© 2018 JETIR October 2018, Volume 5, Issue 10 www.jetir.org (ISSN-2349-5162) Unveiling the Black Money: The Limitation of Legal Controls Anupam Sinha, Research Scholar, PhD (Law) Jaipur National University Dr. Niharika Gaur Research Supervisor, Jaipur National University Jaipur, Rajasthan Abstract: Every day we hearing about the black money through print and electronic media, almost everyone is completely aware of this. Black money or unaccounted money i.e. money collected by the fraud or malpractices or to other malicious act by people and on which no taxes has been paid. Among those who make black money, are not just people of criminal nature or background but also includes people who have a respectful status in the society like our elected representatives, bureaucrats, businessman etc. In the 21st century, India is rising as one of the world’s fastest growing and developing nation in all aspects. We achieved many successes, on the level of political, social, technical and economical. But, black money becomes an eclipse or obstacle in the way of proper development. In 2007, around 2699 Swiss accounts of HSBC was leaked in which 1668 accounts belongs to an Indians in which more than 25,420 billion rupees assets are deposited. It shows that how much corruption encompassed in our legislative, executive and also in judiciary systems. This is not only our problem but the whole world is battling against it. So, all together, are involved in this war. And it cannot be exaggeration that they handle it very effectively and somewhat, they succeeded in it. If it is about India rules and regulations, then there are lot and lots of laws for this. But still it is exist and most surprising thing is, how our finance controlling machineries are so helpless that they are almost failed to control it? If anyone withdrawal a single penny to their bank account, the bank kept detail of it, then why they are fail to trace the transaction of million and billion of money? In this research paper, researcher focuses on the reason of such failure and also focus on the rule and regulation which already available and how can tighten it to control more effectively over the black money? Keywords: Black Money, Unaccounted Money, Financial Control, Legal Control, Law Introduction । 1 न न न न ॥ These lines is derived from Chanakya‟s Arthshastra and the meaning of this Shlok is, it is possible that the motion and direction of the flying birds can be describe, but it is not possible to measure the depth of the mind and thought of the official that whether he will misuse or steal the wealth of the State or not. This lines clarifying that the corruption also occurs in our society from the beginning of human civilisation and remedies were also available. Chanakya was the one of the most prominent scholar of this world his lesson and advice still applied. He has described lots of things about corruption, which is proving to be true in today‟s time too. He also explained about the provision and procedure of the punishment related to accuse of corruption and cheating to the Crown. This procedure and punishment was so certain that any person think twice before committing crime like this. But, in today‟s world the fear of punishment almost lost, people are committing such offense, but still do not get caught. Now, stashing money which was earning through dishonestly is known as „Black Money‟. In India, black money refers to the unaccounted money or amount earned by black marketing or through dishonest means, on which the people does not paid taxes to the Government. Nobody mentioned the amount of the black money, which is deposited in the foreign banks or stashed anywhere. Actually, the problem of black money in our country is like termites, which destroy our economy faster in comparison to any other issues. It holds the status of parallel economy or also known as grey economy. The reason behind this situation is corruption. Politicians, bureaucrats, governmental or non- governmental professionals others apart of it, from hierarchy to peon all are involve in corruption in our country. These people are in the root of the black money. In 2012, Director of Central Bureau of Investigation said that approx $500 billion money of India is deposited in foreign banks by illegal means,2 which was clarify by contemporaneous Government that it is estimated amount of money which is funded by wrong doer not officially announced by Government.3 Put a glance on those figures, in which it has been reported that how much money has gone to the scam after that independence of Indian. Every political party said during their election campaign that they will do this and that to remove black money problem and they will bring back each and every single penny of the nation. India is ranked 16th in the list of 200 nation, who have the bank account in Swiss bank. This list was issued by the International Consortium of investigative Journalist (ICIJ). India hold 16th position with 1668 account in Swiss bank 1 Chanakya, Translated by Professor Indra, Kautilya Arthshastra 46, (Rajpal and Sons, Delhi, 2009, VII Edition 2015) 2PTI, “Black money: Indian have stashed over $ 500bn in Banks abroad, says CBI”. The Times of India, Available On: https://timesofindia.indiatimes.com/india/Black-money-Indians-have-stashed-over-500bn-in-banks-abroad-says- CBI/articleshow/11871624.cms, (Last Visited On: November 21, 2017) 3 PTI, “White paper on black money likely to be tabled in Budget Session”, Business Line, The Hindu, New Delhi, Available On: https://www.thehindubusinessline.com/economy/white-paper-on-black-money-likely-to-be-tabled-in-budget-session/article23068535.ece, (Last Visited On: November 21, 2017) JETIR1810089 Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org 488 © 2018 JETIR October 2018, Volume 5, Issue 10 www.jetir.org (ISSN-2349-5162) and according to a report, in these accounts approximately 25, 420 billion rupees assets is deposited. Think about it, that how this amount can change the picture of our country? In the year 2014, BJP got absolute majority under the leadership of Narendra Modi, they promised to whole nation that they will curb black money and bring back the money which has been kept hidden outside the country and will bring development to the country. He accepted that, the unemployment of the country would end only when the country would end corruption. One major contribution of Prime Minister, for which India will remember him, was demonetisation, a bold step taken by him to curb black money, especially those amounts, which was hidden by the politicians and bureaucrats. If, the money which was lost in the scams and scandals since independence of India has been added, then it would be such amount, which is sufficient to develop India as super power. Historical Background Behind everything there is a history. Just like this, black money is not created over a night. Its evidence is also present in our ancient time. In the Era of Chanakya, Kalhan, Ksemendra etc, corruption is also existed that‟s why these prominent persons of their era also mentioned the term corruption and remedies in their books. They did not use the word black money, but they described the similar situation that is corruption. It estimated that around 350 to 283 BC Chanakya, a renowned and learned person, also the founder of Mauryan Dynasty as well as chief advisor of Emperor Chandragupta Maurya and Bindusara Maurya. He wrote so many books like Arthshastra, Chanakya Neeti etc.4 According to him in Arthshastra,‟ it is almost impossible to examine that a fish, which is moving under the water are drinking or not drinking water. So, the Government servant employed in the Government work cannot be found out that while his service, he takes money themselves.5 According to Kalhan that corrupt people should not worthy for forgiveness. They must have punished hard. He strictly condemns the corrupt Government officer and politician in his era and suggested the King to stay away and alert to that kind of people. As same as these two prominent writers, philosophers, poet and writer Ksemendra6 also criticised hardly to those people who are involve in corruption. In his famous book, Ksemendra wrote that any person either he is courtier or priest or any general public they must be immediately terminated as well as punished by King. He said that bribery and corruption are spreading like epidemic disease.7 Only bribery or corruption is not the reason behind the money and power related crime another one was embezzlement. According to Kautilya (Chanakya), there are several ways (he listed forty) through which officers specially treasury and financial officer can embezzled in his time, like Vyavahara (trading), Upbhogya (embezzlement), Pratibandha (ban) etc.8 It shows that corruption is not the problem which rose suddenly but it was exist from the beginning, but it was not spread on large scale like today, because of the strict action taken by the King, was so hard in compare of today. It is mentioned in our history that in the ancient India there are so many punishment was available for those person, who was found guilty for corruption. The mode of punishment was imprisonment, distrainment of property, exile and death sentence.9 Punishment for corruption in ancient India was very stick, for the mismanagement in the maintenance of account; it was ten times of the amount which missed as a fine. Similarly, if the employee came with proper report and account officer was not ready to audit then he (account officer) was punished with the penalty.