THIS POST IS CONTINUED FROM PART 16, BELOW--
WE ASK MODI TO TRAIN A NEW DEPT FOR FINANCIAL FRAUD DONE BY SHELL COMPANIES AND OFFSHORE MONEY LAUNDERING
THEY CAN PICK UP MASALA FROM THIS BLOGPOST
PAY THESE PEOPLE WELL , SO THAT THEY DON’T FALL PREY TO BRIBES
MAKE SURE THEY HAVE DETERMINATION TO START AND JOB AND THE COMPLETE IT.
THE INCOME TAX DEPT ( AS OF NOW ) DO NOT HAVE THE WHEREWITHAL TO UNDERSTAND THE DEEP UNDERCURRENTS OF SHELL COMPANY MONEY LAUNDERING
WHY HAS THE GOVT OF INDIA NOT TAKEN ACTION AGAINST INDIAN BANKS FOR GIVING OUT HUGE LOANS TO SHADY BUSINESS PEOPLE?
Zoom Developers, with an exposure of Rs 3000 crore, Winsome Diamonds, with an exposure of Rs 4,600 crore, Forever Precious Diamonds and Jewellery (Rs 2,121 crore), Kolkata-based basmati rice exporter REI Agro (Rs 4,000 crore), Deccan Chronicle (Rs 5,000 crore)etc..
According to the Finance Ministry data, the NPAs of the country's largest lender State Bank of India is Rs 97,356 crore, followed by Rs 54,640 crore of Punjab National Bank and Rs 44,040 crore of Bank of India..
A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of Bond finance principal has remained 'past due' for a specified period of time. NPA is used by financial institutions that refer to loans that are in jeopardy of default.
In the last one to two years, NPAs in PSBs have increased rapidly, and now touch a perilous 6-lakh crore mark. Many banks are grappling with the issue of insufficient capital to absorb sudden losses on account of increase in bad loan provisioning.
Concerns arise of promoters using shell entities to buy back assets seized by banks at much lower prices.. The Reserve Bank of India (RBI) has warned banks to be cautious about the entities to which they sell assets acquired on account of loan defaults..
According to SDR rules, banks can convert loans to a majority equity stake in the borrower and find a buyer within 18 months. The rules further stipulated that banks would have to establish that the buyer does not belong to the existing promoter group.
RBI has now re-emphasized this point to bankers and asked them to ensure there are no back-door connections between the existing promoters and the buyers
The key aspect of a bank’s capital is its ability to absorb losses in the normal course of operations. While it is true that much of the bank’s activities are funded by deposits, these have to be repaid at a future date.
Hence if a bank’s fund base only consists of such borrowed funds (no capital), then in case of a loss on account of defaults by its borrowers, it would not be able to honour the demands from its depositors.
Regulatory efforts around Capital Adequacy Ratio (CAR) ensures that banks fund risk-weighted assets with at least a certain amount of capital. Capital Adequacy Ratio (CAR), also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk.
National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements. It is a measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures.
This ratio is used to protect depositors and promote stability and efficiency of financial systems around the world. Two types of capital are measured: tier one capital, which can absorb losses without a bank being required to cease trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of protection to depositors.
Also known as capital-to-risk weighted assets ratio (CRAR), it is used to protect depositors and promote the stability and efficiency of financial systems around the world.
Basel III (or the Third Basel Accord) is a global, voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk. Basel III is an international regulatory accord that introduced a set of reforms designed to improve the regulation, supervision and risk management within the banking sector.
The Basel Committee on Banking Supervision published the first version of Basel III in late 2009, giving banks approximately three years to satisfy all requirements. Largely in response to the credit crisis, banks are required to maintain proper leverage ratios and meet certain minimum capital requirements.
The rising tide of non-performing assets (NPAs) has been one of the major factors affecting Indian banks’ profitability. By March 31, 2019, all banks will have to implement a set of new norms set by the Switzerland-based Basel Committee for Banking Supervision.
Given the state of the balance sheets of many public sector banks (particularly the smaller, weaker ones), it is doubtful if they will be able to meet the Basel III norms.
While the Basel Committee makes a virtue of the fact that the guidelines are voluntary, central banks are free to impose penalties, from fines to removal of licence, on individual banks that do not follow the rules.
Most central banks allow banks some leeway in terms of deadline extensions (the Reserve Bank of India has already extended the deadline by a year for Indian banks), but overall, they are keen that the Basel norms be adopted as a preventative measure
The shadow of the U.S. subprime crisis still looms large over the world of finance.
The Basel III norms have been designed to absorb shocks arising from financial and economic risks, thus reducing the risk of a spillover from the financial sector into the real economy. The basic idea of these guidelines is that banks need to shore up their capital during good times, and not be caught unawares when the tide turns.
The Reserve Bank estimates that banks will need an additional Rs 5 lakh crore to become fully Basel III compliant—Rs 3.25 lakh crore in bonds and other instruments, and 1.75 lakh crore in equity infusion. Of the Rs 1.75 lakh crore, public sector banks alone will require at least Rs 1.4 lakh crore.
HAVING SAID ALL ABOVE —
PM MODI , PLEASE REMEMBER
INDIA MUST NOW LEAD THE WORLD – IF WE HAVE TO BE THIS PLANETs NO 1 SUPERPOWER IN 16 YEARS .
WE ARE AN INDEPENDENT SOVERIGN NATION AND WE SHALL NOT BE PUSHED AROUND BY BASEL THREE ( ZIONIST JEWS ) -- OR FOR THE MATTER PHASSEL THREE--- OR WHATEVER
The former chairman of Axis Bank, P.J. Nayak, called for the setting up of a Bank Investment Company (BIC) under the Companies Act, 2013. The RBI appointed Nayak Committee with the main responsibility of making recommendations about the working of bank boards and suggest corrective measures .
Formation of BIC: The Government should set up a Bank Investment Company (BIC) to hold equity stakes in banks which are presently held by the Government. The BIC would be constituted as a core investment company under RBI registration and regulation, and its business would be like that of a passive sovereign wealth fund for the Government's banks.
The Government and BIC should sign a shareholder agreement which assures BIC of its autonomy and sets its objective in terms of financial returns from the banks it controls. BIC in future will appoint directors to the boards of PSBs according to merit.
Nearly 36% of the total Rs 2.67 lakh crore of NPAs have been created by six sectors—infrastructure, metals, textiles, chemicals, engineering, and mining.
All Indian PSU banks, including SBI, PNB, BoB and BoI, have stakes in various businesses, which fall outside their core areas. The finance ministry has asked state-owned banks to prepare a list of their non-core assets and sell them off at an opportune time. The move would help lenders raise capital and allow them to focus on their core businesses
By selling off these stakes, banks can raise much-needed money to bolster their capital bases to comply with Basel-III guidelines
For example, SBI has subsidiaries like SBI Insurance Company, SBI Dfhi, NSE and many other companies. Similarly, PNB has stakes in PNB Housing, PNB Gilts and UTI Asset Management, among others. Bank of Baroda and Bank of India too have stakes in many companies operating outside the banking sector.
According to finance ministry estimates, PSBs will require Rs 1.8 lakh crore in additional capital over a period of four years ending March 2019. Against this, they are expected to raise Rs 1.1 lakh crore from the market and through the sale of non-core assets.
SBI has expressed its intention to pare its stake in some of the subsidiaries, including its life insurance firm.
JEW ROTHSCHILDs INSURANCE COMPANIES ARE GASSED UP AND READY .
MAJJA HAI.. KHULLA MAIDAAN … THANK YOU “MY FRIEND ARUN”
EXAMPLE-WHY OUR BANKS ARE UP SHIT CREEK WITHOUT A PADDLE?
WISDOM : No capital is required for a well-run bank and no amount of capital can save a badly-run bank
Zoom Developers, an Indore-based engineering and logistics company, owes more than Rs 3,000 crore to a consortium of 25 banks led by Punjab National Bank. The loans were issued to the group between 2005 and 2009. Zoom Developers has been accused of siphoning off the money and promoter Vijay Choudhary is absconding.
Zoom has allegedly diverted funds borrowed from these banks to 350-odd subsidiaries, related parties based in India and abroad, and to purchase jewellery for the wife of its promoter, Vijay Chaudhary. The banks collectively issued guarantees of Rs 3,000 crore, the collateral with them is only Rs 150 crore. Zoom Developers’ main business was scrapping a plant and then relocating it. In 2004-05, the company decided to use five aggregators, mostly from Europe, to get international orders.
Zoom used to sign contracts with these aggregators to execute projects for third parties. The aggregators would make advance payments to Zoom and used to secure this with a bank guarantee from an Indian bank of an equal amount issued to the company.Investigators have found that the foreign aggregators were not independent parties. For instance, Chaudhary’s son was a former director of London-based Llondenium Trading, one of the aggregators.
The ED says that others like Astikor AG, Project Engineering Management and Hi-Tech Engineer were all controlled by Chaudhary through a trust called Beverin Stiftung in Liechtenstein. Chaudhary is the sole beneficiary of the trust set up in 1997-98. Bebra Engineers did not operate from its registered address. There was a Zoom subsidiary operating from the same address.
In 2006, some lenders of Zoom asked it to raise capital. Zoom, in turn, borrowed money from other lenders and diverted it to Bebra Engineers which in turn gave this money to five shell companies. These shell companies then individually invested the money in Zoom Developers. This cycle was repeated for three years till the company’s capital increased from Rs 40 crore in 2006 to Rs 500 crore in 2008..
Zoom diverted at least Rs 287 crore out of the Rs 410 crore borrowed from Punjab National Bank for projects in China and Singapore. So far, the ED has identified 30 properties of Zoom Group and multiple foreign bank accounts of Chaudhary. The ED has issued letter rogatories (LRs) — a request for assistance from an Indian court to a foreign court through the External Affairs Ministry – to Singapore, US, Italy, Germany and Switzerland asking them to help with the investigation.
ED has issued an order for attachment of 1,208 acre land worth Rs 1,000 crore in Soledad in California.. Kabra was on the board of at least 150 companies connected to Zoom Developers in India and Singapore, US, Dubai and Philippines. According to Zoom’s bank statements, a lot of money was diverted to these group companies..
Zoom Developers (P) Ltd, and its promoter are linked to an offshore trust registered in the British Virgin Islands (BVI).. ED said that all foreign entities were controlled by Choudhary and most of the projects and contracts, claimed to have been bagged offshore by Zoom, were fake. Such entities were floated by Choudhary with the help of Kabra to cheat banks and to siphon off money.
Various fake contracts/invoices were also prepared by them to cheat Indian and foreign banks.. In June 0214, Central Bureau of Investigation claimed that several vital documents pertaining to the case have been stolen in a conspiracy involving some of its own officials.
According to the audit, Zoom Developers diverted at least 35 per cent of the borrowed money to subsidiaries. Another 15 per cent was siphoned off to shell companies such as Bebra Engineers P Ltd and Zio Technologies Pvt Ltd.
Vijay Chaudhary, the promoter of Indore and Mumbai-based Zoom Developers, sought loans from a number of Indian banks to develop properties in Europe and the US.The value of the property attached in the US is believed to have a market value of Rs 1,000 crore
REI Agro was a basmati exporter and was also the co-sponsor of the IPL team, Delhi Daredevils, in 2013.
Winsome Diamonds, was exporting jewellery to Dubai with false stocks and inflated invoices.
In his Budget speech on 1 February 2017, the Union Finance Minister stated that we are largely a tax non-compliant society. His statement signals a serious deficit in tax compliance, reflected in the relevant numbers - ..
Out of 37.1 million individuals who filed tax returns in 2015-16, 9.9 million show income below the exemption limit of Rs. 250,000 per year, 19.5 million show income between Rs. 250,000 to Rs. 500,000, 5.2 million show income between Rs. 500,000 to Rs. 1 million, and only 2.4 million people show income above Rs. 1 million.
Of the 7.6 million individual assesses who declare income above Rs. 500,000, 5.6 million are in the salaried class . These figures are absurdly low for a country of more than 1.25 billion and aren’t commensurate with the general economic activity seen in our society.
CHECK OUT THE NUMBER OF PRIVATELY OWNED LUXURY BUILDING AND PRIVATE OWNED LUXURY CARS
INCOME TAX DEPT HAS ALWAYS HARASSED SMALL FISH—BUT THEY IGNORED THE BIG FISH
The most common ways of tax evasion by NON SALARIED BIG FISH are to suppress the receipts or inflate the expenses, resulting in lower taxable income.
Abuse of various provisions of tax incentives/exemptions, including those for agricultural income, is also another widely used practice. –
ONLY FARMERS WHO PRODUCE FOOD MUST BE EXEMPTED FROM TAX. PEOPLE WHO PRODUCE INEDIBLE CASH CROPS MUST PAY TAX
DOES INDIA REALLY HAVE SO MANY FARMERS ?
TAX AUDITING DEPTS MUST HAVE A RISK ASSESSMENT FORM. THIS MUST BE PRINTED , SIGNED AND FILED-WITH CC TO SEVERAL MONITORING AGENCIES
Mere desk-auditing or scrutiny assessment by a BABU wont do.
This process of scrutiny assessments consumes most of the resources and energy of the Department, while contributing little to augmentation of collections. The process has become akin to the tax authorities chasing their own tail
THE INCOME TAX DEPT HAS FAILED TO HARNESS BIG FISH—DUE TO LACK OF KNOWLEDGE AND DETERMINATION
Large taxpayers (mostly corporate) using sophisticated and evolved methods of tax avoidance and evasion. These are in the form of complex arrangements of transactions through cobweb of various entities; shifting of profits to low-rate jurisdictions including tax heavens; abuse of tax incentive schemes; manipulations in the books of accounts, etc.
There are certain industries such as real estate, film, fashion, mining, construction, gems and jewellery, which are highly prone to manipulations and have deep-rooted legacies and practices of deviant behaviour.
It is important for the tax administration to develop specialisation and domain knowledge of various sectors of the economy to carry out effective audits .. The auditing of large taxpayers is also required to be conducted jointly by the direct and indirect tax authorities in order to achieve effective compliance at reasonable costs and manpower.
The internal processes of reporting, review, judicial filings, enforcement and departmental communication, which are still carried out on paper should be completely shifted to already available e-modes..
The existing process of auditing, hinged solely on scrutiny assessment, needs to be diversified and organically linked with the processes of risk profiling and data analytics. –
ASK ANY BIG SHOT IN THE IT DEPT TO GIVE AN EXTEMPORE SPEECH ON RISK ASSESSMENT—IT WILL BE AN EYE OPENER , AS TO HOW IGNORANT THEY ARE
Large numbers of hawala operators and accommodation entry providers, who are ready to offer low-cost services for manipulations of transactions, are also part of the ecosystem that has developed a high level of resistance to anti-evasion measures.
The tax evasion in these cases is often linked to other methods and areas, which serve as beds of parallel economy. Parallel economy, based on the black money or unaccounted money, is a big menace to the Indian economy.
It is also a cause of big loss in the tax-revenues for the government.. The annual rate of growth of black economy is higher than the annual growth rate of GDP.
Before demonetization , India had among the highest usage of cash across global economies. 98.2 % percent of all transactions by volume happened in cash. 70 % of the total value of transactions were conducted in cash.
More than 40% of the Indian economy goes unaccounted. A prevalence of cash often allows an “informal” or “shadow” economy—one that is not taxed, monitored by government, or included in the GDP—to grow or dominate.
RBI data suggested that the proportion of Rs 500 and 1000 notes was 86.4 percent of total value of notes in circulation on March 31, 2016, amounting to Rs 14 lakh crore. The growth rates in these notes was 76 percent and 109 percent respectively in the last 5 years versus the 40 percent increase in overall currency..
According to the Reserve Bank of India’s annual report published this year, more than 2.61 lakh counterfeit notes in the denomination of Rs 500 were detected by banks in the year 2015-2016 while another 1.43 lakh fake notes of Rs 1000 were detected. By value, counterfeit notes of Rs 500 and Rs 1000 accounted for more than 92% of all the fake currency detected by banks across the country.
THE HUMONGOUS INCOME TAX DEPT IS A PARASITE WITHIN THE INNARDS OF BHARATMATA AND MUST BE ABOLISHED ..
DOES ANYBODY KNOW HOW MUCH WE SPEND IN SALARIES, PENSIONS AND INFRASTRUCTURE OF IT DEPT ?
WE ASK “MY FRIED ARUN” TO BE TRANSPARENT
ABOLISH INCOME TAX-- WE NEED BTT.. OR THIS PROCESS OF DEMONITISATION GOES WASTE
CORRUPT BABUS RETIRE AND THEN DECLARE THEMSELVES AS FARMERS –TO AVOID TAX
CBDT must verify to verify the genuineness of agricultural income claims exceeding Rs 50 lakhs made by taxpayers in their income-tax (I-T) returns. Their farmlands do NOT grow anything.
A lot of RICH FARMERs have declared significant agricultural income just to LAUNDER MONEY
Giving credit to agricultural income for income tax purposes without verification of claim allows an avenue for bringing black money into the financial system as agricultural income. IT tax inspectors are bribed.
Taxpayers wishing to convert black money into white show proof of ancestral property in villages. They also obtain fictitious receipts from traders of agricultural commodities as evidence that they have produced and sold agricultural produce
Agriculture income disclosed for financial years ALWAYS exceed the total GDP of the country by several times.
EVER HEARD OF GST SCAM ?
Grace and peace !
sri-nrsimha, jaya nrsimha, jaya jaya nrsimha
prahladesa jaya padma-mukha-padma-bhrnga
All glories to Lord Narasimhadeva! All glories to Lord Narasimhadeva, who is the Lord of Prahlada Maharaja and, like the honeybee, is always engaged in beholding the lotuslike face of the goddess of fortune.
namas te narasimhaya, prahladahlada-dayine
hiranyakasipor vakshah, sila-tanka-nakhalaye
“I offer my respectful obeisances unto You, Lord Narasimhadeva. You are the giver of pleasure to Maharaja Prahlada, and Your nails cut the chest of Hiranyakashipu like a chisel cutting stone.”
ito nrsimhah parato nrsimho, yato yato yami tato nrsimhah
bahir nrsimho hrdaye nrsimho, nrsimham adim saranam prapadye
“Lord Narasimhadeva is here, and He is also there on the opposite side. Wherever I go, there I see Lord Narasimhadeva. He is outside and within my heart. Therefore I take shelter of Lord Narasimhadeva, the original Supreme Personality of Godhead.”
tava kara-kamala-vare nakham adbhuta-shrngam
keshava dhrta-narahari-rupa jaya jagadisa hare
“O my Lord, Your hands are very beautiful, like the lotus flower, but with Your long nails You have ripped apart the wasp Hiranyakashipu. Unto You, Lord of the universe, I offer my humble obeisance.”
THIS POST IS NOW CONTINUED TO PART 18, BELOW-
CAPT AJIT VADAKAYIL