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Bringing Back Black Money

Bringing Back Black Money

Media made the people of India to intently look at the horizon believing an election promise unaware of the continued flight of illegal money. During Lok Sabha election campaign it was reportedly revealed that black money to the tune of Rs 80 lakh crore (80,00,000 Crore Rupees worth) was stashed abroad and it was promised that it would be brought back. The SIT formed by the Hon'ble Supreme Court is engaged in some efforts.

Those who do not have direct dealings with Indian Customs may not know how is it possible to take out so much money.

Since 2008 every year in December Global Financial Integrity brings out a report on Illicit Financial Flows from Developing Countries_ 2003-2012. According to December, 2015 report, daily about Rs.10,000 crores on an average goes out of India illicitly. It would be wiser to find ways and means to stop the illicit flow forgetting the past promise. Just like some urbanites who think that rice grows in trees, few in higher echelons of tax administration have knowledge about the field-level mal-functioning of the system.

The Author of this article is a superannuated promotee Civil Servant who has wide on-hand experience in various levels. He has spent about a decade thereafter to keenly watch the maladies and deliberated with right-minded officers to find remedies. The Author does not know everything but he knows a few things which certainly would be worth acted upon. An ounce of experience is worth more than a ton of theoretical scholarship.

On this page, every week one topic will be presented for criticism.

P. Jacob, Principal Educator, Right Informer Intl.Forum (Registered Trust since 2007)

02 November, 2016

Central Board of Excise and Customs (CBEC)  Customs Manual, 2015 Para 3.1 of Chapter 8 reads: -

 “Apart for collection of duty, Customs has also been entrusted with the responsibility to ensure compliance with prohibitions or restrictions imposed on the import and export of goods under the Foreign Trade Policy (FTP) and other Allied Acts. The Customs has a pivotal role to play because, it is the agency stationed at the border to enforce the rules, regulations and orders issued by various administrative Ministries. For instance, import and export of specified goods may be restricted/prohibited under other laws such as Environment Protection Act, Wild Life Act, Arms Act, etc.”

Customs barrier has to be crossed whatever goes out or comes into the country.  So, Indian Customs plays  paramount role in the Rs.10,000 crores Illicit Financial Flows from India daily.  Most of the Sections of the Customs Act, 1962 and the rules, regulations, circulars, and instructions are porous enough for the fraudsters to escape unnoticed or if caught unpunished.  Over the time, Adjudicating authorities, Tribunals and the Courts enlarge the loopholes that nothing can be prevent smuggling.  To make the matter worst, the officers of customs are law to themselves and everyone did as s/he saw fit. All these became possible on account of their becoming outdated, or obsolete and if at all amended or revised, done in perfunctory manner. 

To be continued: