The data about the #ElectoralBonds released by the EC has prima facie shown that it was another grand scam like
the #Demonitisation (Demo for short).
The similarities are quite
striking.
In the case of Demo, the #RBI
was used as a shield. In the case of the
Political Electoral Bond (PEB for short), it was the #SBI.
In Demo, the Government said
that the intention was to wipe out black money and fake currency (issued
primarily by Pakistan).
But, what was hidden under the carpet
from the eyes of the gullible common man is that black money is not related to
the currency held in one’s hand. It is
related to whether it is accounted for (not merely accounted) and has been
subjected to tax that it ought to have been.
It changes from its nature of being black or white depending upon with
whom it is at the time of the transaction, when it was required to be accounted
for and subjected to tax. With the next
transaction, it changes the colour depending upon whether the recipient was
required to account for it and had to pay any tax and whether it was done so or
not. For example, if a person who has
earned money that should have been subjected to Income Tax, but he either did
not account for the said transaction in his IT returns and spent the money for
purchase of groceries on a large scale and gave it away to some organization which
fed the poor, the money has changed hands, is not taxable at the hands of the
grocery merchant, if he is below the IT limits and is not going to be taxed at
the recipient end, which is the organization feeding the poor (exempted as a charitable organisation). Yet, the liability of the person who did not
account for the income remains. To get
hold of that tax, no end of chasing of the currency would matter. Because, from
the grocer, it could have changed hands to a whole-sale merchant, who might
have accounted for it or not and from there to some other supplier or to a
manufacturer or down the lane to some other persons. And if the money has reached the hands of an agriculturist it becomes non-taxable and thus is white at that point.
The second example is that of a
person who earns money which is taxable, but shows it in his book of accounts
under a category of non-taxable receipt.
This money also changes many hands.
Classic case is incomes shown as generated out of agricultural
activities, even if no such activity had been undertaken. There is no use in chasing that currency
because it does not stay with the person who has stained it.
Thus, black money could be
essentially and properly checked only by means of checking the accounts and
investigating those who have filed false returns or evaded tax. Not by going after the currency in the hands
of all and sundry. Thus this stated
objective itself was false.
Regarding the next stated
objective regarding checking fake currency, it is indeed directly related to
the currency.
But during the Demo exercise,
when exchange of notes was made mandatory, there was no mechanism to check
whether the currencies obtained across the counter were fake or not. Since there was no mechanism of noting down
the number of the currency and from whom it has been obtained, even if it is
stated that the Banks subsequently undertook a verification of the genuineness of the currency, there
was no way they could have tracked down the person who exchanged it. They had also by that time issued genuine
currency in that place.
Then of course, as revealed in
the Sekhar Reddy episode where crores worth of currency in Rs. 2000 denomination had been
seized during a raid, within days of demo, even as people were standing in queues
to get two such notes, all transactions did not necessarily take place across
the counters and some persons were lucky enough to get them exchanged in lump sum. It is another thing that subsequently the
case was said to have been closed on finding that all that was ‘accounted’. This again proves the disconnect between the
colour of the currency and the colour of the accounts.
All the more important is that
there is no statistics revealed by the RBI regarding what number of such fake
currency had been thus got exchanged for new genuine ones.
The other issues that they
stated regarding fake currency were (a) that it was enabled due to imported
paper used for printing the currency in India and (b) due to high denomination
currency in circulation.
These stated objectives were
also proved to be a mere eye wash when subsequently paper for printing currency
was imported again and a still higher denomination (Rs 2000) currency was
issued in the place of Rs. 500 and Rs. 1000 thus making it more luring and profitable to issue
fake currency (in a higher denomination).
The final tally of the currency
which had come into the RBI also disproved the Government claim that it
expected that there will be a deficit of 15% of the money in circulation when
it comes back and thus it will be the net saving. The total number of currency which came in
was almost 100% (99.3% as per RBI) to that which was issued.
The counting in the last phases became very slow beating even Ravi Shastri’s
innings at the finals of the Benson and Hedges in 1985.
In the case of Political Electoral
Bonds it was stated that the intention was to stop illegal political funding. The second limb was the assurance that the identity
of the donors will be maintained to ensure that there will not be victimization.
Here again, the legality or
illegality of political funding does not depend merely upon whether the fund
has come through banking channels. First criterion is regarding whether it is
accounted on both the sides, whether it has suffered the eligible tax
deductions and then whether there is any quid-pro-quo for the said donations.
What the details of the PEB
revealed by the SBI have shown is that there is every indication that the
funding has been for some quid-pro-quo.
Either it is in the way of contracts, obtained or to be obtained; or to
wriggle out of some case already booked or to be booked by any of the agencies
like CBI, IB, ED, etc. These could
obviously be operated only by the parties in power, whether at the Center or at
the States and thus, the entire funding itself is obviously illegal,
irrespective of whether it came through the bank or not. That the donors have
donated beyond their capabilities as per their own books of account again
evidence that merely because it came through banks, it is not white money.
As in the case of Demo, here again
it is proved that black and white do not depend merely on being accounted or
coming in through banking channels.
People who still do not understand this difference shall continue to be
duped again and again by the advertised concept of transparency through banking
transactions.
Secondly, when the scheme said
that the donations will be anonymous – at least to those not involved in it- it
was quite contrary to the requirement for any banking system to reconcile receipts
and payments; to verify whether the bonds that were being realized were the
ones actually issued by the institution itself; that no cash purchase was
possible and only through bank accounts; that Banks had to take the KYC of the
donors; that realization could be done only by way of deposit in another bank
account and when such data is available with the institution, no anonymity is
possible, particularly from the eyes of the Government and when the scheme
itself stated that the data should be provided if demanded by a competent
Court, the said declaration of providing cover or protection to the donor
itself was misleading. If at all there was any intention of keeping it anonymous,
it was only from the knowledge of the public, who are the citizens, called upon
to vote, in the name of promises, from time to time.
In the above scenario, when the
Bonds were having an alphanumeric identity, the SBI taking a stand after 16 or
17 days of the Supreme Court order requiring them to reveal the details of the
bonds, that they found it difficult to match the donors and recipients
(something the Court had never required them to do in the first instance) is
obviously a lie. Once the data was out, people
have been able to match it within a few hours. Because all of us know that the
SBI and Mr. Harish Salve were saying the lie with impunity only because they,
like anyone else knew that they had the backing of the Government, no action
could be expected against them for making such a statement. Nor will they be hauled up for not
understanding simple English which required them to reveal all details, and instead
they chose to misunderstand it in a very complicated way, ‘in the light of some
paras of some earlier judgment’. If any
ordinary mortal had attempted such tricks before even the lowest court in the
land, he would have landed up in jail.
But mighty Government is mighty due to their having gained absolute
majority.
When the alphanumeric details
of the bonds were released, it only confirmed the quid-pro-quo nature of all these
donations. The time line, the amount
involved and the parties involved have made it obvious regarding the purpose
for which these donations took place.
They were definitely ‘not in the national interest’. If they had
anything to do with elections, then it was only for further illegal dealings
using the said money.
This episode not only revealed
yet another hollowness of the claims of the BJP Government, but also shows how
brazenly people are being taken for a ride in the name of tall promises of
cleaning up the economy or the system.
As a last ditch attempt, the SBI
and FICCI, ASSOCHAM, etc were made to attempt to thwart revealing the
alphanumeric details of the PEB. Mr.
Harish Salve appearing for the SBI openly sought a declaration from the SC that
no PILs should be entertained on the basis of the information. Mr. Mukul Rohatgi representing the
Associations of the Industries and Commerce/Corporates (donors) said that they feared that
there will be a witch-hunt once the data is revealed.
The episode once again shows
how the BJP let down those who believed in them – that they will deliver on the
stated objective.
It could also be a pointer that
the trade or captains of Industry fear that BJP may not come back next time and
hence they may be in trouble since the contributions to BJP is the
highest. Otherwise, why should they talk
about witch-hunt?
From this revelation, what is
clear is that the very persons who came to power in 2014 in the name of
cleaning up politics and the economy have only further muddied them and in the
process the investigating agencies have blatantly and brazenly been misused to suit
the needs of the party in power.
The other thing is that there
is no difference between any of the political parties. Either they get money through deals for
contracts, or through some policy that might help only someone who give them
money, or by threats of raids, arrests, etc.
The one who came up promising to be a messiah against all these ills has
proved to be only a master of these techniques.
When it becomes blatant that
investigations could be launched against any one and pre-trial arrest itself
will be seen and propagated as evidence of guilt and the persons could be bound
down, even Judges cannot remain fearless in such an atmosphere. Then, to expect that in the face of such
misuse, Judiciary can come to the rescue is also difficult to believe,
always.
One Dhanjaya cannot don all
roles and all times. He is not after all
Krishna Paramatma.
In such a scenario, democracy
becomes a farce, because there is no level playing field. Russia also conducts elections. But we do not consider them democratic any
more.
So more than the monetary
element, what is at the back of the Bond is the revelation that we are in deep
trouble as a democracy and as a state.