The black money monster

The high drama over Baba Ramdev's midnight eviction and action against the peaceful gathering has shifted the focus away from the central is sue raised by the Baba – black money overseas – to the right to protest in a democracy. This being the case, there is danger of an uninformed debate on black money taking over, guided more by emotions and populist talk rather than an understanding of the problem and how it is best tackled.

Black money is money that is un accounted for – in other words, money generated by income that has either not been taxed or through criminal means, be it by drugs or arms running, ransom to kidnappers, bribes taken by politicians and officers, and so on. It is important to understand where different kinds of black money converge and where they diverge.

In the pre-liberalization era, it was common for businessmen to siphon their money abroad. While technically this was illegal, there were very good reasons why most businessmen hardly suffered from any sense of guilt Tax rates in this period were unrealistically high; marginal taxes could go up to as high as 97%! To pay such high taxes and generate the necessary surplus for legitimate business activity was virtually impossible.

Not just income tax, other levies stamp duty, wealth tax, building tax too were unrealistically high. There can't be an argument against necessary taxation needed to create the infrastructure of security, property and law for a well-functioning economy. As The Economist pointed out: "Necessary taxation is not theft. But there are margins at which taxation becomes difficult to distinguish from theft."

Besides lower taxes allow people to enjoy the fruits of their labour. As Edwin A Locke, professor emeritus at the Maryland University adds, "Lowering taxes is to allow the productive keep what they earn rather than forcing them to support the non-productive."

In the pre-liberalisation era, high taxes, how ever, did not diminish the demand for speed money or bribes. Officials demanded and received bribes for clearing import or export licences In the secretariat similar gratification was demanded for industrial approvals while deciding how many scooters a two-wheeler manufacturer or how many tons of cement a company could produce.

Businessmen, therefore, needed to keep unaccounted money to pay off the bribe-seeking babus. Businessmen, seeking to bring the state-of-the-art foreign technology or to find overseas markets, needed to travel abroad. And the permissible limit of foreign exchange was a niggardly $500 – an amount that would be over on a couple of days food and stay, leaving zero for entertainment and networking. Hence there was a clear incentive to keep money overseas.

Two decades into liberalization and easier controls, these norms are virtually forgotten But it's these which forced businessmen whose salaries, too would be determined and capped by the government – to bend the absurd laws. Now, should they be punished in the heat of the moment when all black money is sought to be painted by the same brush?

The approach to black money should be nuanced. (In our accompanying 'Times View' we have suggested a one-time amnesty for the businessman category). Those who have sent out money only to carry out their legitimate business should not be con fused with criminals who have siphoned out money. It is the latter that the government needs to target – the corrupt politician, the bribe-seeking bureaucrat, the drugs dealer, etc.

Laws are much more relaxed now – tax rates are comparable to the lowest in the world. Imports are easy — you can import almost anything as long as it is does not affect the environment or national security. Consequently, more people are paying taxes and smuggling of goods has fall en to negligible levels. This being the case, there is no mitigating reason for even businessmen to evade tax and siphon out their money to overseas tax havens.

However, no one likes to pay taxes. So, despite the fall in rates, importers still under invoice their shipments, while exporters over invoice While under invoicing helps avoid paying taxes, exporters can get additional benefits of export promotion schemes (meant to refund taxes by declaring a higher value of shipments. So, with an easier tax regime there must be stronger enforcement. In the US, for in stance, few take the risk of dodging taxes because the penalty is prohibitively high.

The strongest enforcement should be directed against of course the criminal elements, but also against corrupt politicians and bureaucrats. This is be cause unless the hidden cost in the economy – resulting from the need to pay bribes is removed, it would be extremely difficult to root out black money. Because businessmen will then generate unaccounted money to pay off the neta or the babu.

The economy's hidden cost often leads to hidden consequences. There is no reason, for instance, why property in big cities like Delhi or Mumbai should be out of reach of every one barring the super-rich. This is because of black money. Often a house costing Rs 1 crore would be registered for Rs 50 lakh, or less. This kind of market distortion suits those with oodles of unaccounted moolah, not the tax-paying salaried class. Once black money is reduced in the economy price levels in the real estate market will naturally seek lower levels, making property much more affordable.

So, the battle against black money is a noble one, so long it's not allowed to become a witch-hunt against businessmen. After correcting the consequence of past distortions, India should reach international pacts with countries like Switzerland, Mauritius Cayman Islands and the Isle of Man to keep a close tab on money being il legally routed there. And at home there should be proper financial intelligence to minimize tax evasion.

Aamir spoofs Disco Dancer

Kiran Rao and Aamir Khan More Pics

Mithun Chakraborty is known as the original disco dancer of India for a reason.

The film Disco Dancer, to be precise. His legendary pelvic thrusts and disco moves have inspired many a choreographer in Bollywood through the years. While Sajid Khan paid a tribute to this legendary dance move in the Pappa Jag Jayega song in his film Housefull, Aamir Khan has planned to pay homage to Mithunda in an all new style.

Vir Das in the song Jaa Chudail will dress up as Mithun Chakraborty in Disco Dancer.

He will also be seen executing the famous Mithunda step aka the pelvic thrust while manhandling a woman.

Delhi Belly, which has already been in the news for the released music videos DK Bose and Nukkadwale Disco seems to be drawing a lot of attention with its shockingly unique marketing strategy.

While DK Bose sparked off controversies with its lyrics, Nukkadwale was said to be take on Ghazal maestro Pankaj Udhas. And now, the Jaa Chudail number may just be construed as misogynist.

Meanwhile, a promo of the film has been shot which has Imran Khan mouthing maa-behan gaalis at his maamujaan. Our source told us, "It's all in fun. But it will shock Aamir's and Imran's fans. Aamir has always been known to be this no-nonsense guardian-like figure to Imran. And we presume that his nephew is afraid to some extent of his uncle. Therefore, to see him let off a chain of maa-behen gaalis to Aamir is quite a shock."

Surprisingly, it's Aamir who wants the potential audience for Delhi Belly to know that this is not a film for the squeamish or the purists. The whole aim of the music videos and the trailer in question seems to be to let people know the same.

Why star siblings don't make it big

Call it dynasty, a calculated move, or cashing in on the success of a sibling, but stars do have a kin following close on the heels who also wishes to try his/her luck in tinseltown. The latest to join the bandwagon is Isabella, the younger sister of Katrina Kaif. If buzz is to be believed, Katrina is heavily promoting her younger sister to various topnotch directors. History bears testimony to the fact that the trend is not new. Filmdom has witnessed many sisters and brothers who have tried their luck at the BO. But not all taste success. In fact, it is only one of the siblings who is usually able to make it big in Bollywood. Amongst the three Kapoor brothers, only Rishi could make it big. Similarly, big brother Salman Khan is way ahead of Arbaaz and Sohail. Between Sunny and Bobby Deol, Bobby could not achieve the levels attained by Sunny. And no comparisons can ever be drawn between Aamir and Faisal Khan. Farah couldn't really make a mark here while Tabu went on to carve a niche for herself as a superlative actress. Malaika Arora Khan is known as a sizzling model and item girl but her sister Amrita Arora is still trying to find her niche. Despite using the contacts of their more famous kin, why can't star siblings make it big? What could be this factor, which does not allow success to knock repeatedly on the same door?

Finding a foothold

It could be the lure of stardust, the glamour or even the big bucks that beckon the star siblings to try their luck in Bollywood . Shamita Shetty, the younger sister of Shilpa Shetty, who has finally found her foothold in Bollywood, says, "I think it is all about one's destiny. We are exposed to the industry and many times offers do come the way of a star sibling. But which one of them will be successful depends on the factors like luck and inherent talent." And is she still recognised as Shilpa's younger sister? The actress is quick to retort , "I will always be Shilpa's younger sister , but yes now I have been able to carve a niche for myself. I get roles on my own steam, and I am happy if someone refers to me as Shilpa's li'l sister."

The sister act

In the case of Farah and Tabu, it was Farah who had debuted much before her younger sister. She had worked in many films and had also played the protective elder sister off screen. But once Tabu had her films released, Farah was totally eclipsed by the beauty and talent of her younger sister. Actress Sameera Reddy, whose elder sister Sushma Reddy also debuted with a film called Chocolate, before she called it quits, says, "My sister tried films on an experimental basis, and I am the one who is pursuing Bollywood full throttle. But even when my sister was working in films, comparisons were never made between us."

Brotherly woes

Bollywood brothers haven't fared any better either. Manisha Koirala's brother Sidhartha could not make a mark. Amisha Patel's brother Ashmit is still waiting for that elusive hit. Says Ashmit, "When I entered the industry, my sister was already a huge name. I did get a lot of publicity by virtue of being her brother, but today I am an individual in my own right. After the initial flush, it is your personal merit, which counts."

In the same mould

There are certain exceptions to the rule, though. Film director Kunal Kohli explains it thus, "Usually, if a director has worked with one of the siblings, he tries to mould the other in the same way, and this curbs the natural style of the actor. In the case of Kareena and Karisma, both had spaced their careers, and had also stylised them in a very different manner, thus both of them have done very well."

The Yogi who cast a spell

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Baba Ramdev is the public face of the two-man team that runs a vast multi-crore yoga and ayurveda empire. The lesser known partner is Ramdev's friend from their gurukul days, Acharya Balkrishna, who rarely steps out from their base in Haridwar.




The man who now flies around in a private jet once used to ride a bicycle to his yoga camps and to sell the ayurvedic medicines Balkrishna concocted. That was in 1993. In less than two decades, Ramdev has soared to celebrity status as a television star with eccentric ideas and out-sized ambitions. His programmmes, aired on Aastha channel, are watched by lakhs of believers who eagerly await his daily dose of yoga and quirky morality.



He was not always Ramdev. The 58-year-old yoga teacher was born Ramkishan Yadav in a small Haryana town named Alipur. As a child, he suffered from paralysis. He claims it was only yoga that cured him, making him a die-hard devotee of this ancient science of breathing and exercise.

‘Satyagrahi’ Baba Ramdev

After the unprecedented success of noted social activist Anna Hazare’s crusade against corruption, acclaimed yoga guru Baba Ramdev is all set to undertake a fast unto death to press the government to bring back black money stashed in foreign banks.

Baba Ramdev’s 'Satyagraha Against Corruption' movement is in line with Hazare’s ‘India Against Corruption’, which garnered massive support from the country’s elite and the ordinary, asking the government to pass and enact a strong legislation in this regard.

The yoga exponent’s proposed stir on black money has prompted many to think whether Baba Ramdev is trying to increase his political weight through this movement or is it an attempt to delink himself from Hazare’s Lokpal campaign after he was ignored during the constitution of Lokpal Bill drafting panel?

His detractors think that Ramdev is just another opportunist who is trying to generate people’s support for his movement, similar to Hazare’s campaign, and blackmail the democratically elected Congress-led UPA government at the Centre.

Baba Ramdev is demanding that black money stashed abroad by Indians be brought back and declared a national asset. Ratification of the UN Convention against Corruption and ban on all high-denomination currency notes such as Rs 1,000 and Rs 500.

But whatever one may conjure, Ramdev’s movement has put the UPA government on the backfoot, which does not want another ‘Anna Hazare’ like movement at any cost or any further question mark over its credibility. .

The government has reasons to be worried considering the huge following Ramdev has built up over the years by preaching good health to India’s teeming millions. Moreover, his honest image, especially, his oft-repeated war cry against corruption and the corrupt, and the fact that Ramdev is extremely “TV friendly”, has forced the government to go that extra mile to persuade him against the “Ramlila Maidan plan”.

It’s certainly evident Ramdev’s campaign has been widely received by the countrymen who have registered in large numbers, expressing support to his movement. He is certainly more credible than most politicians of our country, so there are lesser chances of his movement not achieving the same success as that of Hazare’s.

However, there have been murmurs of a rift between the yoga guru and Hazare’s camp after Ramdev went public with the view that people holding the post of Prime Minister and the Chief Justice of India should not be brought under Lokpal’s ambit.

Although, he has now taken a complete U-turn on the issue but what he has ended up doing is to present a different view on the Lokpal debate.

Interestingly, Ramdev has invited Anna Hazare, former IPS officer Kiran Bedi and Karnataka Lokayukta Justice Santosh Hegde to join his movement but has not invited Lokpal Bill drafting panel members Shanti Bhushan and his son Prashant.

The increasing gap between Hazare and Ramdev’s camp is likely to benefit the UPA government, which differs with the civil rights activists on the scope of the Lokpal Bill.

As the situation stands, Ramdev appears steadfast in his resolve to go on a fast against corruption despite the Centre's efforts to placate him over his demand for action on black money. Ramdev is aware that the government of Dr Manmohan Singh is under scanner over corruption allegations, and so it is weak and vulnerable.

The cancer of corruption is slowly eating up our democratic institutions and bringing more disgrace to India as a nation globally. Since people are fed up with corruption, any call from a reputed and honest person, could easily cause discomfort to the government.

But whether Ramdev has the fire and resolve to achieve his goals only time will tell, even as the country gets ready for another anti-corruption jamboree.

World Tobacco Day

A sandal, made from 15,000 cigarette sticks by anti-tobacco campaigners, is displayed in a Mumbai mall on Anti-Tobacco Day.