Black Money in India: Retrospect and Prospect

Abstract

The paper makes a review of the attempts of the earlier governments to control black money through various measures vis-à-vis those taken by the present government. The paper finds some leniency in the recently declared Electoral Bond scheme otherwise such other measures of the present government appear to be more focused and reasonably effective. Demonetization was criticized due to the fall-out on the economy in general and its failure as an economic measure to curb black money in particular. The government remains successful in signing too the long awaited Tax Information Exchange Agreement with countries known as tax havens. It is implementing the new Black Money Act. Thus, not remaining exclusively dependent upon tax amnesty schemes like that of the previous governments; the present government has taken a few stern measures in pursuit of fulfilling the ruling political party's election promise to curb the black money menace. Appointment of anticorruption authority or ombudsman following the required legislation having passed under the pressure of an apolitical social movement is the need of the hour. The already existing Prevention of Corruption Act should be suitably amended as proposed, thus not to retain the same any more as a blunt legal weapon to restrain corruption engineered black money.