The Narendra Modi government has shown commendable intent in breaking the backbone of the parallel economy in the nation. It has gained considerable success as well seeing that it has been in power only for three years. One could argue that it has done more to stop creation and flow of black money than any government in the past.
The Modi government has told the Supreme Court that massive searches, seizures and surveys by the Income Tax department over the last three years have led to the detection of around Rs 71,941 crore of black money.
The Finance Ministry has also told the court that from November 9 last year to January 10 this year, the total undisclosed income admitted was more than Rs 5,400 crore and the total quantity of gold seized stood at 303.367 kg.
The affidavit submitted by the government said that during this 3-year period searches were undertaken by the IT department in over 2,027 groups which led to the admission of undisclosed income of more than Rs 36,051 crore. In addition to this, undisclosed assets worth Rs 2,890 crore were also seized.
Between April 1, 2014 to February 28 this year, the IT department conducted more than 15,000 surveys which led to the detection of undisclosed income of more than Rs 33,000 crore.
The affidavit read: “They (actions by IT department during the two months of the demonetisation period) included 1,100 searches and surveys and more than 5,100 verifications. The total seizure through these actions was of about Rs 610 crore, including cash of Rs 513 crore. The cash seizure included seizures in new currency of more than Rs 110 crore. The total undisclosed income admitted was more than Rs 5,400 crore.
Seizure of cash during the month of November and December 2016 was to the tune of Rs 147.9 crore and Rs 306.897 crore and seizure of gold for the month of November and December 2016 was 69.1 kg and 234.267 kg respectively.”
Another massive achievement of the Modi government is in relation to the black money stashed in Swiss banks. The government will start to get automatic information on the holders in Swiss banks from 2019. All in all, not only has the quantum of black money being taken out of the country fallen, but also its generation has reduced.