Thank You , Narendrabhai !

Newspapers this morning report that, on Tuesday ( 29th Nov ) , government will introduce in Lok Sabha , an amendment to Income Tax Act

As per this ( expected ) amendment , Black Money holders would be able to deposit , OLD notes ( Rs 500 / 1000 ) into their OWN bank accounts, with following proviso :

#  Those willing to invest in GAREEB  KALYAN  YOJANA  Bonds :

    *  Deposit old notes { before 30th Dec } and inform IT DEPT, desire to avail of Bonds 

    *   Pay 30 % tax + 20 % penalty on this " Disclosed " but " Unaccounted " money

    *   25 % locked in for 4 years in Gareeb Kalyan Yojana Bonds ( at 0 % interest )

    *   Keep / Use balance 25 % for PERSONAL  USE

    *   Protection from further prosecution

#  Those failing to avail of GAREEB KALYAN YOJANA Bonds :

    *  Deposit at any time ( before or after 30th Dec ) but fail to inform IT department 

    *  Pay 30 % tax + 60 % penalty on this " Undisclosed " AND " Unaccounted " money

    *  Keep / use balance 10 % for PERSONAL  USE

    *  Face prosecution if unable to explain ( - and possible 4 year jail term )

Dear Shri Narendrabhai :

If true , what you have planned is an improvement over the type of " Amnesty " that I had suggested in my email of 15 Nov 2016 ( to you and your Cabinet colleagues ) viz ;

{  http://myblogepage.blogspot.in/2016/11/take-wind-out-of-their-sail.html  }

  *  Black Money Holder to deposit 100 % of his hidden / unaccounted money in specially

     created Bank Accounts of :

     Prime Minister Relief Fund / Armed Forces Relief Fund / Environment

     Rejuvenation Fund / Pollution Solution Fund / Ban MalNutrition Fund ...etc

*  No need to reveal identity / source of funds / Upper limit of deposit  

*  No prosecution but can keep / use  0 % for PERSONAL USE ( 100 % surrendered

   to Govt )

HOW  IS  THIS  AN  IMPROVEMENT  ?

Considering the following :

*  As of yesterday , some Rs 65000 crore have been deposited in Jan Dhan Accounts

*  At an ave of Rs 50,000 deposit per account , this may well represent 130 lakh accounts

*  That is , deposit in 10 lakh account EACH DAY , for past 13 days ! And no letting up !

*  But , in all , there are 25 Crore Jan Dhan accounts

*  If Rs 2.5 lakh were to get deposited in each, that would amount to Rs 62.5 lakh*cr

*  In a written reply in Lok Sabha last week , Minister of State for Finance , Santosh Kumar

   Gangwar said that , as of Oct 31 , 2016 , 238 prosecution complaints have been filed and

   and properties worth rs 18,866 cr have been attached

*  Based on the information submitted by Indian Authorities to the US as part of

   cooperation , the INSCR ( Integrated Network for Societal Conflict Research ) states ,

   " ... the government has not won any court cases involving money laundering or

    confiscations ... Money laundering investigations without a predicate offense are rarely

   successfully prosecuted in the Indian judicial system and even if they are , the resulting

   punishment is often minimal "

*  As pointed out in my earlier E Mail ( 23 Nov ) , trying to prosecute  few lakhs ( may be a

   few crores ) of Jan Dhan account holders is SIMPLY IMPOSSIBLE !

In light of the foregoing and that proposed amendment to Income Tax Act ,  it would be

reasonable to assume that , between 01 Dec and 31st Dec , we may expect :

   #  Rs 10 lakh*crore to get deposited in bank accounts and declared to IT department

   #  Of this , Rs 2.5 lakh*crore worth of Gareeb Kalyan Yojana bonds to get issued

       How can we use this money for the ultimate Gareeb Kalyan ? Here is my suggestion :

       Our 20 cr citizens below the poverty line ( BPL ) comprise 5 crore GAREEB families

       If this bond amount of Rs 2.5 lakh*crore was to be deposited into the Jan Dhan bank

       accounts of these 5 crore families , that would mean Rs 50,000 for each family !

       And that simple arithmetic would save 12 lakh children dying from malnutrition each

      year ! 

I cannot envisage a better use of BLACK MONEY !

   #  Political Parties handing over their own UNACCOUNTED monies to their loyal supporters

       to deposit into their own bank accounts and buy those BONDS !

       Retaining 50 % is any day better than losing 100 %  !

       Of course , when the Income Tax amendment gets introduced in Lok Sabha on Tuesday

       expect the Opposition Parties to label NDA government as the biggest HAWALA

       operator , who wants to compete with the road-side operators ( whose current going

       rate is 30 % ) and converts your Black Money into White Money by taking 50 % cut !

Dear Shri Narendrabhai :

With the proposed Income Tax amendment , you would have won the current battle

But , in order to win the WAR ON BLACK MONEY , I request you once again to ,

EMBRACE  THE INEVITABLE

{  http://myblogepage.blogspot.in/2016/11/embrace-inevitable.html  }

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26  Nov  2016

www.hemenparekh.in / blogs

  

  

    

Health Care through Mobile ?

DNA (  22  Nov  2016 ) carries a news report , titled :

" Online e-pharmacy portals to make patients' lives easier "

The details read :

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The formation of a strict monitoring system for online sale of medicines is underway by the Centre, that has come up with a Self-regulation Code of Conduct for the E pharmacy sector for the Federation of Indian Chambers of Commerce and Industry ( FICCI ).

The e-pharmacy model proposed by the apex business organization provides,

*   digital tracking and traceability of medicines,

*   addressing the problem of counterfeit medicines

*   unsupervised consumption of antibiotics without prescription.

*   improved access and affordability of medicines for patients.

The e-pharmacy model has proposed that medicines must be processed only against a valid copy of a prescription from a registered medical practitioner.

E-pharmacy websites must also ensure no schedule X or other sensitive habit-forming medicines are processed and that there are adequate checks in place to prevent sale of such drugs.

“We are working with private players to develop a centralized online system that involves manufacturers and supply chain managers to develop a fool-proof system for online sale of medicines,”  Drug Controller General of India, Dr G N Singh said.

“Consumers need quality medicines at an affordable price. Drugs and Cosmetics Act is the most poorly implemented — thus making consumers vulnerable to counterfeit medicines and self-medication,” said Bejon Mishra, Founder at Partnership for Safe Medicines (PSM) India.

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Congratulations , FICCI  !

I am happy that you have taken cognizance of my following suggestion , sent to you as an E Mail on 11 Oct  2015

I do hope , in course of time , you will succeed in co-opting all the AGENCIES listed in my suggestion , to ensure for our citizens , a world-class HEALTH CARE

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3 D - Digital Delivery of Drugs  ?

( let us call it , " Dispenser " )

On 14th Oct , 8 lakh pharmacy stores will go on strike to persuade Government to prohibit sale of " Prescription Drugs " by e-Pharmacies such as 1mg.com / Zigy.com , not to  speak of e-Com sites like Amazon / SnapDeal / Flipkart etc

Reason advanced :

*  Online sale puts consumers at risk

Real reason ?

*  Loss of jobs of 4 million persons employed by 800,000 pharmacy stores

*  Loss of business worth Rs 80,000 Crores

Current legal provision :

*  Drugs and Cosmetics Act,1940 does not prohibit online sale of medicines

Govt response :

*  Set up a Committee to draft new provisions in Law to regulate online sale

My take :

*  One day , everything will be sold online from web sites 10,000 Km away !

*  There is no way march of EVERYTHING ONLINE can be stopped or slowed

My Suggestions :

*  Govt to upload a Mobile App ( DISPENSER ? ) on Health Ministry web site

*  All doctors must download it , after proper registration / authentication

*  App will get embedded with full details of that doctor who uses it

*  Doctors to enter Patient Data in App  / then enter prescribed Drug Details

*  Doctor will SMS app data entered , to concerned patient's mobile

*  Patient will SMS entered app data to mobile of Chemist of his choice

*  Chemist will deliver the medicine to the patient with Bill Details in App

*  Chemist will deliver the medicine to the patient with Bill Details in App

*  Every action / transaction on App , will get automatically emailed to web

    Servers of

       #  Health Ministry

       #  All India Medical Association

       #   All India Organization of Chemists and Druggists ( AIOCD ) 

       #   Drug Controller General of India

Advantages :

*   Jobs / business of Chemists / Druggists saved

*   Great convenience for patients / no need to visit Drug Store

*   No chance of Chemist " misinterpreting " doctor's handwriting  !

*   Full History of

     #  Each Patient ( great benefit to Prescribing doctors )

     #  Each Drug    ( great benefit to Pharma Companies  )

     #  Each Chemist Shop  ( great benefit to Govt / AIOCD / Tax Dept )

     #  Each Doctor  ( great interest to All India Medical Association )

This is our chance , not only to deliver world-class healthcare to millions but also to get rid of a huge amount of UNETHICAL PRACTICES in , what is a HUMANITARIAN PROFESSION !

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25  Nov  2016

www.hemenparekh.in / blogs

Why Only 21,000 Crore ?

News reports this morning say that a sum of Rs 21,000 cr has been deposited in numerous Jan Dhan Accounts, since 13 Nov ( going up from Rs 45,636 cr to Rs 66,636 cr , in 10 days )

IT dept says , these were mostly accounts with ZERO or Re ONE bank balance on Nov 8, and now show a balance of Rs 40,000 to Rs 49,000

At an ave of Rs 50,000 ( half a lakh ) deposit per account , that means , Rs 1 cr ( 100 lakhs ) would suffice to fill up 200 accounts

So , Rs 21,000 cr must have filled up , 42 lakh accounts ( 21,000 * 200 )  !

If we were to assume that even half of these got filled with " BENAMI " black money, that would mean , Government would need to investigate and file court-cases against 21 lakh persons !

That exercise would involve

*   Local Police Depts , alerting

*   IT dept , which will alert

*   Financial Intelligence Unit ( FIU ) , which will , in turn , refer the cases to

*   National Investigation Agency ( NIA ) , or to

*   Central Bureau of Investigation ( CBI ) , or to

*   Enforcement Directorate

The court cases will drag on for 10 years !

And , at the end , even if half of those 21 lakh persons are pronounced " Guilty " and punished with imprisonment , do we have jail facilities for 10 LAKH prisoners ?

And what would be the cost of this exercise ?

Now remember that Jan Dhan scheme has nearly 25.4 cr a/c

If only half of these act as conduits for Black Money holders to convert their ill-gotten wealth into WHITE money , can you possibly sue  12.7  CRORE poor citizens under the BENAMI TRANSACTIONS ( PROHIBITION ) ACT - 2016 ?

Just impossible !

I do hope NDA Ministers / Secretaries / Advisors etc , realize the futility of trying to sue MILLIONS of poor citizens

On the other hand , all through this crisis of past 15 days , the NDA government has displayed a very NON-BUREAUCRATIC and DYNAMIC approach in solving the problem of cash crunch , through a series of 15 / 17 , " Relaxation Announcements "

It is  STILL  NOT  TOO  LATE  for Shri Narendra Modiji ,  to turn this misery and pain of the ordinary citizens into an OPPORTUNITY for their long term benefit

By implementing the following suggestion( call it " Relaxation " if that is saving the face ! ), that I sent to him on  09 Nov 2016 :

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MY   SUGGESTION  :

Please allow those Black Money Holders to deposit those Rs 10 lakh*crore  in bank accounts created specifically for :

*    Prime Ministers Relief Fund

*    Armed Forces Relief Fund

*    Environment Rejuvenation Fund

*    Pollution Solution Fund

and , above all ,

*    BANMALI  (  Ban Mal-Nutrition in India  )  Fund

{   http://myblogepage.blogspot.in/2016/09/a-mobile-app-named-banmali.html   }

Some 1.2 million children ( under age of 7 ) , die in India  EACH YEAR , due to mal-nutrition ( since , you do not wish to call it " Starvation " ! )

If each of these children were to be provided highly nourishing food packets each day , costing Rs 50 per day per child , that would cost the Government , Rs 2190 Crore / year

By enabling channelizing those Rs 10 lakh*crore into these Bank Accounts , we will be able to convert that Black Money into White Money ( but for use by the POOR / NEEDY of the Society )

Will those  Black Money Holders come forward for such a DONATION ?

They will , if the Government promises that while depositing the old notes into these accounts , 

*  NO  QUESTIONS will be asked , 

*  Depositor does not have to REVEAL IDENTITY  !

*  There will be no UPPER  LIMIT

They have nothing to lose in this World and everything to gain in the NEXT  !

Far better than donating crores to religious temples / shrines !

Let those Black Money holders " donate " their hearts to the 1.2 million dying children !

I request Shri Narendrabhai Modiji to go, sit silently in front of Raj-Ghat Memorial and ask :

"  Did you say : To the poor , God appears in the form of a  ROTI   in their hands  ? 

  By allowing the Black Money Holders to save these children , am I going to lose face ?  "

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24  Nov  2016

www.hemenparekh.in / blogs

A Solicited Opinion ?

Through his mobile app , Shri Narendra Modiji has asked the citizens to give their opinion on the recent demonetization

Here are those questions - and my answers :

-------------------------------------------------------------------------------

1. Do you think that black money exists in India?  .................................................................YES

2. Do you think the evil of corruption and black money needs to be fought and eliminated?..........YES

3. Overall, what do you think about the government’s moves to tackle black money?...................GOOD

4. What do you think of the Modi government’s efforts against corruption so far?........................ GOOD

5. What do you think of the Modi government’s move of banning old Rs. 500 & Rs. 1000 notes?....GOOD

6. Do you think demonetization will help in curbing black money, corruption & terrorism?.............NO

7. Demonetization will bring real estate, higher education, healthcare in common man’s reach...... MAY BE

8. Did you mind the inconvenience faced in our fight to curb corruption, black money, terrorism

    and counterfeiting of  currency ?........................................................................................ NO

9. Do you believe some anti-corruption activists are now actually fighting in support of black

    money, corruption & terrorism?......................................................................................... YES

10. Do you have any suggestions, ideas or insights you would like to share with PM Narendra Modi ?

    READ  BELOW

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Dear Narendrabhai :

There is no doubt , you will receive lakhs of " One Word " answers to your questions listed above , since a mobile app is not suited for detailed descriptions of suggestions on a subject like " Elimination of  Corruption and Black Money "

This is the reason , over the past one year , I have sent to you ( and to most of your Cabinet colleagues ) , some 50 unsolicited emails , listing concrete suggestions on this subject

Withdrawing of Rs 500 / 1000 currency notes , was only a small part of those suggestions

In itself , this step is unlikely to eliminate future generation of Black Money

But having taken this , there can be no question of any " Roll Back "

Given this " fait accompli ", and your " soliciting " suggestions from the public , please consider the following :

#  IN  SHORT  TERM

    In the forthcoming budget , revise Personal Income Tax rates as follows :

    *   Upto  Rs  10 lalkh.............. NIL  tax

    *   Rs 10 lakh to Rs 20 lakh..... 10 %  tax

    *   Above Rs 20 lakh............... 20 %  tax

#  IN  MEDIUM  TERM

 *  From 01 April 2017 , introduction of a new Rs 10,000  denomination currency note , duly embedded with RFID chip

*  From 01 Oct 2017, withdraw current ( newly introduced ) notes of Rs 500 / 2,000 , ie these will cease to be legal tender from that date

*  Do not introduce replacement of Rs 1,000 note , currently under planning

*  Let current ( new ) notes of Rs 500 / 2,000 , co-exist / overlap ( during April-Oct 2017 ) , with Rs 10,000 RFID embedded note

 Why  ?

*  We want to permanently eliminate BLACK MONEY and CORRUPTION

*  We want our economy to move from a 2 % non-cash transaction to a 96 % non-cash transaction

*  We want this transition to happen by Dec 2017

*  Such a rapid transition is not possible to be achieved by relying on increased usage of Electronic Transfers / Mobile Payment Wallets / Credit - Debit cards / RuPay / UPI etc

 How  will Rs 10,000 currency note achieve such transition in ONE year  ?

*  Embedding RFID chip in Rs 10,000 note , practically turns it into a Credit Card !

   Whereas it is not possible for any issuing agency to issue a BILLION plastic credit cards - one to each Jan Dhan Bank account holder -, there is no problem for government / RBI to print and issue , a BILLION notes of Rs 10,000 ( duly embedded with RFID chip ) 

#  Can a RFID embedded Rs 10,000 note succeed in capturing all the data which a Credit card transaction manages to capture ?

*  Sure , a RFID embedded note too will capture ALL the data such as :

   >  Details of " spender / giver " of that note

   >  Details of " Recipient " of that note

   >  Date / Time / Amount of that transaction

   >  Details of " Goods / Services " involved

   >  Details of taxes paid ( Sales Tax / VAT / GST etc )

   

How will such captured DATA get transferred to Servers of IT / ED / RBI  ?

*   Each " giver " and each " receiver " of Rs 10,000 note will need to install in his smart phone , a IT Dept issued Mobile App ( called , VERIFIER ) 

*   Mobile app will have provision to enter details of this CASH  transaction 

*  When that Rs 10,000 note is placed flat on the screen of the mobiles ( of both the parties      ) , the data will get transmitted through internet , including the note serial number

 Will embedding RFID serve any other purpose ?

*  That is the BEAUTY of RFID chip !

    It will communicate to IT / ED / RBI etc , of any accumulation of ( say ), ONE THOUSAND or more number of such notes , in an area of 1 Sq Meter , anywhere in India !

So , Black Money will have  NO PLACE TO HIDE  !

And , this continuous / constant tracking of each and every note of Rs 10,000 , can even help determine the MONEY VELOCITY / Currency Maps  !

Will this avoid the pain / difficulty / harassment being faced by ordinary citizens during the past 15 days  ?

*  Yes , of course  !

    Since there will be an overlap ( concurrent existence ) of high denomination notes for a 6 month period ( April - Oct 2017 ) , both types of notes will continue to be accepted as legal tender and there will be no disruption of day-to-day activities of buyers and sellers

This overlap will give enough time for RBI / Banks to fill up 4,000 " Currency Chests " located around the country , as also modify / fill up , 2 lakh ATMs

Will Government need to keep as a " closely guarded secret " , the introduction of RFID embedded notes of Rs 10,000  ?

*  No need ! Let the black money holders try whatever tricks they want !

    After 01 Oct 2017 , the only CASH they can hide , will be either Rs 100 notes ( just impossible ) or Rs 10,000 notes which " Announce their GPS location " and cry ,

"  Help , please Rescue me " !

{  http://myblogepage.blogspot.in/2016/08/help-please-rescue-me.html  }

#   IN   LONG   TERM

From  01  April  2019 , totally abolish Personal Income Tax

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Dear Shri Narendrabhai :

I believe , you gave 2 hours of your precious time to listen to the proposal of Shri Anil Bokil ( of ArthKranti - Pune )

How about giving me just 20 minutes ?

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23  Nov  2016

www.hemenparekh.in / blogs