their purchases.

But what is happening now is that many of these much delayed projects have reached completion/occupancy or will be doing so in H2-2016 or 2017. Genuine end-users are opting for such projects where there is minimal delivery risk. In fact, I've observed that ready-to-move properties have slight premium over under-construction properties.

kvraghav wrote:Why would traders keep govt babu's black money with them? The cash is withdrawn and distributed. The expenses are only cooked to show that amount as expense but it is never held as cash. What is held as unaccounted cash is actually the game we did for yourself.

MohdKav wrote: A deal was to be made last week, it got pushed to this week.

Bank loan against land depends on the valuation by a valuer and capacity to repay. Its hard to raise enough of cash for my medium term plans, but enough for short term, but asset valuations are going to be iffy from now, and banks are going to be 'more' stricter on land backed loans.

I am just trying to understand how the Government intends to handle some negative's created by this event which is largely very positive

Supratik wrote:@habal,

I will ask the same question again. If I can buy a cell phone with a receipt why can't I buy mithai with a receipt.

shiv wrote:I read somewhere that 1 crore in Rs 1000 notes is 12 Kg. In 100 Rupee notes it is 100 kg.

Supratik wrote:@habal,

I will ask the same question again. If I can buy a cell phone with a receipt why can't I buy mithai with a receipt.

Supratik wrote:I know I am just using it as an example. I can understand the panwala, biriwala, sabjiwala etc doing that but I think the traders themselves are not honest. Another target should be those involved in Exim. They generate a lot of BM and stash abroad.

shiv wrote:

Supratik wrote:@habal,

I will ask the same question again. If I can buy a cell phone with a receipt why can't I buy mithai with a receipt.

In Bengaluru there are hundreds of mithai shops that sell with receipts. Normal practice. of course street vendors don't do that

Jharkhand: Man arrested for attempting to deposit cash for Maoist rebel

Sicanta wrote:Just visited 12 atm's nearby, both private as well as psb's. All closed down. One by syndicate was working but when the branch closed at 8, they must have shut down the server of the atm.

What happened to all the news about banks being opened till 9?

Rishi Verma wrote:In India there are too many of these small time vendors, some even have 8-10 bananas to sell, some just a small bag of peanuts. One can't expect him / her to give a receipt. What gov can do is let them operate but charge them a fixed fee of some nominal amount. It's coming to a village near you whether one likes it or not.