I-T Dept Mining Data Pile to Dig Out Unaccounted Income

ET-02 JANUARY 2017, Pg. 01.-

January 02 2017 : The Economic Times (Mumbai), Pg. 01.

I-T Dept Mining Data Pile to Dig Out Unaccounted Income

Deepshikha Sikarwar

New Delhi:

May put names involved in suspect transactions on website, making explanations mandatory

Anyone who has deposited cash or purchased highvalue items after the November 8 demonetisation not in line with income declared in tax returns may have reason to worry as the authorities sift through tonnes of data generated in the past two months or so. They are also using data analytics to parse for points of similarity to see if any attempt has been made to split up transactions to avoid suspicion.

The income tax department is likely to put such names on its website soon, making it mandatory for them to explain such transactions.

Armed with information on deposits and purchases in the wake of demonetisation, the tax department is pursuing presumed wrongdoing with unprecedented intensity.

“We are working on a new online mechanism whereby names of those whose deposits or transactions do not match will be put up and information be accessed via permanent account number (PAN) of the individual,“ said a senior Central senior Central Board of Direct Taxes official.

Deposits below `2.5 lakh could also come under the scanner. Data analytics is being used to look at various parameters like common addresses or phone numbers to detect suspicious accounts. Data analytics will also be used to find out whether accounts are held by members of the same family to determine the names of individuals who have made deposits not commensurate with their tax profile. Those who find their names on the website will likely have to log in to their income tax account using the PAN or create an account to access the query.

“We have information flowing in from different sources including Financial Intelligence Unit... We will be able to reach everyone,“ the official said.

Information received from various sources including suspicious transaction reports are being passed on to not just the investigation and intelligence wings but also field formations. These officials are already through with assessments this year and will now be focusing wholly on post-demonetisation data.

The income tax department has carried out 556 surveys and 245 searches between November 9 and December 29. Total currency seizures amount to `467 crore, of which new notes were over `105 crore. More than 5,000 notices have been issued so far for verification and about 228 cases have been referred to the Central Bureau of Investigation.

Pg. 18.

Jan 02 2017 : The Economic Times (Mumbai)

Jan Dhan A|c Deposits Double to Rs 87kcr

New Delhi:

Press Trust of India

Deposits in Jan Dhan account have more than doubled to `87,000 crore in 45 days post demonetisation, prompting the tax department to “dissect“ information relating to such deposits, a top government official said.

Besides, the tax department also has data on small cash deposits between `30,000-50,000 made in 4.86 lakh accounts totalling to `2,000 crore. Between November 10-December 23, the total deposits in Jan Dhan accounts reported is `41,523 crore in 48 lakh accounts. This, together with the total deposits of `45,637 crore as on November 9, takes the aggregate amount in Jan Dhan accounts to over `87,100 crore. “All these information received on Jan Dhan Accounts are being dissected. If it is found that money deposited in these accounts belong to some other persons, necessary action will be taken at appropriate time,“ the official said. Cash deposit between `30,000 and `50,000 have been reported in 4.86 lakh accounts till November 30, taking the total deposits in such quantum to Rs 2,022 crore. The official further said that inflows of funds into Jan Dhan accounts was the highest in the first week after demonetisation at Rs 20,224 crore, but after that the deposits went down substantially. “The inflow of funds in Jan Dhan accounts after the first two weeks was below `5,000 crore per week and thereafter it got reduced to about `1,000 crore per week,“ the official said, adding that the deposits have come down significantly after the tax department warned people not to allow their accounts to be misused for converting black money into white.

Prime Minister Narendra Modi had on November 8 announced junking of old `500 and `1,000 notes, and replaced the currency with new `2,000 and `500 notes. After setting a cash deposit limit of `50,000 in Jan Dhan accounts, the government had on November 18 cautioned account holders that they will be prosecuted under the I-T Act for allowing misuse of their bank accounts.

Pg. 12.

Jan 02 2017 : The Times of India (Mumbai)

BLACK OUT? –

Deposits in Jan Dhan acs double to Rs 87k cr

New Delhi

AGENCIES

Deposits in Jan Dhan accounts have more than doubled to Rs 87,000 crore in 45 days post demonetisation, prompting taxmen to “dissect“ information related to such deposits.

Besides, the tax department also has data on small cash deposits between Rs 30,000-50,000 made in 4.86 lakh accounts totaling to Rs 2,000 accounts totalin crore. Between November 10 and December 23, the total deposits in 48 lakh Jan Dhan accounts is Rs 41,523 crore. This, together with deposits of Rs 45,637 crore as on November 9 takes the aggregate amount to over Rs 87,100 crore.

“All these information received on Jan Dhan Accounts are being dissected. If it is found that money deposited in these accounts belong to some other persons, neces sary action will be taken at appropriate time,“ the official said. Cash deposit between Rs 30,000 and Rs 50,000 have been reported in 4.86 lakh accounts till November 30, taking the total deposits in such quantum to Rs 2,022 crore.

The official further said that inflows of funds into Jan Dhan accounts was the highest in the first week after de monetisation at Rs 20,224 crore, but after that the deposits went down substantially . “The inflow of funds in Jan Dhan accounts after the first two weeks was below Rs 5,000 crore per week and thereafter reduced to about Rs 1,000 crore per week,“ the official said, adding that deposits have come down significantly after the tax department warned people not to allow their accounts to be misused.

Pg. 1 & 4.

Jan 02 2017 : The Economic Times (Mumbai)

Inside story

Hoarders Afraid of Tough PM: Naidu

The fear of a tough, honest prime minister has made black money hoarders fall in line, Urban Development Minister M Venkaiah Naidu tells Nidhi Sharma and Ravish Tiwari. The minister blames the Congress-led UPA government for the problem of black money and says the controversial note recall decision was not a sudden one.

Jan 02 2017 : The Economic Times (Mumbai)

ET Q&A - Fear of Tough PM Makes Hoarders Fall in Line

M VENKAIAH NAIDU INFORMATION & BROADCASTING MINISTER

Calls Manmohan Singh a failed economist, FM and prime minister

Demonestisation is like chemo therapy to cure the cancer of black money, Urban Development and I&B Minister M Venkaiah Naidu tells Nidhi Sharma and Ravish Tiwari. The minister blames the Congress-led UPA government for the problem of black money and says the controversial note recall decision was not a sudden one. Edited excerpts:

How do you think the note recall decision would affect the BJP politically? How do you assess a government's performance?

There are three yardsticks ­ outcome of elections, opinion polls and response to its leaders.If you see the recent elections, BJP is expanding its base. Whether it is Arunachal Pradesh, Assam, Madhya Pradesh, West Bengal (the voteshare has gone up) or Tripura (pushing Congress to the third position), it is a clear indication BJP is becoming more and more popular under Modi's leadership.

After demonetisation, local body elections in Maharashtra, Rajasthan, Gujarat and Panchayat elections in Gujarat took place. Then in Chandigarh, the Congress fought only on demonetisation and the BJP won 20 of the 22 seats it contested. One seat it lost by 25 votes.

All this speaks of the growing popularity of the Prime Minister and the growing appeal of the BJP. People believe that this is a big transformation required for the country despite the inconveniences they suffered.

It is unparalleled in the history of any country; people have shown their loyalty towards a leader. They have understood our message ­ short-term pain for long-term gain.

Has the note recall exercise been successful?

Fear has made black money hoarders fall in line.The fear is that here is a tough Prime Minister, an honest man who will not compromise. Laws were always there. But law is being implemented now.

Do you think the management could have been better?

There is always scope for improvement. Initially the banks worked very well. But subsequently some of the acts indulged in by some crooks in the banking sector disturbed everybody, including us. Wherever we could do anything, we did.

Didn't you take an economic risk with the notes recall when you were looking at an economic growth rate of 7.6%?

No. The latest figures show that it could still be 7.1%. There is a recession in the international market. Still you are growing at 7.1%. There will be some setbacks initially.There will be some temporary setback to growth also but it is required. If you are affected by a disease like cancer you need to undergo chemotherapy. If you do chemotherapy, there are some side effects like hair fall. The choice is yours, either you have hair fall or you fall.

The government is not worried about people losing their jobs?

Of course we are worried. But this is only temporary. When we are going for reform, there will be some pain... Congress vice-president ahul Gandhi said in L&T these many jobs were ost. I spoke to L&T chairman Subramaniam, he aid it's wrong. I spoke to Tiruppur Exporters ssociation president. He said 95% of the people re using these coupons and opening accounts.

here is no major loss of employment. There was some for some time but once the system orrects itself and the economy picks up, there would be more opportunities. The agriculture ector is not affected negatively.

What is your response to former Prime Minister Manmohan Singh's charge of monumental mismanagement?

Manmohan Singh has held every economic position in this country.He has been RBI governor, finance minister and our prime minister. Wasn't it his responsibility to curb black money?

I am sorry to say Manmohan Singh is a failed economist, a failed finance minister and a failed prime minister. It is because of his government and his party's monumental mismanagement that we have the problem of black money. He seems to have spoken out of vengeance. We are in this mess because of them.

What do you have to say about the impatience of the one-time NDA partner Mamata Banerjee?

She is aiming for something big, something higher. She is thinking that she can be the main alternative.

The Opposition is linking this move to UP elections...

It is not a sudden move. This was always on the Prime Minister's agenda. The first item on our first Cabinet meeting on May 27, 2014, was the formation of SIT under Justice M B Shah. All our steps over the years have been towards checking black money. We have signed international agreements.

Is black money history in India?

Yes, definitely. You cannot say that with this move alone the entire black money will go. It is not only in cash but also in kind. The ultimate aim is to move towards digital transfers.

Pg. 1

Jan 02 2017 : The Economic Times (Mumbai)

After Wallet Cos, Modi now Brings Cheer to Digital Lending Firms

Mugdha Variyar

Bengaluru

PM announces inclusion of NBFCs in the credit guarantee scheme for SMEs

While Prime Minister Narendra Modi's November 8 speech announcing the currency ban move served as a bonanza for digital payment and mobile wallet companies, his New Year eve speech has opened up opportunities for digital lending players, including startups in the space.

The PM had announced the inclusion of non-banking financial companies (NBFCs) in the credit guarantee scheme for small, medium and micro enterprises (SMEs) and also extended the scheme for loans up to 2 crore.` The credit guarantee scheme for SMEs was so far open only for banks, and the inclusion will help new-age NBFCs such as Capital Float and Lendingkart reach out to more borrowers.

“This is the first time that the government has opened the credit guarantee scheme for NBFCs, and this is a big move. NBFCs are reaching (out) to SMEs in every nook and corner and covering us under the scheme will help in reaching out to more borrowers,“ said Harshvardhan Lunia, cofounder of Lendingkart, which has so far lent to 7,500 SMEs.

“So far, NBFCs had to take the entire risk only by themselves, and some were still conservative in lending to borrowers who may not have been eligible under conven tional norms,“ said Lunia.

The current credit guarantee scheme includes term loans or working capital facility up to  100 lakh per SME borrower, extended without any collateral security or third-party guarantee. It was so far applicable only to scheduled commercial banks and some regional rural banks.

The guarantee cover available under the scheme is to the extent of a maximum 85% of the sanctioned amount.

“Extension of credit guarantees to NBFCs will help innovative players like us to penetrate under-served, new-to-credit borrower segments,“ said Capital Float cofounder Sashank Rishyasringa. “Such guarantee schemes from the government have significantly helped digital lenders scale up in other economies like the UK. It shows confidence in the NBFC sector's ability to drive financial inclusion,“ he said.

Pg. 11.

Jan 02 2017 : The Economic Times (Mumbai)

After PM's Nudge, Banks May Shift Focus to Small Cos

Saloni Shukla

Mumbai:

CHANGE IN STRATEGY

Modi told banks not to ignore small entities

For the first time in two decades, banks in India will be redrawing their priorities, focusing on smalland medium-sized companies rather than giant infrastructure builders because of which they have accumulated massive bad loans.

This shift in strategy has been prompted by Prime Minister Narendra Modi's message to banks reminding them that they can't ignore smaller entities of Indian business who are crucial for employment generation.

“I wish to make an appeal to the banks. History is witness that the Indian banking system has never received such a large amount of money , in such a short time,“ the Prime Minister said in his address to the nation on Saturday . “While respecting the autonomy of banks, I appeal to them to move beyond their traditional priorities, and keep the poor, the lower middle class, and the middle class at the focus of their activities.“

The PM also said that banks should also not let this opportunity pass by and they should take appropriate decisions in public interest.

“It is fairly evident that the government is serious about comprehensive inclusion,“ Arundhati Bhattacharya, chairman, State Bank of India, said. “Initiatives aimed at benefiting the lower-income segments of the country is indeed a welcome move by the government.“

“The package announced by the PM is quite comprehensive as it covers MSMEs, housing, pregnant women and senior citizens. It will provide a huge boost to rural housing and MSMEs,“ said Chanda Kochhar, MD & CEO, ICICI Bank.

PM Modi announced a slew of measures that would boost employment and improve the health of the struggling MSME sector. The government which underwrites bank loans up to Rs 1 crore given to small businesses has now extended the limit to `2 crore. Now, this scheme will also cover loans given by NBFCs.

“This decision will enable better access to credit for small shop owners and small enterprises,“ Modi said. “Banks and NBFCs will not levy high interest on these loans, as the Government of India is bearing the cost of underwriting them.“

The government has also asked banks to raise the credit limit for small industry from 20% of turnover to 25%. Banks have also been asked to increase working capital loans from 20% of turnover to 30%, for enterprises that transact digi tally.

“This entire de monetisation ex ercise has given the much-needed boost to India's journey towards becoming a less cash economy,“ Shikha Sharma, MD & CEO, Axis Bank, said.

The government has also decided to double funds under the MUDRA Yojna, especially targeting Dalits, tribals, backward classes and women.

While the PM praised the work done by the bank staff in the last 50 days, he also sent out a stern message to those who are gaming the system. “Some grave crimes by some officers in some banks have come to light,“ Modi said. “Some government officers have also committed serious offences, and tried to take advantage of the situation.They will not be spared.“

The PM also stressed that the government machinery was working towards restoring normalcy in the banking system.

Pg. 18.

Jan 02 2017 : The Economic Times (Mumbai)

245 Searches



May put names involved in suspect transactions on website, making explanations mandatory

Anyone who has deposited cash or purchased highvalue items after the November 8 demonetisation not in line with income declared in tax returns may have reason to worry as the authorities sift through tonnes of data generated in the past two months or so. They are also using data analytics to parse for points of similarity to see if any attempt has been made to split up transactions to avoid suspicion.

The income tax department is likely to put such names on its website soon, making it mandatory for them to explain such transactions.

Armed with information on deposits and purchases in the wake of demonetisation, the tax department is pursuing presumed wrongdoing with unprecedented intensity.

“We are working on a new online mechanism whereby names of those whose deposits or transactions do not match will be put up and information be accessed via permanent account number (PAN) of the individual,“ said a senior Central senior Central Board of Direct Taxes official.

Deposits below `2.5 lakh could also come under the scanner. Data analytics is being used to look at various parameters like common addresses or phone numbers to detect suspicious accounts. Data analytics will also be used to find out whether accounts are held by members of the same family to determine the names of individuals who have made deposits not commensurate with their tax profile. Those who find their names on the website will likely have to log in to their income tax account using the PAN or create an account to access the query.

“We have information flowing in from different sources including Financial Intelligence Unit... We will be able to reach everyone,“ the official said.

Information received from various sources including suspicious transaction reports are being passed on to not just the investigation and intelligence wings but also field formations. These officials are already through with assessments this year and will now be focusing wholly on post-demonetisation data.

The income tax department has carried out 556 surveys and 245 searches between November 9 and December 29. Total currency seizures amount to `467 crore, of which new notes were over `105 crore. More than 5,000 notices have been issued so far for verification and about 228 cases have been referred to the Central Bureau of Investigation.

TOI-02 JANUARY 2017, Pg. 03.

Jan 02 2017 : The Times of India (Mumbai)

Home loans cheapest in 6 years as SBI slashes rate 50 basis pts

Mumbai:

TIMES NEWS NETWORK





Union Bank, PNB Too Cut Rates, Pvt Banks To Follow

Home loan rates have fallen to their lowest level in six years with State Bank of India, the country's largest lender, cutting the effective rate to 8.6% from 9.10%.

While SBI cut its one-year marginal cost of lending rate (MCLR)--the benchmark to which home loans are linked --to 8%, against 8.9% earlier, it kept the spread above MCLR at 60 basis points, against 20 basis points earlier. So, home loans up to Rs 75 lakh, earlier available at 9.1%, can now be taken at 8.60%. For others, the rate would be 8.65%, against 9.15% earlier.

Besides SBI, Union Bank of India and Punjab National Bank also cut rates. Private sector banks like ICICI Bank are expected to follow suit.

TOI had carried a frontpage report on January 1, say ing SBI and other banks were set to cut rates following a prod from Prime Minister Narendra Modi to signal that benefits of demonetisation in the form of record deposits are being shared with the poor and middle class.

The reduction in the lending rates by several public sector banks will make the affordable home loan scheme, announced by PM Modi on Sunday , available at a little over 4% for borrowers seeking loans of up to Rs 9 lakh.Details of the scheme are yet to be announced. The reduction in MCLR will mean that new bor rowers will get loans at the cheaper rates. Since home loans are linked to oneyear MCLR, the rates are locked in for 12 months. Older loans will get the benefit of the new rates only after their one-year lock-in ends. Those who had availed loans before April 2016 would have their EMIs linked to the earlier benchmark, the base rate.These borrowers will have to enter into a fresh contract with the bank (by paying a small fee) to get loans linked to MCLR.

SBI has also reintroduced a teaser rate loan, where loans will be avilable at 8.5% for the first two years and at a floating rate in subsequent years. These loans were discontinuyed five years ago after RBI frowned on them. Other banks which have announced lower rates with effect from the New Year include State Bank of Travancore, IDBI Bank and Indian Overseas Bank. Top officials of SBI said that home loans would provide the bank with an alternative to parking funds in government bonds where the return is less than 7%.

Meanwhile, banks expect the interest subvention on lo the interest subvention on loans for affordable homes and home extensions and small enterprises to counter the slowdown caused by monetary contraction following demonetisation. The impact of the schemes is expected to be felt in lending and on the overall economy in the first quarter of FY18.

“Today , 45% of bank loans is going to only 300 companies. The extreme concentration of bank credit on the top end of the corporate sector has begun to border on the ridiculous,“ said Rajiv Lall, MD & CEO, IDFC Bank. He added that the announcements by the Prime Minister would help rebalance this by encouraging loans to small business where the framework has already been created with the help of payment systems and bank accounts.

Lall also welcomed the fact that the government was encouraging small lending through market related programmes as compared to the past when priority sector lending was in the form of a diktat. “From our perspective this is extremely positive and will help us further in penetrating into the segments we serve. With these announcements, the challenges that all faced following demonetisation would clearly be history,“ said Kapil Wadhawan, chairman and MD, Dewan Housing Finance Corporation.

According to Gagan Banga, vice chairman and MD, Indiabullls Housing Finance, subsidised home loans will find many takers as the EMI cheque will now be smaller than the rent cheque.“This is a tremendously positive announcement coming on the back of many directed steps to realise the 'Housing for All' objective. Along with the Credit Guarantee for SMEs, this will ensure small business owners and middle class salaried customers will be able to achieve progress in their business and move out of rented homes to own their own house,“ said Banga.

Pg. 1.

Jan 02 2017 : The Times of India (Mumbai)

Moneylenders cash in as bank loans to farmers dry up

Bhavika Jain

Mumbai:



SIDE-EFFECTS OF DEMONETISATION

Demonetization seems to have helped private moneylenders in Maharashtra. Of the Rs 13,558 crore of loans required for the rabi season, banks could disburse only about Rs 2,400 crore, or close to 18% of the total requirement, because of a shortage of cash. Also, there are restrictions on district co-operative banks (DCCBs). Officials said the crisis has given moneylenders an opportunity to get rid of defunct notes as loans were disbursed in old notes and they will be paid back in new notes.

The rate of interest levied by moneylenders ranges from 24% to 120% per annum, depending on the loan amount and time period. In comparison, ban ks lend at an interest of 9-15% per annum.

Of the amount disbursed, Rs 857 crore was given from DCCBs and the rest from commercial and private sector banks. Sowing this rabi season has been 120% of last year, and on 92% of the average area available for the rabi crop, which prompted increased borrowings from the private and informal sectors. About 45 lakh hectares is available for sowing in the state. Rabi sowing has almost come to an end. The season typically begins in October and the crop is harvested in March. The state government had allowed farmers to buy seeds and fertilisers using Rs 500 and Rs 1,000 notes, using Rs 500 and Rs 1,000 notes, which helped money lenders even more as their notes were absorbed in the market.

“The area under rabi cultivation has gone up despite the small amount of bank loans being disbursed. This has meant that funds have been provided from sources outside the formal banking sector. After demonetization, giving loans took a back seat in the state,“ said an official from the co-operation department.

Demonetisation was announced around the time sowing had just picked up in Maharashtra. The receding monsoon was very good in the state--a favourable condition for the rabi crop, which depend on moisture in the soil. Following subsequent issues with the banking system, farmers borrowed at high rates from private money lenders.

“With weather and soil water content just right for a good produce, farmers couldn't give up on the season due to a lack of bank loans, and so they resor ted to borrowing from moneylenders,“ said farmers' leader and activist Vijay Jawandhia.

But productivity may be affected. “Farmers haven't spent much on fertilisers due to the high interest rates, which will reduce productivity considerably,“ Jawandhia said. To reduce borrowings, far mers haven't taken insurance cover for fragile crops. Nevertheless, the deadline for insurance premium has been extended to mid-January , with the government trying to convince farmers to enrol for the scheme.

Pg. 3.

Jan 02 2017 : The Times of India (Mumbai)

4 tonnes of gold worth Rs 1,250 crore sold in just 2 days

Pradeep Thakur

New Delhi:



More than four tonnes of gold worth over Rs 1,250 crore were sold within 48 hours of the announcement of demonetisation of high-value currency notes on Novemb er 8, according to a survey con ducted by the Directorate Gen eral of Central Excise Intellig ence (DGCEI).

Two tonnes of the precious metal were sold on November 8, probably the highest retail sales on any given day , officials claim, raising suspicion of hu ge money laundering activiti es, allegedly to convert banned currency notes into gold. A le ading Delhi-based jeweller had sold 45kg gold to 700 people on November 8, showed entri es found in its accounts. A day before, the jeweller had sold just 820gm.

Lalita Jewellers in Chennai sold 200kg of gold jewellery on November 8. A day before (November 7), the jeweller had sold less than 40kg, according to entries detected by the central excise officials who surveyed the accounts.

Jaipur's Laawat Jewellers had reported 100gm of gold stock on November 7, but its sales exceeded 30kg on November 8. The jeweller is under investigation. The government has already detected a central excise duty evasion of Rs 20 crore based on the sales admitted by over 400 jewellers surveyed across the country since demonetisation. The duty evasion is likely to touch Rs 100 crore once the scrutiny is completed, say officials.

The DGCEI survey was initiated after reports of money tiated after reports of money laundering started pouring in from different parts of the country soon after demonetisation of currency notes of Rs 500 and Rs 1000 denomination.The DGCEI operations covered at least 400 top jewellers and bullion traders across the country . The agency has since served more than 300 notices to jewellers for suspected tax evasion and money-laundering.

Last week, DGCEI raided India's largest chain of gold jewellery , Thrissur-based Joyalukkas, and found that the company had sold more than 5.7 tonnes of gold jewellery between April and November but had not paid the mandatory 1% central excise duty applicable since April 1, 2016 on sales of jewellery .

At least 11outlets and factories of Joyalukkas were searched by DGCEI officials in different cities and a notice for central excise duty evasion of Rs 16 crore was served on the company , a senior DGCEI official confirmed. The company , which has presence in almost all major cities in India besides Dubai and Abu Dhabi, has paid Rs 10 crore in duty after the DGCEI searches.

Joyalukkas, according to DGCEI officials, had sold more than 5,754 kg of gold jewellery between April and November worth over Rs 1,500 crore.Though most of the sales detected so far are accounted for and reflected in its account books, the company is facing charges of tax evasion for not paying the central excise duty .The DGCEI has also conducted a survey on the Delhi-based PP Jewellers and asked the company to pay Rs 4.5 crore in central excise duty . The jeweller, claim DGCEI officials, had sales worth Rs 450 crore between April and November and had a tax liability of Rs 4.5 crore. PP Jewellers, say sources, has already paid Rs 2 crore after the DGCEI notice.

These unusual sales are what the top jewellers have admitted in their books of accounts and do not include large-scale illicit sale and smuggling of gold bricks. For instance, the I-T department had in a single raid in Chennai last month seized 170 kg of gold. A similar raid by the Directorate of Revenue Intelligence and the Enforcement Directorate had unearthed hundreds of kgs of unaccounted gold, allegedly procured with banned currency .

Amnesty scheme for entry tax evaders

To fill its empty coffers, the Rajasthan government has launched a voluntary amnesty scheme for entry tax evaders in the new year. Under this scheme, a dealer or a person with entry tax outstanding of up to Rs 5 crore can apply for benefits, which include complete waiver of interest and penalties if they fulfill certain conditions. The scheme is open for dealers against whom penalties have been imposed under sections 12, 15 or 31 on or before March 31, 2013.

Pg. 3.

Jan 02 2017 : The Times of India (Mumbai)

Speculators lock up nearly 13L flats in housing-starved Mumbai region

Nauzer Bharucha

Mumbai:



Despite a severe lack of affordable housing in the Mumbai Metropolitan Region (MMR), almost 13 lakh of the total 87.67 lakh homes remain vacant or locked, according to the draft MMR Regional Plan, quoting data from the 2011 Census.

This is the single largest issue facing the MMR (spread over 4,300 sq km) which has some of the highest real estate prices in the world. The MMR has a population of over 22 million, covering Greater Mumbai, parts of Thane and Rai gad districts and including areas like Thane, Kalyan-Dombivli, Vasai-Virar, Mira-Bhayander and Navi Mumbai.

Although substantial housing stock is added each year, most of it is being bought as “speculative investment''.“There is thus an active speculative market that is investing in real estate and creating substantial housing stock,'' said the draft plan. Housing stock increased at a hi gher growth rate in Badlapur and Panvel council areas followed by Navi Mumbai, Thane and Mira Bhayander Corporation areas.

“People are forced to locate further and further away from the core city of Greater Mumbai (where the majority of formal jobs continue to be located) in search of affordable housing,'' it said.

The Census 2011 house listing data reveals that the total number of houses available in major municipal areas in MMR exceeds the number of households by as much as 54%. Technically, this implies that there should be no housing shortage. Despi te this there is a dearth of housing in the region due to the fact that 14% of the houses are vacant and 21% are put to uses other than residential uses,'' said the report, adding that “considerable disincentives'' for renting prevents this stock from actually becoming available as housing.

Nearly a third of the MMR's households (27%) live in slums. Of this, Greater Mumbai has the highest share of slum households in MMR (79% with over 11 lakh households). Thane (5.2% with 73,256 households) and Bhiwandi (4.7% with 65,208 households) have sizeable slum households. The largest share of slum population is in Ambernath (63%) followed by Bhiwandi-Nizampur (50%) and Greater Mumbai (41.33%) and the smallest is in Vasai-Virar municipal corporation (3%).

Almost 50% of the households live in slums, dilapidated houses and unauthorized houses in the urban areas of MMR, indicating that a major share of the population does not have access to formal, affordable housing of an acceptable standard. The per capita living space in Greater Mumbai is the lo west at 40 sq ft to 60 sq ft. “Housing prices are inversely proportionate to the distance from the island city ,'' said the report. Private developers do not build low income group housing and for the economically weaker sections. On the other hand, government agencies like the state housing authority (Mhada), MMRDA and Slum Rehabilitation Authority (SRA) are expected to build barely 50,300 homes between 2011 and 2021. But of these, only around 8,630 units will be fresh stock since the remaining 41,670 units are replacement units by SRA and MMRDA.

“The public sector is playing an increasingly diminished role in the direct provision of affordable housing and houses provided by the private sector cater largely to the high income groups and are beyond the reach of the majority of the population. Renting is not encouraged,'' said the report.

“People are therefore forced to locate themselves to distant suburbs in search of affordable housing at locations connected by suburban rail to Greater Mumbai, often commuting for a couple of hours in each direction,'' it added.

The draft plan envisages that a housing stock of 44.42 lakh homes will have to be created to house an additional 77 lakh people expected in MMR by 2036. Of these, over 15 lakh can be built through redevelopment of dilapidated buildings and slums. Another 7 lakh houses can be generated for sale in the open market through these redevelopment schemes.

Thane, Vasai-Virar, Navi Mumbai, Mira-Bhayander, Ulhasnagar, Kulgaon-Badlapur, Panvel and Alibaug don' t have sufficient land for creation of housing stock required for their projected populations,'' it said. “In the remaining cities, adequate vacant developable land is available to accommodate the estimated housing need, which is to the tune of approximately 1,000 hectares (2,500 acres). Requirement of land for new housing development in the rest of MMR can be met by the urbanisable zones proposed in the Plan in their vicinity,'' said the draft plan.

 Pg. 4.

Jan 02 2017 : The Times of India (Mumbai)

Graft falls 35% as `cash crunch leaves no money for bribery'

Ahmed Ali



Cases of corruption against public of ficials registered by the Maharash tra anti-corruption bureau (ACB) in November and December 2016 fell by 35% from the same period in 2015. An ACB officer attributed this to demonetisation, saying the cash crunch has left little money for bribery .

Overall, cases of corruption and disproportionate assets registered by the ACB in 2016, at 993, are down by almost 20% from 2015, when1,234 cases were registered. In 2014, a comparable 1,245 cases were filed. If cases of disproportionate assets are looked at individually , from 48 in 2014 and 35 in 2015, they fell to 14 in 2016.

ACB officials say corruption has gone down due to their continuous campaign against it on social media and at government offices.

Here's a closer look at the effect of demonetisation. In November and December 2016, the ACB registered 120 offences, down 35% from 184 offences filed in the last two months of 2015. “As people were rushing to deposit old notes of Rs 500 and Rs1,000, there was no black money left with them. Corrupt babus, worried at the situation, in panic disposed off their own black money ,“ said an ACB officer.

Meanwhile, the state revenue department continues to have the dubious distinction of being the most corrupt, followed by the MMDRA, the police, Panchayat Samitis, the BMC and the education department. In 2016, the ACB booked 223 officials of the revenue department, 224 cops, 109 officials of Panchayat Samitis, 52 officials from the MMRDA, 50 BMC officials and 49 education department officials from all over the state for graft. ACB officials said Pune (186 cases) is the leading city on the state's corruption chart, followed by Nashik (153), Nagpur (137), Thane (124 ), Aurangabad (116), Amravati (110) and Nanded (104). Mumbai has only 66 of fences of corruption.

“Corrupt officials have become smart and are not taking risks. They don't directly accept bribe. Instead, they deploy middlemen, making it difficult for us,“ said an ACB official.

Pg. 12.

Jan 02 2017 : The Times of India (Mumbai)

Central excise duty evasion may touch Rs 100cr

TNN



More than four tonnes of gold worth over Rs 1,250 crore were sold within 48 hours of the announcement of demonetisation of high-value currency notes on Novemb er 8, according to a survey con ducted by the Directorate Gen eral of Central Excise Intellig ence (DGCEI).

Two tonnes of the precious metal were sold on November 8, probably the highest retail sales on any given day , officials claim, raising suspicion of hu ge money laundering activiti es, allegedly to convert banned currency notes into gold. A le ading Delhi-based jeweller had sold 45kg gold to 700 people on November 8, showed entri es found in its accounts. A day before, the jeweller had sold just 820gm.

Lalita Jewellers in Chennai sold 200kg of gold jewellery on November 8. A day before (November 7), the jeweller had sold less than 40kg, according to entries detected by the central excise officials who surveyed the accounts.

Jaipur's Laawat Jewellers had reported 100gm of gold stock on November 7, but its sales exceeded 30kg on November 8. The jeweller is under investigation. The government has already detected a central excise duty evasion of Rs 20 crore based on the sales admitted by over 400 jewellers surveyed across the country since demonetisation. The duty evasion is likely to touch Rs 100 crore once the scrutiny is completed, say officials.

The DGCEI survey was initiated after reports of money tiated after reports of money laundering started pouring in from different parts of the country soon after demonetisation of currency notes of Rs 500 and Rs 1000 denomination.The DGCEI operations covered at least 400 top jewellers and bullion traders across the country . The agency has since served more than 300 notices to jewellers for suspected tax evasion and money-laundering.

Last week, DGCEI raided India's largest chain of gold jewellery , Thrissur-based Joyalukkas, and found that the company had sold more than 5.7 tonnes of gold jewellery between April and November but had not paid the mandatory 1% central excise duty applicable since April 1, 2016 on sales of jewellery .

At least 11outlets and factories of Joyalukkas were searched by DGCEI officials in different cities and a notice for central excise duty evasion of Rs 16 crore was served on the company , a senior DGCEI official confirmed. The company , which has presence in almost all major cities in India besides Dubai and Abu Dhabi, has paid Rs 10 crore in duty after the DGCEI searches.

Joyalukkas, according to DGCEI officials, had sold more than 5,754 kg of gold jewellery between April and November worth over Rs 1,500 crore.Though most of the sales detected so far are accounted for and reflected in its account books, the company is facing charges of tax evasion for not paying the central excise duty .The DGCEI has also conducted a survey on the Delhi-based PP Jewellers and asked the company to pay Rs 4.5 crore in central excise duty . The jeweller, claim DGCEI officials, had sales worth Rs 450 crore between April and November and had a tax liability of Rs 4.5 crore. PP Jewellers, say sources, has already paid Rs 2 crore after the DGCEI notice.

These unusual sales are what the top jewellers have admitted in their books of accounts and do not include large-scale illicit sale and smuggling of gold bricks. For instance, the I-T department had in a single raid in Chennai last month seized 170 kg of gold. A similar raid by the Directorate of Revenue Intelligence and the Enforcement Directorate had unearthed hundreds of kgs of unaccounted gold, allegedly procured with banned currency .

Amnesty scheme for entry tax evaders

To fill its empty coffers, the Rajasthan government has launched a voluntary amnesty scheme for entry tax evaders in the new year. Under this scheme, a dealer or a person with entry tax outstanding of up to Rs 5 crore can apply for benefits, which include complete waiver of interest and penalties if they fulfill certain conditions. The scheme is open for dealers against whom penalties have been imposed under sections 12, 15 or 31 on or before March 31, 2013.