Economy – Re-Monetization and a New Monetary System The Rull Out of Re-Monetization – Sequence .

Post the announcement of Re-monetization, the first and foremost task of the new government would be to constitute a Core New Deal Group comprising citizens from all and appropriate walks of life with varying backgrounds and recognized as upright, ethical citizens and having experience across legal, administrative, governmental, commercial, education, police, armed forces, farmers, foreign policy professionals or academics, geopolitical analysts and specialists, scientific, medical, researchers etc. from a cross section of fields. In addition, appropriate field specific sub-groups would be formed to frame the organism that would become the Core National Change Management Organism.

These groups would be tasked to review and propose amendments or changes to the Laws and Rule Books that The Rising India Party has proposed and framed to Govern India along the lines set our below:

  1. On winning elections, within four months, The Rising India Party would announce and constitute core Plans Board Groups, Implementation Board Groups and Audit Board Groups across key Ministries and Constitutional bodies comprising the best available brains, talent and experience. These Groups will tap talent from all sectors of the country including bureaucracy, private citizens, NGO’s, the corporate and social sector.
  2. The government would constitute Investigation and Audit Groups that would act as lead points for the audits of past behavior of bureaucrats, politicians and businesses with the mandate to identify quantum of wealth generated through corruption money, and tax evasion.
  3. The government would also form Implementing Groups who would, in tandem with the Audit Boards, be the implementation arms of government Policies. The Implementation Groups will comprise a cross-section of people with requisite experience and talent and would include public citizens, experienced individuals with representation across the socio-economic spectrum with “experts” or experienced thinkers from various sectors of society as deemed appropriate.
  4. These Plans, Implementation and Audit Groups would function with Parliamentary Authority and ambit and would report to and be responsible to the elected members of Parliament but would have functional Autonomy with requisite authority parameters that would be identified and incorporated in the operational frame.
  5. These Plans Board Groups, Implementation Board Groups and Audit Board Groups would be the driving force of the new Policy initiatives. The Government will announce its policy to take aggressive measures to bring into the open, to legitimize the “black” or “no 2” economy, into the functional “white” mainstream economy as Step 1 to reframe the entire socio-economic-political-geopolitical frame as set out below:
  6. The government will pronounce that all money generated through corruption through misuse of position, or power or through Tax avoidance as well as funds “stolen” from the national and / or state exchequers over the past 50 years through various means including contract distribution, favors duly paid for in cash or kind by politicians, bureaucrats and government servants; is declared as Stolen National Wealth, and the nation has launched the recovery process of such wealth, held in India or overseas, through full research, audit and investigations to recover these monies with the full force of the law.
  7. However, the Government would give a fair chance under a general Unconditional, no-questions-asked, Amnesty to all Indians, whether domiciled in India or overseas, including those who have taken up overseas citizenship since 1969 (fifty years), who have been recipients of “corruption or tax evasion money” through “hawala” or other means of wealth transfer including over and under-invoicing, from their bureaucrat or politician or private sector businessmen relatives, who would be given an opportunity to come clean through Full Disclosure by the date set, which would be 18 months from declaration of a general and un-conditional amnesty.
  8. The government will give a chance to all former or current politicians, bureaucrats and government servants, their extended families and networks, as well as to private sector individuals and / or companies to take the opportunity of coming clean if they wish to retain their ill-gotten wealth under new rules / laws set out.
  9. Attached to the amnesty would be incentives and privileges that would include opportunities to participate in projects of nation-building and including the granting of citizenship to those who have taken up foreign nationality within the frame of allowing dual-citizenship, concessions for setting up business operations in India, and possible invitations to participate in national Policy Groups, to those who have built outstanding enterprises or are accomplished in their professions.
  10. Conversely, those who do not take up the offer and continue to hide the illegitimate wealth will be subject to threat of severe penalties including a move towards the confiscation of assets, including those held overseas, through aggressive government-to-government action and where required, through their court systems, or through international courts.
  11. Such non-declarers would be denied any ownership of assets in India; it would result in refusals of visas to visit India for them and their families. Other measures would include blacklisting of their companies, and of the individual owners from conducting any business activity in India or that is India related and others measures so defined.
  12. The government would set up working Audit Groups comprising financial sleuths, available within the private sector who would be tasked with tracing and identifying the wealth holdings, in India or overseas, of all politicians and bureaucrats who were in active service from 1969, i.e. the past 50 years, and of their families including brothers, sisters, uncles, aunts and first cousins from both mother’s and father’s side.
  13. Intelligence teams would be formed for this purpose comprising appropriate financial and intelligence experts recruited from the private sector and will include clean officers of the Indian Government. These teams would have wide ranging powers but would be formed for limited time contract basis of say five-year blocks so that their costs do not become a permanent feature on the exchequer.
  14. The methodology employed would be to dig into the records and arrive at the wealth picture of the politicians and bureaucrats and their families at the time the individual became a government servant or entered Parliament or the state Vidhan Sabha, by looking at the father’s and family’s occupation and financial status. The families of these would be identified and their status examined through investigations that would include speaking to their neighbors, their tax returns where filed, fixed assets and other related tools. The facts garnered would become the operative parameters on which government decisions would be based.
  15. The Audit and investigation groups would largely be made up with the involvement of the private citizens and people drawn from the private sector within a compensation frame that would be based on a reasonable, but on the lower side, base amount, and a very healthy incentive for bringing facts and proof of hidden or stolen wealth that is subsequently recovered.
  16. The government would offer a 25% incentive to any member of the public who can establish provable connection, as neighbors or friends or relatives who provide information to The Rising India Party government leading to the identifying the illegitimate or stolen wealth of the concerned person(s) that is subsequently recovered.
  17. The investigation methodology would include personal conversations with the concerned individuals or their family members assisted by psychometric profiling and Polygraph assisted interviews to quickly ascertain the truth of wealth holdings of the concerned people.
  18. Those individuals who take up the amnesty and go for full voluntary disclosure, will not be investigated further except as a random check method to ascertain the honesty quotient of the declarers.  
  19. All politicians, bureaucrats in politics or service as of 1969, the benchmark year; and Indians who left India as of 1969, or individuals of Indian extraction who currently have substantial businesses and / or wealth in India or overseas, will be subject to scrutiny, if they have not come clean and declared their assets and wealth, before and after entering service.
  20. This would be to evaluate whether their businesses and assets / wealth were legitimately earned or were started up or assisted through money transfers through hawala or other illegal means, whereby all would be subject to scrutiny and investigation, unless they come under the ambit of voluntary full disclosure under the amnesty policy.
  21. Non-Declarers who are subsequently investigated and audited, will have to provide full details of the sources of their original wealth and of the financial position of their families, before service or winning elections and office, of their financial position before such service or elected office and after the fact, for the government to assess illicit money they may have acquired but not declared under the amnesty.
  22. If not declared by the original person who took the money, giving direct details of what they took, how they took, where they parked the money; for what they used it such as property, business, jewelry, overseas property, business routed through relatives, hawala, and to what level it has grown at time of the general amnesty, such wealth would be subject of total confiscation; thus, it would be to the advantage of the concerned citizens to come clean than to attempt to continue to hide such stolen wealth.
  23. In cases where those original persons responsible have died, it will be the responsibility of their heirs to so declare these facts to the extent that they are aware of them and to provide all available details in order to avail benefits of amnesty.
  24. The declared wealth will be treated differently according to the source of the money. Money that was generated as a consequence Tax evasion would be treated differently to that stolen from the national or state exchequers through any means including the cornering of land, licenses, money parked or legitimized through setting up of educational institutions, hospitals, land-bank companies and township developers and so on.
  25. In cases of tax evasion, if a business, the government will simply collect a sum equivalent to 5% of the current turnover for 10 years as recompense for the past theft.
  26. Tax theft will need to be treated leniently. The rationale being that in the past tax laws and regimes were so stringent as to be a complete disincentive, even to those who are fundamentally honest, in declaring their hard-earned income. Huge number of people never came into the tax bracket, as they declared no taxable income.
  27. If the business were set up with money that were the result of official corruption in any form, the government would take a position equivalent of up to 40%, but ideally no more than 25% of the value of the asset base at time of full disclosure i.e. a predetermined percentage of the asset as tax and / or equity and / or penalties but will allow the declarer to keep a significant chunk of what has been stolen from the nation. This principle would apply to assets that would include businesses, properties, shares, stocks and other investment instruments or deposits.
  28. A mix of low back tax percentage, no more than 18.5% and / or 40% stock transfers to government coffers as minority shareholding of companies formed with ill-gotten wealth could be considered so that the actual management of enterprises would remain in the declarers hands, while creating a compensation frame for the nation.
  29. Equity so acquired by the government may be sold back to declarer or on open market at market rates for each such transaction, whichever is higher.
  30. While it would be true and accurate to take the position that theft from the national or state exchequers should not be forgiven, the core idea is to bring everyone into the national mainstream and to recover the wealth of the nation by providing the opportunity to come clean. A material and spiritual re-set so to speak.
  31. If fear and harsh punishment are eliminated, and a genuine assurance is given through amendments to the law, that citizens will not be penalized beyond a reasonable and bearable limit, it is anticipated that most would come into the mainstream and end up contributing to the explosive growth required by the country to catch up with the developed world. Most of these individuals would be intelligent, resourceful and well connected throughout the world and would have the wherewithal to be of great service to the nation.
  32. These are radical ideas but are placed before the citizens of India to vote upon, and need to be considered for the long-term health of the country. The policy must bring out black money, create a stable and exciting environment in which Indian companies and individuals can compete on the world stage.
  33. The complete details and modalities will be worked out by a duly constituted Plans Board with deep thought and wisdom so that a holistic and fair approach form the basis of the amnesty.

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