Indian Black Money in Swiss bank may return

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Indian Black Money in Swiss bank may return: Indian Black Money in Swiss bank may return to All Indian Citizens

Bangalore, IndiaHyderabad, India
Year Founded:
2013
Organization type: 
for profit
Project Stage:
Start-Up
Budget: 
< $1,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

This distant dream might become a reality, if the claims made by central agencies and stock brokers are true. As per these agencies, which have been trying to track the black money, stock market, hawala transactions and gold smuggling are some ways through which a considerable amount of money has...

WHAT IF - Inspiration: Write one sentence that describes a way that your project dares to ask, "WHAT IF?"

The Indian black money doesn't return to India
About Project

Problem: What problem is this project trying to address?

Corruption in India, reached to max level and Indians had more black money in Swiss bank than any other country.

Solution: What is the proposed solution? Please be specific!

The new govt of Modi has a taken a serious step to return Indian black money from Swiss bank to India. However this require lot of support from the swiss bank management, generally they don't reveal their customers fund details, but Indian govt has to impose a pressure that will make it happen.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

Primarily two purposes have lead to the inflow of black money in recent years. First is election activities, while second is influenced by the risk that BJP candidate Narendra Modi might introduce a strict law to bring back the money in case he comes into power(he is already in power). Rather than waiting, inflow of stashed money started and an estimated 1500 to 5000 crore rupees are believed to have returned, especially through stock market, in past few months.

Impact: What is the impact of the work to date? Also describe the projected future impact for the coming years.

Similar claims are being made by Vijay Jadhav of Mumbai, the person claiming to be forensic auditor. While working on his project titled Operation Black Money Return, he analyzed the data of Reserve Bank of India, commodity exchange’s confidential data, gone through bullion trader’s network and interacted with forex and commodity experts. What he concluded is that black money is already arriving in our country and the estimated figure is 23 Lakh crore rupees.

Spread Strategies: Moving forward, what are the main strategies for scaling impact?

As per Jadhav, while central government was starting a campaign for bringing black money back from Swiss bank in 2000 & 2003, entities and individuals who had secret accounts in that bank were already planning an exit strategy. One way they preferred was converting hard cash into commodity and that is why about 7000 to 8000 tonnes of gold was bought with that sum of money. However, as the gold price was about 300 dollars per tonne in international market, the foreign banks were set to face a loss as they could not have got anything above than 200 dollars per tonne while trying to sell the gold
Sustainability

Financial Sustainability Plan: What is this solution’s plan to ensure financial sustainability?

A statement made by a minister in 2003 mentioned that annual consumption of gold in India was about 800 tonnes, while in reality the total consumption of gold internationally was 700 to 800 tonnes per year. As per a report by RBI, 467 and 367 tonnes were mentioned as annual gold consumption in 2002 and 2003 respectively, by World Gold Council. It becomes clear that wrong and increased figures were quoted to misinform the common man and bring back

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

It was commodity exchanges that popularized gold among Indian investors and that is the reason why tonnes of gold was dumped in India by foreign banks. Besides gold it was stock market that formed a preferred choice. People associated with corporate world, or who owned industries, used FIIs or foreign institutional investors and p-notes or participatory notes for investing in Indian market. once the forex money started to flow in, new projects were being set up and properties were being purchased. As the money flowed into Indian market, the prices of properties went up, along with investment
Team

Founding Story

To conclude, it is crucial that central agencies and forensic experts check where the black money is; lying in secret bank accounts or it has already come to India. However, making everything right might not be easy. While claims have been made to know the names of account holders, it is difficult to believe that the money will be still lying in bank lockers.

Team

Mazhar, Harmeet and team