Legal eagles cast doubt over guidelines to curb black money

Legal eagles and home buyers are harbouring serious doubts on the effectiveness of the new guidelines issued by Union finance minister Arun Jaitley to curb black money in the country. They opined that the guidelines would definitely be ineffective in at least two major departments – that of school admissions and the purchase of property – if not anywhere else, then in Delhi and its satellite cities.

“The requirement for PAN numbers in making purchases above one lakh could be enforced only when there are proper records of transactions. In these areas the entire transaction is made in cash with no valid records,” said H S Phoolka, a senior lawyer.

“Even the government is aware of the black money generated from in these two sectors. There already is provision for penal action in such cases,” he added.

The opinion of senior lawyer and president of All India Parents Association, Ashok Agarwal is similar on the issue. “These rules will not be able to make a dent on the black money market. The government must deploy raid teams to conduct severe raids across the city; trace the source of inexplicable wealth and track schools, which are coming up with more number of branches within short time spans,” said Agarwal.

Property dealings too, generate massive amounts of black money. “It’s convenient for both the seller and the buyer. The buyers do it to save duty while sellers do it to save tax and this is common knowledge,” said Abhishek Kumar, president of Noida Extension Flat Owners/Buyers Association.