The Gavankars

A big motorcade comes crawling through alpine roads and mountains and stops in front of a heritage looking mansion in a secret Swiss town....a fat guy with hat and sunglasses comes out from a limo and enters the building in the protection of 4-5 guards and vanishes into a "vault " .The secrecy is supreme and this guy only operates his vault with a single number combination..no questions asked. ....sounds familiar ? Yes then either you are watching too many Hollywood mystery movies or trusting some of our joker politicians or "yoga gurus" ( ! ) who made you believe that India's billions of dollars worth illegitimate money is "stashed away" in Swiss Banks ! EVERY opposition party in India has cursed EVERY ruling government of not "bringing back" "swiss bank me pada hua kala paisa " ( Black money stashed in Swiss banks ).Today's ruling party of India went one step ahead in their election campaign that if each penny stashed in Swi...

Ok...Now that you have read my Part 1 and Part 2 of Black money myths ..(If not please read them on the same blog you or on ), let us discuss one more point which is always debated on whether the big fish who already have invested their money in real estate will face any pinch or it is only the commoner which will suffer who has to stand in line at the bank to exchange the demonetised currency  !Even in my own friend circle there are critics who feel that big black money sharks will not face any heat as "They don't keep notes at home " and "all money is in real estate already man ! " :-) Let's understand how the black money is "invested" ( ! )  in real estate at the first place  . 1.When a builder launches a project,he has to first buy land from the landowner and this payment is depending on the city/locality normally is paid in 40 to 50 % cash.The agreement is still done at government ready reckoner rate and thus the black money is generated in ...

Ok...so those of you who are reading this post....please take some time to first read part 1 which I published in 2014 .The link can be found here  Earlier this week Indian Government demonetized the old currency notes of Rs 500 and Rs 1000 in a surprise move and this has indeed far lasting impact on the fight against the black money. Assuming you read my post (part 1 ),and by now you know that when the cash stashed away by evading tax still has a value of legal tender then this money is indeed used again in economy by some way .I had given the example of builders and jewelers there. Now with recent move,this very cash which is lying with "tax evaders " is worthless overnight...This cash can't be SPENT on anything as no one will accept it and hence it will be out of circulation. Liquidity at stake !The only option is to deposit this money in bank and the come out open with source of income for many ,which is difficult as the window provided by government for volunta...