Indian Kanoon - Search engine for Indian Law

          Black money is a wasted money. It has got no utility value. When it is transferred abroad, there it is actually a drain of surplus affecting domestic investment and consumption. When it remains here, it functions as a non-performing and non-productive asset, having been invested in secondary stock market, real estate and in luxury consumption areas. Since it hovers around the elite, it worsens the inequality level still further. It erodes the State’s much needed expenditure that would have benefited the poor and the marginal people cutting down the means of their livelihood and improved quality of life. According to reliable estimates, it forms 50 per cent of our GDP. Between 2002 and 2011, 343.04 billion dollars of illegal money has gone abroad. In the beginning of this period India was the fifth largest in the outflow of illegal money. But at the end of this period, we have advanced to third place in the world. This is a tremendous achievement when compared to the poor record of our country in the various growth parameters in the world. Indian economy had a potential for 12 per cent growth rate. But because of black money, it is restricted to seven per cent only. None can do so much harm to our country’s growth. They are challenging the Government by running a parallel economy. But still they have utmost protection of law. They could easily escape with impunity.