Thursday, 23 November 2017

Indian Middle Class Hypocricy

The much hyped Middle Class in India are the biggest hypocrites.
 
Two years ago, one of my Colleagues, a Senior Consultant working in Oman, but hailing from Tamil Nadu was vociferous about the Corruption in his home State. Most of the days one can hear him accuse both the AIADMK and DMK of destroying Tamil Nadu. He was a practicing Christian, and his wife was a Senior Government Servant. We all used to agree with him that the politicians in TN were a class apart in looting the State and how black money was the root cause of all evil.
 
Then his son passed his XII standard with around 70% marks. He moved heaven and earth to get a Medical Seat for his son, and ultimately paid close to Rs 55 Lakhs as Capitation Fee, and another Rs 50 Lakhs to be paid as Fee for the next 4-5 years. He also was using his Christian connection to the hilt, and even once had the temerity to tell me that he told his Parish Priest "Why should I be a Christian, if you cannot get my son a seat in a Christian College?'
 
One day, after he paid the Capitation Fee (he converted his hard earned white money to black money to achieve this!), he was again heard talking about Corruption in the State. I walked out of my cabin, and confronted him that he himself has contributed to creation of black money just recently.
 
Challenged, he went on the defensive. He said, he had no choice. I replied that he indeed had. All his son had to do is to study well and get a Medical Seat on Merit. Or alternatively he should take up some other course which his marks deserves. He would have none of it. His argument was that his son wanted to be a Doctor and nothing else. I stood my ground, and told him that then he should have worked towards this goal by studying hard and scoring high marks. All my logic fell on deaf ears.
 
He started blaming the Government, the Educational system, Self Financing Colleges, their greed for him having to pay the Capitation Fee. He did not want to take any responsibility for his action of abetting corruption to meet his ends and was in fact justifying his action for almost an hour. He wanted everyone to clean up their act before he turns honest
 
I saw the futility of arguing with him, but told him in no uncertain terms that he has forfeited his right to talk about corruption.
 
I made an enemy that day!!!
 
This is the typical Indian Middle Class hypocrisy.
 
The Indian Middle Class has been shouting about rising corruption, increase in circulation of Black Money, Political Ineptitude, Tax Evasion, Poor Services for ages. They wanted the Government to take action and clean up the mess.
 
Then they got the wish on 8th November 2016. Demonetization, followed by Digitalization, Aadhar Card linkage, insistence on Tax compliance had every economic crook running for cover.
 
You would expect the Middle Class to support the Government right?
 
But No!
 
The Middle Class, were evading the tax themselves by not insisting on bills for purchase, spending black money on real estate deals, not declaring their income to the Authorities, enjoying privileges like PDS, free White Goods, Subsidies, getting rent for their Property without disclosing et al., which they didn't deserve, and not being questioned by anyone, suddenly found themselves being disciplined and ask to organize their lives with the prevailing laws. And they hated it.
 
The Middle Class is the biggest hypocrites. They want everyone else, the Politicians, Bureaucrats, Society and even the Poor to clean up their acts, but they want their perks and privileges to be preserved, and not questioned.
 
It is why the Middle Class don't like Modi. They don't want to contribute to Nation Building.
 
But the Middle Class Vote Bank is a myth. They never went out and voted in any election. They were only good at cribbing, sitting at home. They mocked the poor and under privileged, ridiculed their lack of education, and wailed that it is the votes of these guys that decide who rules India.
 
They forgot that the Poor are Street Smart, more Socially Responsible, and Politically Savvy. They have always voted with sense, after Emergency, or Janata Rule, or for VP Singh (a vote against Corruption) and then decisively against the Congress and in favour of Modi in 2014. They know what is good for them. They stand in a much higher pedestal than the hypocrite Middle Class.
 
Modi knows this too. All his actions are aimed at creating a disciplined society, and upliftment of the poor, who constitute 70% of the Vote Bank. He is ensuring they get Electricity, Water, Toilets, Benefits of Direct Cash Transfer, Housing and Road Connectivity. Poor wants to live with dignity. They don't expect free lunch like the Middle Class. They are willing to tighten their belt and ensure India progresses.
 
And the rogue Middle Class who cuts corners? They have to either Ship up or Shape out. It is time they realized they don't have as much clout  they think they have. Their wailing against Demonetization and Tax Compliance don't matter at all.
 
That is the reality.

Wednesday, 8 November 2017

Demonetization is a "Small Step taken by a Bold Prime Minister, but a Giant Leap in the Country's fight against Black Money and Lawless Economy"

Much has been said about Demonetization that I don't want to add to the clutter in the cyber space by restating the obvious. I would rather take a different route.
 
I know a Real Estate Broker in a Semi Urban Town in South India. A very nice guy, he used to run a small bakery, lost everything, and then became immensely rich by becoming a Real Estate Broker.
 
A humble man, who is ever helpful, and who has not forgotten his past, he was the king in his business in his Town. The Doctors who wanted to stash away their black money, the NRIs who wanted to pay as little Stamp Duty as possible, other Businessmen who wanted to park their ill gotten wealth flocked to him before. He was trustworthy, and had a select set of loyal clients.
 
He dealt only in Cash, was a critical cog in the wheel of shady real estate transactions, helped suppress market value, aided buyers in underpricing the land so that they pay less stamp duty, facilitated Cash Transactions with Banking Transactions reduced to a bare minimum which helped the Crooks to route their Black Money. At any point of time you could see him with a Crore or two in liquid cash, and he lived a good life. Every now and then he will take off to a Metro, check in to a 5 Star Hotel and spent lavishly on himself. He also purchased land banks running into acres and hectares. He had no qualms about spending money on food or cars or hotels.
 
Then Demonetization hit on November 8th mid night 2016. He was made to run from pillar to post to deposit and convert the cash he had on hand. He asked everyone's help to allow him to deposit Rs 2.5 lakhs, the threshold beyond which Income Tax started raising its eyebrows. He asked me also. I flatly refused, though my accounts had limited money, and I had no black money to convert. But nearly 60 others offered him their bank account, and he was able to manage to some extend. He told me later that I was the only one who refused him, but he bears me no grudge. The panic he was in during the initial days of demonetization is difficult to explain.
 
A year down the line, he still deals in land, but his deal flow has reduced to a trickle. The system has not corrected itself, it is still rotten. But people are not as care free as they were before. The land prices have come down, the black money hoarders are scared as most of them are under the radar of ED and IT.
 
My Broker friend do not carry cash any more. He is afraid to spend money unnecessarily. The 5 Star hotel jaunts are a thing in the past. He is very conservative with his spending. He is waiting for the day IT swoops on him. He had already started to diversify to Real Estate Projects before demonetization. But now he is having a serious rethink.
 
He is hunting for people who has White Money, and he just doesn't want to go through the nightmare of last year and the scare he had.
 
In short, Modi's demonetization has put the Fear of God on him and his rogue Clients.
 
They are still carrying on their shady land deal but not as brazenly as before.
 
In short, they got a feeling/fear that their heydays are over.
 
My friend told me over phone that he has lost interest in amassing wealth, and just want to be on the right side of law as much as possible.
 
And he is Scared to Death about the impending implementation of Land Passbook and the strict implementation of the Benami Property Act.
 
HIS EXPERIENCE, to me, is the BIGGEST GAIN from Demonetization.
 
We are being turned slowly into a Honest Country. It wont happen in 5 or 10 years, but this is a baby step.
 
Neil Armstrong purportedly said on landing in Moon "That's one small step for man, one giant leap for mankind." (Though Technically this is incorrect. Armstrong, maintained afterwards that he actually said something slightly different: "That's one small step for a man...", which gives a totally different meaning).
 
Demonetization is a "Small Step taken by a Bold Prime Minister, but a Giant Leap in the Country's fight against Black Money and Lawless Economy"
 
 
 
 

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