Who Painted My Money White

by Sree Iyer

  The Prime Minister called his closest political and personal associate, the party president, Kapil. There was just one thing to do, Hasmukh said, and it was to seek PP’s resignation. The party chief was asked to convey the message, along with the information that the Prime Minister was in possession of the telephonic conversation records.

  It was a politically dull weekend and the 24X7 electronic media had reconciled to playing softer stories. Word went around that the Finance Minister would be addressing a press conference in the presence of the People’s Voice president at the party’s swanky new headquarters. Most in the media assumed that the Finance Minister would announce measures to boost the economy or some such.

  Once the cameras had been set up, PP appeared on stage and read out from a prepared statement: “In view of my indifferent health — something that you have been aware of, for some time now — I have decided to resign from the Union Council Of Ministers with immediate effect. I thank the Prime Minister for having given me an opportunity to serve the government. I also thank my party president for reposing trust in me, and the millions of party workers who stood by me through all these decades of my political career.”

  The press meet ended. No questions were taken from the media.

  CHAPTER 38.

  What to do with the grey money?

  It had been only two days after their last meeting, and Govindan was called by the Prime Minister one more time. The PMO informed him that two full hours had been slotted for the meeting. Govindan was surprised since the Prime Minister was a busy man and rarely gave such long slots to one-on-one deliberations. What had happened in the last two days that the Prime Minister needed to summon him once more, he wondered.

  The maverick academic politician had maintained close bonds with Prime Minister Jadeja for years now, though he never flaunted the friendship in public, unlike several others. But the fact that he was at odds with others who were close to Hasmukh, had affected his political career. He was just a Rajya Sabha member, although many non-partisan commentators and some from the party often said he deserved to be in the Council of Ministers.

  He had taught Economics in major international institutions and had served in the government years ago, with some distinction. He often thought out of the box and offered unconventional and effective solutions to boost the country’s economy — suggestions that were unsolicited but sensible. But even though he had been kept out of the cabinet, he had direct access to the Prime Minister.

  Govindan could have made the cut, but for PP’s opposition. PP had made it known to the Prime Minister that Govindan was unpredictable (which was true), he was a motormouth (which was false), and that he was a pro-Hindu rabble-rouser (the first bit true, the second, a convenient fabrication.) Besides, he was a litigant in several cases in the apex court, including the Ayodhya Ram temple dispute, and financial impropriety cases that targeted key members of opposition parties. PP argued that a Union Minister could not be seen as pursuing private cases. The Prime Minister had conceded but continued to take Govindan’s counsel. Many of his suggestions never got implemented because of stiff resistance from PP and a clutch of other ministers who sided with him.

  Govindan had never been the networker that PP was and yet he had contacts with a range of influential people, including those in the media. He used those connections to ensure that his opinions on a variety of contentious issues were duly reflected. It helped that many of his legal initiatives had led to major episodes of embarrassment for his rivals once the courts took cognisance of his interventions. The prevailing perception was that the government usually used Govindan’s shoulder to fire at its opponents. He ventured where the government feared to tread.

  Ushered into the Prime Minister’s office, he was pleasantly surprised to see Jagat Dhillon there as well. He shook hands with the former Prime Minister and settled down. Although he had been a critic of the previous government’s policies and actions, Govindan had been careful not to be too harsh on Jagat. He directed his tirade at Dipika and her sycophants for the Dhillon government’s failures. His belligerence was widely accepted; it was an open secret that Jagat Dhillon had been just a proxy, while the real decision-maker was Dipika. Govindan too had labeled Jagat a spineless pawn but changed his views, holding earnest respect, after Jagat’s bold move to dissolve the House. “Better late than never,” was his remark over the former Prime Minister’s turnaround.

  The Prime Minister came straight to the point. He looked at his predecessor and said, “Jagat ji, Ye jo hua, accha nahin hua (What happened was not okay.) How could you allow thousands of crores of counterfeit currency to enter the country? The RBI is complaining that 113% of the money has returned into the system. Informal estimates point to at least another 10% counterfeit currency presently in circulation. That your ministers had a hand in it, and you could do nothing, is really sad.”

  The Prime Minister was mindful with his words, which is why he said, ‘you could do nothing’ instead of ‘you did nothing.’ Jagat remained characteristically impassive and shook his head. “To deter counterfeiting, we have tried everything, from changing the size of notes, to altering the security threads and the denominations even. But the FICN menace continues to flourish. Ramaswamy and you are the economists. What do I do next?”

  It was not always that Hasmukh sought the views of his predecessor. In fact, the first time he met former Prime Minister Dhillon after the elections was during his oath taking ceremony. It was seen as a courtesy call by the new Prime Minister and an outreach to the opposition as well. Hasmukh met Jagat several times after that, but only at formal occasions, where the two would always be surrounded by people.

  Jagat was quiet for several moments and glanced at Govindan, as if to say he had no suggestions. Govindan cleared his throat and said, “There are ways to get out of this mess. But you must let me see it through. If the bureaucrats are allowed to handle it, they will mess it up; just like they did with demonetisation.”

  “What are your suggestions?” the Prime Minister asked.

  “First, phase out the Rs.2,000 notes and then the Rs.500 notes. Make Rs.200 as the maximum value denomination. The large volumes of notes will make it difficult to distribute big amounts of money during election time. It would act as a deterrent, to some extent, at least.”

  Jagat looked on, not intervening. Govindan continued with his radical ideas.

  “Second, abolish personal income tax. I realise that about 30,000 officers in the Income Tax Department would be rendered jobless if that happens. I have a suggestion for that too. Make up the revenue shortfall in other ways, such as raising money through auctions. Instead of taxing income, tax consumption. Indians are prudent and therefore they will save what they don’t spend and that will immensely help the banks, which are facing a severe capital crunch.”

  “Hmm,” the Prime Minister said. Jagat continued to look on. It was difficult to ascertain whether his silence was a speechlessness at these unconventional ideas or his usual quiet. Govindan now had the Prime Minister’s full attention.

  “Third, work with the United States and get the software they use for tracking illegal wealth of Indians who keep moving their assets around the world. If you catch the Top 100, attach their assets and bring them back to India; it can act as a powerful deterrent. Most tax havens follow British laws, and so if you can convince the British, you will succeed. Tell the laid-off Income Tax officials that they will get paid 3% of the money that they manage to bring back to the country. They know every loophole that was used to send money abroad and they know every means to bring it back. Let greed work for you.”

  The former Prime Minister was shifting in his chair. This was getting too radical for comfort.

  “Finally, create a Ministry of Monetisation. All money from abroad will come to the new ministry. It will be this ministry’s mandate to appropriate the money to banks and other financial institutions, under a team that I would be happy to supervise. We must create the financial system
s of tomorrow and use new technologies such as Blockchain to ensure that every loan disbursed or collected is tracked, with no loophole for corruption. In about two years, the system will set itself right and you will start witnessing robust growth.”

  The Prime Minister looked at Jagat. He expected more than a passive response from this erudite economist. Jagat finally cleared his throat and said that the plan could work, provided clean and honest officials were put on the job. “They must take pride in what they would be doing.”

  Hasmukh thought for a few moments. He was happy at finally getting Jagat on board. If questions were later asked about the decision, he could always point out that even Jagat Dhillon, a political rival, had supported it. The Prime Minister told Govindan, “I will issue the necessary orders to set up an oversight committee headed by you. Since I have taken temporary charge of the Finance Ministry, the process should be completed in a couple of days. You have less than two years to set the ship on the right course — elections are due after that. If you fail, I’ll take the responsibility; if you succeed, credit will go to you.” The meeting was over.

  The mark of a true leader, Govindan said to himself as he walked out of the Prime Minister’s office.

  CHAPTER 39.

  A new relationship?

  Mike updated Karan of the conversation he had with the Prime Minister. He congratulated Karan and Priya on a job well done. Now that the hectic scampering/ running around was over, he suggested that Karan and Priya take a few days off before getting on with a new assignment. He also suggested (more like ordered) that Karan take Priya out for dinner at a fancy restaurant – the Intelligence Bureau would pay.

  Manch (should it have been named Munch?) was a restaurant tucked away in the basement of a popular five-star hotel. Priya got her hair done and let it hang stylishly down her shoulders. She chose a dark blue, almost black chiffon saree to go with a low-cut sleeveless blouse, a far cry from her non-descript jeans and tees. She had showed up at the restaurant, fashionably late, by 15 minutes. Karan was seated at a table facing the entrance of the restaurant, pondering over life and circling ice cubes in his glass of water.

  Used to seeing him in plain shirts and his signature cargo pants with multiple pockets, Priya was as surprised (pleasantly) when she saw Karan. Dressed in a coffee-coloured button down shirt with Khakis and tan moccasins, throwing over a cream colored sports coat, he had arrived 15 minutes early, with a visit to the florist made in between. So, lying beside him was a bunch of lush lilies (as advised by his mother who was pleased that her son was finally out on a date after his divorce.)

  They had both worked long hours for many days under immense pressure. But small talk was turning out to be difficult. Karan finally said, “You look ravishing!” and Priya put on a fake-outraged expression but was pleased that Karan had noticed. She replied, “You don’t look too bad yourself!”

  The ice broken, they slipped into easy conversation. For once, Priya wasn’t gobbling down her dinner.

  Soon enough, they began to lose track of time, getting deeper into each other’s personalities, discovering common interests and intrigued by the differences.

  CHAPTER 40.

  The next battle

  There was no time to lose. The Prime Minister had a meeting with the Governor of the Reserve Bank of India and told him to phase out the Rs.2000 and Rs.500 denomination notes over the next six months. A tender was floated to purchase software that would track the movement of unaccounted money of Indians lying in various tax havens across the country, in real time. The American firm got the order as it exclusively met the parameters laid down. It was told to deliver the software in flat eight months’ time.

  The United States had enacted stricter norms for tracking money laundering by establishing a new division called the Office of Foreign Assets Control (OFAC), which monitored rogue regimes, terrorists and money laundering by other countries. It thereby tightened the laws around tax havens to make them more accountable. India and the US began co-operating closely to track the menace of black money and the results started showing. The message went out loud and clear. You cannot cheat any more!

  The Finance Ministry’s senior bureaucracy was completely revamped with newer people, chosen for their credentials and impeccable integrity, besides their alignment with the government’s vision. The oversight committee headed by Govindan Ramaswamy too was notified and it began to function without delay.

  Everybody worked extra hours to implement the changes. But that was the easier part. The more difficult one was the decision on abolishing income tax. The Prime Minister felt that it would be too radical to do away with personal income tax in one go, an opinion that CK shared. It was, therefore, decided to completely abolish income tax on earnings up to Rs.10 lakhs per annum, and keep the maximum tax at 10%. This in itself was revolutionary for now. Govindan saw the logic in it and concurred.

  Meanwhile, probes into the various scams had picked steam. The noose began to tighten further around Maida and Dalda, who had been out on bail. There was no saying when they would be rearrested on other charges as the investigations progressed.

  The cumulative impact of the dramatic monetary decisions began to be felt in about a year’s time. The salaried class was ecstatic; it now had more money to spend and save. Demonetisation too had begun to yield results.

  Prime Minister Jadeja finally had something concrete to show on the financial front. The already crumbling Freedom Party was further slipping into irrelevance. Since its main agenda was to criticise the policies and decisions of the Jadeja government, it was almost jobless. It could not possibly criticise the move to empower the salaried class or withdraw the high-value currency, especially when the RBI had pumped in enough of the new, smaller notes into the system. Every time a leader of the party went to jail, they kept crying political witch-hunt. But not many were swayed by their crocodile tears anymore. It was a new beginning for the nation, the average age of which was 27 years. Young India was here, clear and confident of what it wanted to achieve.

  Meanwhile, another country, in India’s neighbourhood, was lurching deeper into anarchy. Yet its intelligence wing plotted away…

  Reference links

  Container with suspected fake currency held at Cochin port - https://www.rediff.com/news/report/container-with-suspected-fake-currency-held-at-cochin-port/20090706.htm

  De La Rue currency scam – How PC and a few officials compromised National Security - https://www.pgurus.com/de-la-rue-currency-scam-how-pc-and-a-few-officials-compromised-national-security/

  With millions flowing in illegally, is India in for a major security crisis? https://www.pgurus.com/with-millions-flowing-in-illegally-is-india-in-for-a-major-security-crisis/

  How Money is Made – LEPE, 50-Subject Sheet Processing - https://www.moneyfactory.gov/hmimlepe.html

  Drug money from Pakistan-based cartel may have funded terror attack in Sri Lanka -

  https://economictimes.indiatimes.com/news/defence/drug-money-from-pakistan-based-cartel-may-have-funded-terror-attack-in-sri-lanka/articleshow/69050982.cms?from=mdr

  14 Tamil Nadu men arrested in connection with Easter day blasts in Sri Lanka - http://www.newindianexpress.com/states/tamil-nadu/2019/jul/16/14-tamil-nadu-men-arrested-in-connection-with-easter-day-blasts-in-sri-lanka-2004458.html

  FICN: Relentless Intent -

  https://www.sify.com/news/ficn-relentless-intent-news-terrorism-mequwtdihecsi.html

  Indian Fake Currency Notes (IFCN) and ISI - https://www.indiastrategic.in/topstories412.htm

  India a key hub for illicit drug trade; use of darknet, cryptos rampant: UN body - https://www.thehindubusinessline.com/new/india-a-key-hub-for-illicit-drug-trade-use-of-darknet-crytos-rampant-un-body/article26440255.ece

  Poisoning for Dummies - https://slate.com/news-and-politics/2013/04/how-to-make-Ricin-you-dont-have-to-be-a-skilled-terrorist.html

  Ricinus - https://en.wikipedia.org/wiki/Ricinus

  Poisonous plant diversity in Kerala and th
e antilarvicidal properties of various plant parts against target and non-target organisms: A brief overview https://www.researchgate.net/publication/304606424_Poisonous_plant_diversity_in_Kerala_and_the_antilarvicidal_properties_of_various_plant_parts_against_target_and_non-target_organisms_A_brief_overview

  Top 10 Most Dangerous Plants Found in India - http://www.walkthroughindia.com/nursery/top-10-most-dangerous-plants-found-in-india/

  A survey of Poisonous plants in Nilambur, Kerala, India - https://www.ijcmas.com/vol-3-11/Anju%20Antony%20and%20Mary%20Josephine.pdf

  Castor bean harvest in full swing at Pachamalai - https://www.thehindu.com/news/cities/Tiruchirapalli/castor-bean-harvest-in-full-swing-at-pachamalai/article8543596.ece

  Stages of Money Laundering - https://calert.info/details.php?id=1239

  ISIS and propaganda: How ISIS exploits women - https://reutersinstitute.politics.ox.ac.uk/sites/default/files/research/files/Isis%2520and%2520Propaganda-%2520How%2520Isis%2520Exploits%2520Women.pdf

  How Can We Check the Purity of a Substance? https://sciencing.com/can-check-purity-substance-5950683.html

  What is Electron Microscopy? https://www.umassmed.edu/cemf/whatisem/

  How your septic system works - https://www.epa.gov/septic/how-your-septic-system-works

  Lloyd Electric and Engineering - https://www.railway-technology.com/contractors/hvac/lloyd-electric-and-engineering/