Posts Tagged ‘Aadhaar’

Revisiting Old Favourites

In the summer of 1975, I was a typical middle-class college student: apolitical, though not unaware of political events, immersed in college activities and casting fleeting glances at the road ahead in life. The Emergency was a turning point for me and many others. After the initial shock, we witnessed the arrests of many activists, including prominent members of the current ruling elite, on the Delhi University campus, and got used to boring fare in the daily newspapers. Slowly, frustration started setting in — fear of speaking out because of rumours of police informers prowling around the campus, being incessantly subjected to glowing accounts of the achievements of the government, including the heir-apparent, and the reports, as 1976 wearily dragged on, of demolitions in Old Delhi and forced sterilisations, most markedly in the Hindi belt. The announcement of elections in January 1977 came as a relief, followed by joy when Congress party stalwarts deserted an obviously  sinking ship and euphoria on the morning of 20 March 1977 when Indira Gandhi’s party was given marching orders by the people of India.

I am not, though, soliloquising on those momentous days, but rather on three books that strongly attracted me during the Emergency and its aftermath: George Orwell’s 1984 and Animal Farm, and Arthur Koestler’s Darkness At Noon. The Emergency era, with its midnight arrests, glorification of the leader and breathless media  accounts of remarkable economic achievements, was drawn straight from the scripts of  these three classics. Post-1980, although India went through its multiple convulsions, these books, while occupying pride of place on my bookshelf, gathered dust as the Fukuyama liberal democracy era seemed to indicate that we were moving to more hopeful times.

Not any more, though. 1984 has been replicated in the scenario of recent years. Big Brother, in the shape of the Great Leader, beams at us from giant-size hoardings, full-page newspaper advertisements and from television screens, in country after country. Media reports are full of government’s achievements in the financial, economic, social and foreign policy spheres. The television screens scream shrilly at us when exposing dastardly “anti-national” conspiracies, with news anchors frothing at the mouth and their coiffured hair popping up a la Kishore Kumar in the Hindi film Padosan. And with the daily cacophony of alleged attacks by disaffected elements, including migrants, minorities and liberals, that day is not far when we will be treated to public displays of captured enemy soldiers.

Darkness At Noon has its echoes in the recent midnight drama at the Central Bureau of Investigation (CBI) headquarters in New Delhi. That the government saw fit to undertake a coup against a senior police functionary under cover of darkness is alarming; that it posted ham-handed, heavy-footed sleuths to snoop on him the next day betrays a paranoia that would have done Stalin proud. The pattern is the same elsewhere in the world: a senior Interpol representative vanishes in China, a journalist is strangled and dismembered in the Saudi Arabian embassy in Istanbul and journalists and liberal thinkers are summarily despatched in countries like Russia and India. Concentration camps and Gulags may have become passé but detention camps have come to stay in the world’s largest democracies, India and the USA, all set to house “migrants” from neighbouring countries.

Animal Farm is, of course, a perennial favourite in describing politics of any hue. Every politician promising change morphs into the image of his/her predecessor: the “oppressed” imitate their oppressors in every single case. Even more telling is the popularity of fake news, reminiscent of “Four legs good, two legs bad” metamorphosing into “Four legs good, two legs better”. History is rewritten so that the dumb animals can no longer remember their initial revolt against the tyrannical Farmer Jones.

Where then does it look as though humanity is collectively headed to? Hopefully not the terrifying society envisioned in Margaret Atwood’s The Handmaid’s Tale, in which the United States of America becomes an authoritarian theocracy, with the regulation of thought and speech at every step and selected women serving as reproductive vessels for a fast-vanishing elite. For me, the mind-numbing moment in the novel came when the central character, June, is suddenly informed at a shopping counter that she can no longer draw money from her bank accounts. Flashback to 8 PM on 8 November 2016 when over one billion citizens were summarily informed that in four hours’ time, currency of particular large denominations held by them would become worthless and they would have to approach their bank branches as beggars to release even limited amounts of their own money. Even though the Supreme Court has not accepted the mandatory linking of bank accounts to Aadhaar numbers, the fact remains that 99 percent of Indians have been compelled to link their bank accounts with their Aadhaar numbers. I shudder at the thought of a future dictator arbitrarily and unilaterally deciding at the stroke of the midnight hour to freeze all bank accounts and gain complete control over the finances, and other actions, of his/her country’s inhabitants. Should that ever occur, our venerated poet-philosopher Rabindranath Tagore’s famous line in Gitanjali will have to be modified to “Into that hell of unfreedom, my Father, let my country  not awake.”

 

Rushing In Where Angels Fear To Tread

News reports stated that an eleven years old girl from Simdega district in Jharkhand died apparently because her family could not get their food grain entitlement as their ration card was not Aadhaar-linked. I say “apparently” because, in this post-truth age, one never knows how to separate fact and fiction in media reports. There will also be the usual controversy over whether health or nutrition factors were primarily responsible for her mortality, with all commentators blissfully unaware of the close linkages between the two. But, knowing how things work in India that is Bharat, I am certain that the failure to link their Aadhaar numbers to their ration cards must have cost many families access to subsidised food grains. This view is bolstered by reports that seem to confirm that the ration card of the family in question was not linked to the Aadhaar card.

I am not going into the merits of Aadhaar linkage to beneficiary schemes, on which enough heat and sound has been generated without any light. But I am concerned about the haste in rushing in to implement policy measures without adequate backup systems. This has a lot to do with the current obsession in governments to show results immediately. In the Jharkhand case, time could have been taken to ensure that most of the population had obtained Aadhaar cards and efforts could have been made over some months to ensure Aadhaar linkage with ration cards. But the childish enthusiasm of the political and administrative executive of Jharkhand to score brownie points with the higher-ups in Delhi probably led to their claiming that they had managed almost full linkage of ration cards with Aadhaar numbers.

The same issue bedevils MGNREGA payments in Jharkhand as well, with documented evidence that the system of online bank account transfers has resulted in inordinate delays in wage payments. If you think such poorly planned policies have troubled only the really poor, think again. Major financial decisions taken over the past year have played havoc with large segments of society, not because of lack of intrinsic merit, but because of the desire to impress the public that this is a “government that works”.

Demonetisation was intended to be the sledgehammer that would eliminate black money, check counterfeit currency and improve tax compliance through reliance on digital transactions. A year down the road, even after all the travails borne by the long-suffering public, it is evident that the black money scourge refuses to die, the introduction of more and more currency notes in different denominations will be a boon to counterfeiters and that tax compliance will become a reality only when simplified tax structures are in place and when sound legal systems exist to penalise defaulters quickly and effectively. Which begs the question of whether demonetisation could not have been handled in a more graduated fashion, with new currency notes going into circulation before the withdrawal of old currency notes.

The same thought haunts one when observing the hasty digitisation of the GST. Considering that it took thirteen years for this baby to be born, the infancy phase could have been handled better. The “tryst with destiny” has certainly altered the destiny of small retailers and merchants, many of whom find the process of filing returns excessively cumbersome. In its fourth month of implementation, technical glitches still thwart the filing of returns: GSTR1 filing for July has just been completed, with filings for subsequent months pushed to November. Despite the promises of the Union Finance Minister to process refunds expeditiously, CAs are of the view that refunds could take six months or more, affecting cash flows of businesses. Gradual phasing in of GST online systems with continuation of the service tax regime for some more months would probably have ensured less transitional pain.

Ramming Aadhaar compliance down the throats of income tax payers and bank account holders will, I suspect, unleash another Pandora’s Box in the months to come. Again, I am not questioning the rationale but the speed of expected compliance, consequences be damned. Filing income tax returns for FY 2016-17 required all those not having Aadhaar cards as of April 2017 to get them by July 2017. Pensioners and the elderly were particularly inconvenienced. Linking Aadhaar numbers to bank accounts has its own technical problems. Most banks have no robust online mechanism to enable the account holder to verify that her bank account is indeed Aadhaar-linked. Come February 2018, citizens may well be faced with the nightmare (actually, it should be called daymare) of their accounts being frozen, leading them to beg on the streets. The insistence on linking mobile numbers to Aadhaar numbers, apparently mandated by the Supreme Court, is yet another nuisance around the corner.

Make haste slowly” is a salutary motto for good governance. This tendency of the civil service is viewed unfavourably by professional politicians, obsessed with the five-year election itch: why, even an ex-bureaucrat like Arvind Kejriwal has commented unfavourably on IAS officers sitting on files. Many of us were roasted by Ministers and Chief Ministers when we insisted on listing on file the pros and cons of any decision, probably a reason for at least some of us being overlooked for prize postings. Pointing out all the possible implications of a decision ensures at least that, if Plan A goes wrong, Plans B and C can be put into operation. It is the current fashion to run down the 1991 economic reforms as being rather halting and piecemeal. As one who was in Delhi at that stage, I am happy that even those reforms that did take place at that time went through, given the attachment of establishment politicians to “crony socialism” and the hostility of an established elite to the whittling down of its gravy train.

The rush to push through major decisions has, no doubt, been influenced by the relatively narrow window before the 2019 general elections. If the favourable results take time to mature, the government may well have to reap the whirlwind of short-term resentment. In the present climate of harking back to our glorious past, I take the liberty of recounting the story of Bhasmasura. Blessed by Siva with the boon of turning whatever he touched to ashes, Bhasmasura sought to test the boon on his benefactor. It took the wiles of the damsel Mohini to persuade Bhasmasura (in the hope of acquiring her) to place his hand on his own head and be turned to ashes. Governments would do well to heed this parable. Chasing the electorate (Siva) to test its powers, the government (Bhasmasura) is finally enticed by Mohini (the election process) to destroy its continuance in power through unwise, ill thought out steps. Yet again I resort, ad nauseam ad infinitum, to my favourite quote:

Those who do not remember the past are condemned to repeat it.

This article was originally published on Indus Dictum, a site where thought leaders from diverse fields, spanning business and technology to politics and modern law, contribute unique insights and experiences. You can access the article here.

No discussion, no debate, no consensus

The government came up with forty amendments to central statutes as part of the Finance Bill, 2017. Nothing unusual, you might say, except that some of these amendments affected certain basic rights of the individual. By presenting these amendments in a Money Bill, the government managed to push them through without much debate in the Lok Sabha, where it enjoys a comfortable majority, and bypass the Rajya Sabha (where it is in a minority) altogether. This stratagem is becoming popular with the present government. They used it in 2016 to push through the Aadhaar Bill with a number of provisions that sought to virtually make obtaining an Aadhaar number mandatory for the citizen. This, despite litigation pending in the Supreme Court on what could be the scope of Aadhaar and the Supreme Court’s repeated directions to the government that it (the Supreme Court) would be the final arbiter on what the Aadhaar scheme could cover. Now, in one stroke, the government has gone beyond the provisions of even its own Aadhaar legislation to compel the honest taxpayer to register for Aadhaar. Come July 1, 2017 and the Kafkaesque situation could well arise where, after paying her income tax for the financial year 2016-17, the taxpayer finds that her income tax PAN has been invalidated and she cannot file her tax return, rendering her liable for financial penalties and incarceration.

The Finance Bill 2017 has also incorporated other amendments which merited taking the considered advice of the House of Elders, the Rajya Sabha. Certain tribunals have been abolished, their functions being taken over by other tribunals, without any clear rationale being spelt out. Not only that, the central government has armed itself with extensive rule-making powers to determine inter alia the qualifications, manner of appointment and removal of tribunal members and their emoluments. Given that the government is itself a litigant in a number of cases coming up before these tribunals, public confidence in the impartiality of these tribunals is likely to be severely shaken. Existing financial limits on contributions by companies to political parties have been removed and there is no need to disclose the party to which contributions are being made. Draconian powers of search and seizure have been given to officials of the income tax department: welcome back, inspector raj!

If these facets of unilateral exercise of executive power, unchecked by legislative oversight, were confined to just the Finance Bill, one could have ascribed it to overzealousness of the Finance Minister and his mandarins. Alas, the unbridled exercise of power has contaminated many other areas of government and society. Don’t like books that run contrary to your worldview? Just drag the publishers to court and let them stew in their own juice till they capitulate (Dina Nath Batra vs. Penguin/Wendy Doniger). Take offence at comments about a historical figure in a book? No problems, go ransack the venerable institution that worked with the author and destroy priceless, age-old artefacts and manuscripts, as goons of a ruling political party in Maharashtra did in 2004 (Bhandarkar Oriental Research Institute, Pune). The availability of alternative methods of civilised expression is apparently foreign to most citizens of the world’s largest democracy.

Mahatma Gandhi observed in 1947 “In India, no law can be made to ban cow-slaughter…It will mean coercion against those Indians who are not Hindus.” Like many of Gandhi’s sage views, this one too has been consigned to the dustbin, with states vying with one another to ban the sale of beef. In 2017, one state, Gujarat, has legislated to punish cow-slaughter with imprisonment for life. Not to be outdone, the Chief Minister (CM) of Chhattisgarh has declared his intention to hang those guilty of cow-slaughter. A non-binding Directive Principle of state policy has been converted into laws that infringe the right to liberty of the citizen (and even the right to life, if the honourable Chhattisgarh CM were to have his way). Meanwhile, summary justice (or, rather, injustice) is meted out by vigilante groups to those suspected of involvement in alleged cow-slaughter.

The newly-installed theocrat CM of Uttar Pradesh has trained his sights on Romeos through his anti-Romeo squads (William Shakespeare is turning in his grave, four hundred years after his death, at the ignominy being heaped on one of his most romantic characters). I shudder at the unlimited latitude given to the police force of Uttar Pradesh, not known, even at the best of times, to exercise moderation in its interpretation and implementation of the law. Dating in UP will soon be a dated concept, with no Juliet worth her salt daring to be seen publicly with, you guessed it, a Romeo.

Actually, Juliets in India are having a tough time even completing their education. School and college managements from Varanasi to Vellore have decided that information will enter the craniums of their female students only if they are suitably attired (suitability being decided by the management). Not only that, women students must keep their distance from male students (apparently to keep hormonal outbursts at bay), eschew library work after 6 PM and forego the privileges of wifi (to keep corrupting internet influences away).

And then, to top it all, we have that abomination called the Central Board of Film Certification (CBFC). It was bad enough when the CBFC puritans arbitrarily decided what was viewable only by adults. But now we have situations where certification is refused altogether for “lady-oriented” films. The latest news is that a film dealing with the demonetization episode is being referred by the CBFC Kolkata office to Delhi, so apparently terrified is the local officer of taking a decision on merits.

So, seventy years after India’s tryst with destiny, the Aadhaar-enabled, celibate, vegetarian, male Indian enters a Brave New World where he apes Gandhi’s three monkeys – “See no evil, hear no evil, speak no evil.” One does not necessarily dispute every decision taken by the government of the day. It is only that in a country with multiple sub-nationalities, religions, languages and traditions, a culture of debate and discussion ensures wide acceptability of laws and regulations, so essential for a functioning democracy. Jawaharlal Nehru, that inbred democrat, whose name is anathema to many of those in power today, wrote fortnightly letters to Chief Ministers uninterruptedly for over sixteen years from late 1947 to the end of 1963. Despite enjoying an unrivalled political status, Nehru was keen to justify his policies and explain their rationale and the motivations underlying them. Even in today’s rather vitiated political atmosphere, it would be statesmanlike for leaders to explain their actions to others, especially those opposed to their policies, and seek a broad consensus on the way forward. We would hardly want a scenario where people, on whom decisions have been thrust, echo the words of the disillusioned poet, penned by the inimitable Sahir Ludhianvi, in the film Pyaasa:

तुम्हारी है तुम ही संभालो यह दुनिया

यह दुनिया अगर मिल भी जाए तो क्या है

 

 

 

Money…the root of all evil

“For the love of money is the root of all evil”
(Timothy 6:10, The Bible, King James Version)

The Bible makes it clear that it is not the medium which is evil but the inordinate attraction to it. Before we castigate that poor banknote or coin, let us also reflect that greed is only one of the human failings, on par with envy, fear, lust and anger. And yet, the action of the government of the day to render worthless ₹ 500 and ₹ 1000 denomination notes at the drop of a Prime Minister’s speech has left the common citizen speechless and in the grip of a welter of emotions. The intentions may be good and the purpose may be noble : there is a groundswell of support today for the government’s actions among the chattering classes, even though the silent masses are going through difficult times. But is “black money” so easily tamed? Since there seems to be popular misconceptions about “black money”, its origins and nature, some clarifications are in order.
Black money can refer to a flow or to a stock. It is the activity through which the money is generated which determines whether it is black or white, while the subsequent use of the money determines its colour at that time. For example, a private engineering college accepts a donation in cash from a student and declares only 25% of the amount as received. The remaining 75%, which is held in cash, or converted to other assets (and not declared as income), constitutes black money. If this money is used to pay cash salaries to the college employees, the money gets converted from black to white, since the employees use it for their legitimate monthly expenses. Similarly, undisclosed “black money” income parked abroad (as stock) is converted to a “white money” flow when it legally reenters India as foreign institutional investment from foreign tax havens. The roots of black money can lie where activities are wholly illegal (smuggling, drug dealing, arms transactions), or where the activity is legal, but part or whole of the amount realised is not disclosed, either because there has been some violation of permissible limits (illegal mining, capitation fees) or simply to avoid tax payments of any kind. The mythical metaphor could be Ravana’s ten heads in the Ramayana or the Lernaean Hydra in Greek mythology: chopping off one head would see more heads grow back again. A modern day analogy would be the Jackal, the terrorist tasked with the assassination of President Charles De Gaulle of France. With his multiple stolen passports and the ability to change his appearance to suit the passport photograph, the Jackal evaded stringent police surveillance and was finally stopped in his tracks by a patient, persevering French policeman only after he had managed to take a crack at his target. Black money is similar: just when the enforcement agencies think they have got the beast, it will reappear in a new form elsewhere.

In these days of highly fungible economies, the very processes of economic and government functioning give immense scope for the generation of black money. Since I started this article with a quote from the Bible, it would be appropriate to list the Ten Commandments that the Government of India must follow if the current demonetization drive is to come anywhere near yielding the desired results:
I. Thou shalt make bank accounts mandatory and easily accessible
The innovative idea of the Pradhan Mantri Jan Dhan Yojana (PMJDY) to provide every Indian citizen with a bank account has seen as many as 254 million accounts being opened till November 2016. By the government’s own figures (gathered from banks), nearly 25% of these accounts have zero balance; there is an average of about ₹ 2500 in the remaining accounts. The geographical spread of these accounts would be highly skewed: remote tribal and rural areas are likely to be underserved. It is the poor with no access to bank accounts who have been hardest hit by the demonetization exercise. The significant percentage of zero balance bank accounts is testimony to the fact that bank accounts are still not perceived as useful by the poor, especially where they have little bankable surplus and where bank locations and timings are such that they cannot easily be accessed. Making the opening of a bank account by every citizen above the age of 18 mandatory would popularise the use of banking services and compel hitherto reluctant bankers to actively seek customers. There will still be areas where access to bank branches is difficult, either because of geographical location or, more often, because of timings which do not suit the customer. It is here that the Second Commandment comes into play.
II. Thou shalt actively promote the cashless economy through the use of technology
Mobile wallets and payments through mobile phones and computers using internet and wireless technology can obviate the need to visit banks. Use of point of sale (POS) terminals at all transaction outlets would promote cashless transactions. Money transfers (salaries, etc.) can be done online or using mobile phones. Banking correspondents can ensure needed cash payments from and deposits to customers’ bank accounts. This will need some knowledge of how to use these systems. Having seen how quickly nearly 900 million Indians have mastered the use of mobile phone software, including the use of WhatsApp and the downloading of videos, I do not foresee any problems of adapting to modern technology. There is, of course, still the need to ensure that the temptation to escape the electronic trail is checked…enter the Third Commandment.
III. Thou shalt declare illegal and void any cash transaction exceeding ₹ 10000
Given the Indian propensity for jugaad, all efforts will still be made to evade scrutiny of economic intelligence agencies by going in for over and under the counter cash payments, to avoid payment of direct and indirect taxes. Black money will be converted into holdings in real estate and gold/jewelry. To ensure a clear electronic trail of all transactions, any cash transaction over ₹ 10000 should be made illegal and liable for punitive action, including confiscation. This will also, hopefully, check the widespread and pernicious practice in India of large-scale cash transfers in real estate dealings to evade payment of capital gains tax, stamp duty, registration fees and other related levies.
IV. Thou shalt demonetize ₹ 2000 and ₹ 500 notes
The rationale for introducing ₹ 2000 notes when the lesser denomination of ₹ 1000 has been scrapped has raised many eyebrows: suitcase payments become easier when the number of currency notes required to be packed into the suitcase are reduced by 50%. A strong case can be made for scrapping all currency notes of a denomination greater than ₹ 100. In fact, there is growing support from American economists for withdrawing from circulation the 100 dollar bill which, they feel, helps only drug dealers, terrorists and illicit activities while rarely being used for transactions. India may not be quite in the same cashless economy boat as the USA, but moving the economy in the cashless direction requires demonetization of ₹ 500 and ₹ 2000 currency notes. The presence of currency in only small denominations from ₹ 1 to ₹ 100 would force reluctant merchants to go in for cashless technology. It would also render more difficult the task of using low denomination currency notes in large numbers for high value transactions.
V. Thou shalt make Aadhaar and PAN card details mandatory for all transactions above ₹ 10000
Despite the objections of neo-Luddites opposed to the universal deployment of the Aadhaar card for all, it is heartening that, for schemes like the LPG subsidy transfer, Aadhaar cards are being linked to bank accounts. Since opening a bank account does not require either Aadhaar card registration or PAN card details, there is every scope for diversion of unaccounted for income to benami accounts. What is urgently required is to link Aadhaar and PAN card details and to make PAN details mandatory for any transaction exceeding ₹ 10000. This would check possible misuse of bank accounts which are not on the income tax radar (due to non-availability of PAN details) and would also ensure that non-income taxpayers (like agriculturists) are not used as conduits for undisclosed payments.
VI. Thou shalt discontinue top-level political decisions in all discretionary matters
A major scope for corruption lies in the centralization of decision making powers at the political apex, especially in state governments and local bodies. Whether it is the posting of officers, the permission to start primary schools or the award of contracts for anything from chalk pieces to supplementary nutrition for children to major constructions, the ministerial seal of approval is a must. This has spawned a major corruption industry which enmeshes a significant portion of the bureaucracy as well. We are also often regaled with stories of the MLA or local body corporator who becomes a multimillionaire within a year or two of getting elected. The standard defence is that elections are a costly business, although how that justifies corruption is beyond one’s comprehension. Be that as it may, there is no denying that, apart from lowering administrative efficiency and providing substandard services to the aam aurat/aadmi, high-level political corruption is a significant source of black money, often ploughed back into real estate and conspicuous consumption. Since this is a disease that cuts across political boundaries and is particularly common at state and local government levels, the Government of India must, through a combination of incentives and shaming, compel governments to restructure their governance processes and decentralize decision making powers.
VII. Thou shalt implement a sound public procurement policy
The Government of India had introduced a Public Procurement Bill in 2012 to regulate and ensure transparency in procurement by the central government and its entities. The bill was allowed to lapse and there have been no efforts subsequently to resuscitate it. Most state governments have no public procurement policy or legislation in place. Even in the few states where such legislation has been passed, its effectiveness has never been assessed. Since, apart from administrative postings and patronage in resource allocation, public procurement is the greatest source of political and bureaucratic corruption, some urgent action on this front is essential to check amassing of illegal wealth by the politician-bureaucrat-businessman trinity.
VIII. Thou shalt eliminate the inspector raj through online processes
The permit-license raj was curtailed in 1991; unfortunately, the then government lost steam before the death blow could be delivered to the inspector raj. There are still too many ‘inspectors’ in local bodies, police, road transport, liquor licensing, education, industry and labour welfare, whose major function appears to be the collection of economic rent, for themselves and those above them in the government hierarchy. Some streamlining of licensing processes has taken place but the overall picture is still one where the inspector-tout system flourishes: just visit any Regional Transport Office and see for yourself. This corruption has two “black money” aspects: firstly, the unlawful gains to the organs of the state and, secondly and more dangerously, the operation of a parallel economy that can threaten national security and financial stability. Technology is, again, the only answer. As more processes go online, self-certification by licensees and only minimal, essential contact with the human element can help reduce corruption and harassment.
IX. Thou shalt streamline the justice system to deliver just deserts promptly to all bribe-takers, bribe-givers, tax evaders and hawala traders
As an American jurist put it “The millstones of justice turn exceedingly slow, but grind exceedingly fine”. Justice in India often seems inordinately long in coming. It is rather ironic that, in recent times, a public prosecutor of Indian origin investigated and secured the conviction of two well-known individuals of Indian origin on charges of insider trading in a matter of four years in the USA. While we may not all support his approach, it is a fact that high profile cases involving top political and bureaucratic functionaries in the previous central government are still far from closure even in the trial court. Lengthy, tortuous legal processes not only breed cynicism in the populace at large (not a healthy sign for a democracy) but also embolden lawbreakers with political and economic clout. Sincere and speedy implementation of the provisions of the Benami Transactions (Prohibition) Act, Prevention of Money Laundering Act, Prevention of Corruption Act and related legislation will show that the government means business. Along with the government, the judiciary also needs to tighten its processes and dispense justice fairly and speedily.
X. Thou shalt ensure that all elections are funded only through legal contributions and that all transactions relating to elections are closely monitored
The final Commandment covers a subject which is at the foundation of the efforts to tackle the genesis of black money: electoral corruption. Election funding is itself a small portion of the black money generated. But the politician-businessman nexus that unaccounted election funding sustains has deleterious long-term implications for the economy as well as for the credibility of democracy in the eyes of the people. There are politicians who proudly claim that they have never enriched themselves personally but have taken money only for their political party. Political parties have never been required to account for the sources of their funds and have stubbornly resisted efforts to bring them within the ambit of the Right To Information Act. Demonetization should bring about a situation where all receipts and all expenditures, small or big, by parties and their candidates can be electronically tracked. This will give the Election Expenditure Observers far more teeth than they have at present. With rigorous monitoring of electoral expenses, the last fig leaf for justifying corruption before, during and after elections will be gone.

I write this piece at a time when the nation is probably going through one of its greatest phases of turmoil since independence, rivalled only by the churning of the polity in the closing months of the Emergency in 1977. As one who lived for over a decade in the vicinity of Muhammad Bin Tughlaq’s aborted capital of Daulatabad, his other aborted experiment with currency comes to my mind. Of course, 2016 is not 1333 and we are not minting brass and copper coins, though the flimsy quality of the Rs. 2000 currency note makes me slightly apprehensive. There will always be insinuations that raw political calculations dictated the demonetization decision. The current pains that large sections of the population are going through could have been mitigated somewhat if some of the Ten Commandments had been implemented prior to the “surgical strike” on the currency. As matters now stand, systemic changes on the lines suggested above would give the government some victories on the black money front in the months and years to come. Human greed will remain, the craze for conspicuous consumption and the Big Fat Indian Wedding will continue unabated and the Cayman Islands and other tax havens will always beckon those with an insatiable appetite for moolah. But the government would at least have the satisfaction that it made earning a fast buck that much tougher for those who are never going to respect the rule of law, while also ensuring that it does not make the wretched life of the common (wo)man even more wretched.