special
of addressing this issue once and for
all. “This move should improve India’s
position on transparency and corruption
in the global league table enabling higher
capital flow into India,” said Binani.
While people are busy promulgating
that the step would help containing black
money there are some more areas that
may get hit by this step namely — terror
organizations finance as they are mainly
run by the black money which are mainly
being stashed into the form of Rs 500
and Rs 1000 denominations, push to
bullion market as the move would push
the industry to move towards organized
sector leaving the dubba trade and other
age old malpractices, liquidity to the
Indian economy as people having black
money will have very little option than
to show their black money and pay the
income tax being levied on them, scarcity
of money to the political parties going
to polls in coming assembly elections in
2017 etc.
There are some other steps that may
follow suit like — scaling down to coinage
which would include up to Rs 100 means
soon the government of India may think of
scrapping the small denomination Indian
currencies up to Rs 100 as people able
to save some of their black money may
switch to small denomination notes and
hence the Modi government may think of
blowing final punch to their war against
graft. In second phase, the government
may also think of cracking down on the
lockers of people who think they have
saved their black money by buying gold
bricks pushing the bullion market to its
best seller day during the November 8
and 9.
The move is expected to pave way
for the dream home buyers as the black
money involved into the real estate sector
has not allowed the residential realty
prices to scale down even though they
have been in overbought condition for
long.
Anuj Puri, Chairman & Country Head, JLL
India — a leading real estate consultancy
firm in India — said, “The banning of
higher currency notes is a major move
which will help curb unaccounted-for
cash in the real estate sector. We have
just witnessed a tremendous step towards
increased transparency in the Indian real
estate industry. The effects will be farreaching and immediate, and shake up
the sector in no uncertain way.”
Puri said that stricter measures against
black money have for long been required
to help bring
about greater
t ra n s p a re n c y,
give the Indian
real estate sector
more credibility
and make it
more attractive
for
foreign
investors. Black
money
deals
are more common on the unorganized
market, but this practice has, in fact, been
on the decrease with greater awareness
on the part of buyers. Before too long, the
caricatured version of black money driving
Indian real estate is no longer applicable.
There may be different views on
penalty on people revealing cash in bulk
but to some extent it looks that the Modi
has given up to the black money stashers
by giving them some window to liquidate
their huge cash through hospitals,
railways, airports etc. There has been
huge booking registered in railways after
the surgical strike on the parallel economy
and people shouldn’t get astonished
if huge cancellation is registered post
December deadline for submission of the
Rs 500 and Rs 1000 currency notes. Even
the finance minister has been repeatedly
clarifying that no penalty would be levied
on people depositing small amount which
is probably below the taxable slab. So,
Modi is more in bringing the black money
into the economy than to kill and convert
those cash into trash.
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November 16-30, 2016 The Dayafter
19