Prime Minister Narendra Modi made the historic announcement to pull off Rs.1000 and Rs.500 notes from circulation effective tonight. While skeptics are screaming their lungs out how it will cause inconvenience to the common man, we cannot help but smile at the sheer brilliance of this move. The late night announcement not only came as a surprise but people with black money are left clueless as to how to use notes that have been stashed away for years.
As black money hoarders are really creative at what they do, we’re sure they will figure out a way out of this but tonight let’s be happy we were able to witness this historic move by a Prime Minister who’s not afraid to act!
Here are 10 different types of people who will be worst affected by Modi’s black money surgical strike. We sincerely hope you’re not one of them!
It’s no open secret that political parties and politicians will be massively hit by this move. Before elections when these parties used to bring in sacks full of black money to distribute in exchange for votes, the process was simple. But now the money stored for such purposes have lost their value overnight. How will they convert all that money into denominations when the bank accepts only limited currency for exchange? Truly screwed!
2. Land Mafia
Everyone knows that Indian real estate prices are overly inflated. Part of the problem has been black money which is used during transactions to show lower property value but actually higher prices leading to increased rent. This smart move by Mr. Narendra Modi will make land mafia run like their pants are on fire!
3. Movie Producers & Stars
As in any industry that deals with large sums of money, the movie industry has its use for black money. Black money is used for suppression of receipts from movies using ancillary sources, inflation of expenses and a huge amount of out-of-books payments/receipts and profits from the success of the movie go back into the system. It has been known that some movie stars get half payment via banks and rest is given as cash to avoid taxes. This whole practice can continue, but what about the money that is already in their lockers?
4. Hawala Dealers
Hawala is a popular and informal value transfer system based on the performance and honour of a huge network of money brokers. They are primarily used to send money from the country and most of their transactions are done through black money. India and middle-east can be called the hub of hawala transactions, but with the Rs.1000/500 notes ceasing to be valid currency many hawala dealers will be in deep trouble.
5. Fake Currency Dealers
Over the past many years thousands of crores worth fake currency has been printed and circulated in India. These fake notes have become so perfect that it was almost indistinguishable from real notes. As all Rs.1000/500 notes ceased to be legal tender, fake currency dealers will be hit hard!
6. Sports Betting
Sports betting is illegal in India yet a multi-crore business. These channels accept and use only black money as the business itself is illegal and payments are strictly cash.
7. Terrorist Organizations
Terrorist organizations need huge supply of money to operate in any geography. They rely on constant supply of black money from various sources to pay for weapons, personnel, and logistics. As of now, there must be crores worth notes with these organizations and come tomorrow, it has become worthless!
8. Fake Trusts and Charity
Although a noble cause, charity in India is misused to the core to avoid paying taxes. There are hundreds of thousands of fake trusts and charitable organizations that exist for the sole purpose of swindling money and converting black money into white. What will happen to their cash reserves will be interesting.
9. Rich Agricultural Land Owners
Agricultural income is a legal loophole through which huge amount of black money is converted into white. While the honest farmer tills the land and barely makes enough to feed his family rich agricultural land owners make a mockery out of the system and stash money away. There have been stories of extremely wealthy “farmers” giving direct support to political parties to acquire more land and continue their swindling.
10. Large Educational Institutions
Most educational institutions in India ask for donations which is usually paid as hard cash by parents. These institutions hardly provide any record for such transactions and there should be hundreds of crores worth currency in store and tomorrow all that money just became worthless.
This is the first time since Indian independence black money hoarders in the country have been badly affected on such a large scale. Modi’s message is clear, “Checkmate black money hoarders, checkmate!”