HOME > SOCIETY > POLITICS > Demonetization: Swaraj India says political parties could become money laundering centers

Demonetization: Swaraj India says political parties could become money laundering centers

Swaraj India party today said the Income Tax department’s decision to continue to provide immunity to political parties from having to reveal their sources could turn them into money laundering centers.

According to Section 13(A) of the Income Tax Act, 1961, if you have registered a political party, you can deposit any amount of money after opening an account in that party’s name.

Swaraj India, which will organize a rally against black money in Delhi on Sunday, said the loophole for parties should have been plugged before or along with the demonetization move.

“You have created new rules for everyone, but you haven’t created a new rule for political parties,” Swaraj India leader Yogendra Yadav. “They want everyone to be clean, except themselves.”

Yadav also raised questions on Congress Vice President Rahul Gandhi’s sincerity in making sensationalist statements.

Several days ago, Gandhi said he has proof about Prime Minister Narendra Modi’s personal corruption that would cause “an earthquake” if revealed. But he has so far refused to reveal the details, despite relentless taunting by rivals like Arvind Kejriwal and Subramanian Swamy.

“He merely wants to make big allegations in the Parliament, taking advantage of the immunity offered to MPs,” Yadav said.

According to Indian law, one cannot be dragged to court for anything uttered in the Parliament. Otherwise, one can be thrown into jail for accusations for which one does not have any proof.

LAUNDERING POSSIBILITY

Under India’s Income Tax Act, religious institutions and political parties not only enjoy exemption when it comes to declaring the source of their income, but they also don’t need to pay tax on the same.

“Parties will become big centers of money laundering like religious places are now,” said Prashant Bhushan.

Bhushan said many temple authorities are offering to convert old currency into new ones by charging a 30% commission.

“Neither need to declare their sources. They can deposit any amount.. 5000 cr and say we got it as a donation.”

It is, however, not clear what kind of scrutiny is exercised when parties withdraw the amounts so deposited. For example, even if a party takes money from a corrupt individual and deposits it in the bank, it remains to be seen how it will be able to return the money to the individual when he demands it.

Many religious institutions, for example, have to get their expenditure audited and certified.

Asked if he intended to approach the Supreme Court on this matter, Bhushan was non-committal.

He said he already has a similar case in the Supreme Court about allowing political parties to take donations from foreign companies and organizations.

He accused politicians of duplicity as, on the one hand, they prevent non-governmental organizations like Green Peace from taking donations from abroad, but at the same time have no qualms about taking foreign funds themselves.

“You are preventing NGOs from accepting foreign donations saying they will fall under foreign influence which is not good, and on the other hand, you are letting political parties take foreign contributions,” he said, asking if foreign influence on political parties is any less harmful than foreign influence on NGOs.

Green Peace, an environmental NGO, has had its bank accounts frozen by the Modi government, which has tended to view global NGOs with suspicion. According to some in the government, many of these NGOs are misused by international organizations to slow down India’s economic growth in the name of protecting tribal rights, the environment and so on.

Unlike other parties, Swaraj India, led by Yogendra Yadav and Bhushan, has generally adopted a supportive stance towards Narendra Modi’s demonetization move and lauded the motive, but has been critical of the implementation.

Bhushan also said Modi has not taken action against the biggest fish in the black money game, which include the biggest businessmen in India.

Swaraj India Leaders addressing Press Conference on the issue of Black Money.#18DecHallaBol

Publicado por Swaraj India em Sábado, 17 de dezembro de 2016

Follow ULTRA.news
Demonetization hits real estate builder prices, but not resale flats – report Demonetization of 500- and 1000-rupee notes hurt the real estate sector in North India, while its impact on the sector in South India was negligible, according to Magicbricks’ PropIndex for Jan-March 2017.The report, brought out by the eponymous real estate classifieds site, ...
Delhi MCD Election Results Live: End of the road for AAP & Kejriwal BJP 181CONGRESS 31AAP 46OTHERS 12The initial trends from the Delhi Municipal Corporation (MCD) elections indicate that the prediction of exit polls of a demise for the Aam Aadmi Party have turned out to be correct.The BJP is all set to come...
Bhushan & Yadav’s Swaraj India chooses ‘whistle’ symbol for MCD polls Whistle, the symbol of most Swaraj India candidatesSwaraj India, the political outfit floated by breakaway Aam Aadmi Party faction led by Prashant Bhushan and Yogendra Yadav, will fight the upcoming election to the Municipal Corporation of Delhi on the 'whistle' symbol.T...
Indian Railways ticket refunds delayed due to demonetization rush Many people who booked railway tickets worth thousands of rupees during demonetization period and cancelled these tickets for refunds are yet to get their money back.According to Indian Railway sources, many of these people could end up waiting for 90 days or more to get thei...
SBI biggest beneficiary of demonetization, HDFC Bank close behind State Bank of India and HDFC Bank were the most successful in attracting and retaining deposits in the wake of demonetization of currency, according to an analysis of their deposits growth so far this financial year.The highest growth was reported by State Bank of India, wh...
Only 50% have responded to Operation Clean Money queries A flyer for Operation Clean MoneyThe number of people who have given their responses under the government's 'Operation Clean Money' has reached 8.38 lakh as of Mar 9, slightly less than half the 17.92 lakh people to whom questions have been sent.The questions were sent i...
Anti-corruption activists to conduct ‘Ghotala Yatra’ in Delhi on Thursday An umbrella group of anti-corruption groups will conduct a 'Ghotala Yatra' or 'Scam Procession' at Delhi's Mandi House area tomorrow.The rally, with the cry 'freedom from corruption' will start at 11 AM and be followed by a sitting protest at Jantar Mantar -- the traditional ...
Mining baron Sekhar Reddy arrested after Income Tax raids Sand miner Shekar Reddy has been arrested, two weeks after the seizure of crores of rupees and gold in an income tax raid. The arrest has come hours after Income Tax officials conducted a raid on Tamil Nadu's top bureaucrat chief secretary P Rama Mohana Rao at his home.It was...
Demonetization: RBI removes ‘explanation’ requirement for KYC accounts The Reserve Bank of India has responded to widespread criticism of its directive to collect 'explanations' from those depositing more than Rs 5000 by clarifying that this directive will not apply to bank accounts with proper documentation."On a review of the above, we advise ...
Demonetization: Modi announces bumper prizes; 15 lakh users to get 1,000 rupees Narendra Modi announced several 'prize schemes' to promote cashless transactions.Under the schemes announced today, there will be two sets of prizes for consumers and another for small merchants.Under the first scheme, any customer who uses any electronic form of payment,...
Demonetizaton: Govt places limits on last minute deposits The Reserve Bank of India said that any person who continues to hold old notes of 500 and 1000 rupees in bulk will get only one more chance to deposit them into bank accounts and will also have to provide an explanation for the delayed deposit."Tenders of SBNs in excess of ₹ ...
DEMONETIZATION: Wholesale Price Inflation falls to 3.15% in November The annual rate of inflation, based on monthly WPI, stood at 3.15% for the month of November, 2016 as compared to 3.39% for the previous month and -2.04% during the corresponding month of the previous year.The fall is largely expected due to the impact of the withdrawal of h...
Domino’s Pizza starts cashless facility for phone orders Domino's Pizza has started cashless payment facility for those who order by phone as well."Post demonetization, we have seen many customers choosing to order online. Consumers coming to our restaurants to dine in or carry out are able to pay With Credit caras or Wassets. Howe...
After pumps, Bata stores to provide cash withdrawal The story has been withdrawn by the company.
Modi says people who deposited others’ money may get to keep it all Opening a new front in the fight against black money, Prime Minister Narendra Modi today said people who were forced or tricked into depositing other people's money into their bank accounts may be allowed to keep the entire sum for themselves."Do not touch that money," Modi s...
Petrol Pumps, Airlines Will Not Take Old Notes From Saturday | DEMONETIZATION Old notes will no longer be accepted at petrol pumps and airline ticket counters starting from Saturday, according to sources.So far, petrol pumps and airlines had been given an exemption from demonetization of 500 and 1000 rupee notes.However, in an effort to control...
BJP asks all MPs, MLAs to submit bank statement to party As part of the ongoing crackdown on tax evasion and illicit funds, the Bharatiya Janata Party has asked all its MPs and MLAs to submit the full details of their banking transactions from Nov 8 onwards.The central leadership of the party will examine the bank statements of the...
DEMONETIZATION: How some earned lakhs standing in queues The government has banned over-the-counter exchange of old 500- and 1000-rupee notes due to suspected gaming of the system by those with black money. According to banking industry sources, the over-the-counter exchange system was being massively misused by hawala operators and ot...
Despite Demonetization, India will beat China in GDP growth: Fitch Ratings Despite a moderation in India's GDP growth rate in the short term due to cash crunch, the Indian economy will still grow faster than that of China, global ratings agency Fitch said."We still expect India’s GDP growth to trend higher than China’s in the medium term," said the ...
FULL TEXT: Ratan Tata’s statement on Demonetization Ratan Tata courtsey:tata.comRatan Tata, one of the most respected business figures in India and the chairman of Tata Trusts, has drawn attention to the practical difficulties faced by ordinary citizens in dealing with the ongoing currency exchange program.Tata, who was o...
Rahul Gandhi seeks Parliamentary probe into ‘leak of information’ ahead of demonetizatio... Congress Vice President Rahul Gandhi dismissed charges that the opposition was not speaking in one voice on demonetization and said the entire opposition is united in their demands.Asked whether the opposition parties wanted a roll-back, Gandhi said there were only two demand...
82,000 ATMs recalibrated out of nearly 2 lakh so far Banks have recalibrated 82,000 out of a little over 2 lakh ATMs in the country, economic affairs secretary Shaktikanta Das."It will be only a matter of a few days (more) till all the ATMs are recalibrated," Das said.To ease cash supply to the agricultural sector, a total ...
Fitch says demonetization gains may not last Fitch Ratings said the positive effects are unlikely to be strong and sufficiently enduring "to support credit profiles" and will impact GDP growth in the current quarter.Though the gains will be substantial in the short-term, they may not last as people may still go back...
Modi Govt to give ‘cashback’ on black money destroyed? He may not be able to deliver the Rs 15 lakhs, but according to a media report, Narendra Modi's government is thinking of transferring at least part of the black money destroyed through demonetization to Jan Dhan account holders.Jan Dhan accounts were opened in 2014 by econom...
No Note Exchange, only Account Withdrawals Tomorrow as banks take a breather There will no over the counter exchange of currency tomorrow (Saturday) as banks have requested for a one-day break from the heavy workload.The only exception will be for senior citizens.Deposits and withdrawals will continue."The entire staff of the banks have been d...