A presentation on Black Money in India with some of the case studies.

1. Black Money.

2. Black money is:
• the currency used in ‘black economy’.
• the proceeds, usually received in cash, from underground
economic activity.
• earned through illegal activity and, as such, is not taxed.
What is ‘Black Money’?
Fact: Once the huge amount of black money and property comes back to India , the
entire foreign debt can be repaid in 24 hours.

3. • Gambling
• Undervaluation of Asset and Over Valuation of Liabilities
• False Income Statement
• Drug trafficking
• Weapons trading
• Terrorism
• Prostitution
• Selling counterfeit or stolen goods
• Selling pirated versions of copyrighted items such as software and musical
recordings and
• Through any other act forbidden by law.
Sources of ‘Black Money’.
Fact: After paying the entire foreign debt from retained black money, we will have
surplus amount, almost 12 times larger than the foreign debt.

4. To be at a safer side the recipients of the black
money moves their black income by using the
following two sources:
• By Hawala system.
• Depositing in Swiss Bank.
Movement of ‘Black Money’.
Fact: If the surplus amount after retaining the black money is invested, the amount
of interest earned will be more than the annual budget of the Central government.

5. Hawala:
• also known as hundi
• origins in classical Islamic law
• an informal value transfer system
• based on the performance and honour of a huge network of
money brokers.
• no promissory instrument
Hawala System.
Fact: After retaining black money even if all the taxes are abolished, then also the
Central government will be able to maintain the country very comfortably.

6. • 1854 - Swiss Bank Corporation(SBC).
• 3rd largest in Switzerland with over 300 billion CHF(Converted Swiss
Francs) of assets and 11.7 billion CHF of equity.
• 1998 - SBC merged with UBS, the largest bank in Europe and the 2nd
largest bank in the world.
• The company's logo - three keys - “Confidence, Security and
Discretion“.
Swiss Bank.
Fact: If the black money is retained the Government will have enough money to run
the country for 30 years.

7. ‘Black money’ and Corruption.
• Black money & Corruption are two sides of the same
coin.
• Dishonest Industrialists, Scandalous Politicians and
corrupt officials have deposited in foreign banks in
their illegal personal accounts a sum of about
$1500 billion.
Fact: If the total Black Money is recovered then every Indian can have one Tata
Nano car and every new born baby can be gifted with the same for next 1 year.

8. Top 5 countries generating ‘Black Money’.
INDIA $1,456 BILLION (NEARLY 76,00,000/- CRORES)
RUSSIA $470 BILLION
U.K. $390 BILLION
UKRAINE $100 BILLION
CHINA $96 BILLION
Fact: If black money is brought home and added to our GDP of Rs 55 lakh crore our new
GDP would become Rs 363 lakh crore, we will become No. 2 after USA in terms of GDP.

9. Total ‘Black Money’ in economy?
• Swiss bank revealed India has more money than rest
of the world.
• The second highest, Russia has 4 times lesser black
money as compared to India.
• U.S. is not even there in the counting in top
five.
• India has more money in Swiss banks
than all the other countries combined.

10. Top 5 scams in India.
•2G Spectrum Scam.
•Commonwealth Games Scam.
•Telgi Scam.
•Satyam Scam.
•IPL Scam.

11. • Known as India’s biggest scam.
• Person responsible was telecom minister Mr.
A. Raja.
• Evaded norms at every level and gave
fictitious licenses.
• Amount involved in the scam: 1.76 lakh
crores.
2G Spectrum Scam.

12. Indians hang their head in shame on global front.
Revelations by the Central vigilance council:
• Discrepancies in tenders.
• Payments to non-existing parties.
• Willful delays in execution of contracts.
• Over inflating price of sports equipment.
• Misappropriation of funds.
• Person responsible: Mr. Suresh Kalmadi.
• Amount involved in the scam: Rs. 35000 crore.
Commonwealth Games Scam.

13. • Abdul Karim Telgi mastered the art of preparing
fake stamp papers.
• Sold them to various banks and other financial
institutions.
• These stamps were sold across 12 states.
• Various government departments were involved
in the scam.
• Person responsible: Abdul Karim Telgi.
• Amount involved in the scam: Rs. 20000 crore.
Telgi Scam.

14. The scam that shattered the investors:
• The books of accounts were fudged.
• Scam took place for more than a decade.
• Revenues and profits were inflated.
• Shareholders were kept in the dark.
• Biggest corporate fraud.
• Person responsible : Mr. Ramalingam Raju.
• Amount involved: Rs. 14000 crore.
Satyam Scam.

15. The Shame behind entertainment:
• The Indian Premiere League(IPL) was
considered as the best form of entertainment
in the country.
• But slowly its darker side emerged.
• IPL commissioner Mr. Lalit Modi and external
affairs minister Mr. Shashi Tharoor were the
persons involved.
• Claimed to have stakes in many IPL teams.
The IPL Scam.

16. • High rates of taxes.
• Complicated Tax-laws.
• Numerous controls, licenses and other governmental
regulations.
• Lack of control by the government.
• Lack of awareness among public.
Major reasons for generation of ‘Black Money’.
Fact:
Fact: Total black money of Indians in other tax haven countries (60 countries) is Rs 158 lakh
crore. total black money of Indians outside India (100+158) is Rs 258 lakh crore.

17. Consequences of ‘Black Money’.
• Poverty.
• Inflation.
• Reduces Development.
• Illegal transfer of funds from India to other
countries.
Fact: In India more than 450 million people live below the poverty line.

18. • Amnesty Scheme by the govt.
• Simplify/Rationalize tax laws.
• Reduce red tapism.
• Use technology for economic intelligence.
• Co-ordination with other countries.
• Stringent laws to curb money laundering/corruption.
• Creation of awareness among students on the evil of black money.
• Regulation on election spendings and donation to political parties/
organizations.
Measures to be taken to reduce ‘Black Money’.
Fact: Every year almost 80000 people travels Switzerland. Out of these around
25000 travels frequently. Those who travel frequently might be travelling for some
reasons, this should be investigated.

19. Black money has created a big black hole
in Indian economy & the entire burden is
beared by the common people of India.
To stop corruption which creates black money,
we the people of India have to come forward
to fight against corruption.
Conclusions.

20. Thank You.
Presented By-
A. Ashwathama.
Dipti Kamble.
Adwait Sahasrebuddhe.
Vivek Sharma.
Nidhi Shetty.
Sagar Wagle.