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Nagpur CAs give an insight into Modi government’s bold decision of demonetisation

Modi government's decision of demonetisation
CA TS Rawal

At a panel discussion at the Nagpur branch of The Institute of Chartered Accountants of India, noted Nagpur chartered accountants – T S Rawal and Kailash Jogani – along with other chartered accountants spoke about Prime Minister Narendra Modi’s decision of doing away with Rs 500 and Rs 1000 currency notes on Tuesday, November 8. These chartered accountants gave an insight, to the people present, into Modi government’s decision of demonetisation and also spoke about the possible effects of the same on the Indian economy.

?People with a lot of black money (especially politicians) are going to be affected to a certain extent. There’s a possibility of infusing most of the black money into mainstream economy.

?Politicians hold a lot of money. A lot of black money floats in the market during elections. Raghuram Rajan during 2014 elections had said that the cash to GDP ratio was suddenly very high. This is going to impact the UP, Punjab and Goa elections.

?Politicians won’t be able to splurge money during elections by providing alcohol and bribe to potential voters.

?Middle class people or genuine taxpayers who are worried about the scrapping of denominations should relax. The impact is only on certain sections of the society.

?In one stroke, the people who had been encouraging fake currency are suddenly out of business as they don’t have any means at the moment to make similar currency notes. But, we can’t ignore the fact that fake currency, which is already infused in the system, still exists.

?The new currency that would be floated in the market would have higher security features, unlike the previous currencies.

?Theoretically speaking, nobodys losing money due to this scheme. But, on a practical note, we know that 30-40% of the money would still go out of the system and evaporate.

?Earlier, demonetisation took place in the year 1938 where Rs 10,000s note was scrapped. Then, 39 years later in 1977, again demonetisation took place. Again after 39 years (in 2016), the same has happened.

?In the long run, the same people who stored a huge stock of money in the form of cash are the people who buy gold. At the moment, the government is robbing the rich. They are taking money away from filthy rich people. So, this scheme is actually a de-motivator to buy gold.

?The money that is used for buying luxury cars, gold, foreign travel and other premium high-end materials, is being taken away to a certain extent in the short run from the affluent section.

?The best part is that the money is being removed from the system before the implementation of the GST (Goods and Services Tax).

?Money laundering is a bigger concern over tax evasion today. Terrorists are being funded with huge amounts (back money). Demonetisation will also discourage illegal trading of arms and drug peddling.

?This scheme was supposed to be introduced in February 2016 but due to some reasons, it got delayed till November 2016.

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Nagpur News

Rushikesh Lohit reigns as numero uno in Rapid Championship; Shaunak Badole tops Nagpur Blitz Championship

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Radhika Dhawad | Nagpur

Rushikesh Lohit won the Nagpur District Rapid Championship while Shaunak Badole won the Nagpur District Blitz Chess Championship.

Rushikesh Lohit won the Nagpur District Rapid Championship while Shaunak Badole won the Nagpur District Blitz Chess Championship held at Vivekanand Hall, Shraddha House, Kingsway, Near Kasturchand Park in Nagpur.

The championship was organised  by Chess Association Nagpur in association with Kalpana Prakash Welfare Foundation and G.H.Raisoni Sports and Cultural Foundation. Muktanand Pendsey finished second in the both Rapid and Blitz Championship. Rushikesh Lohit and Muktanand Pendsey will represent Nagpur in the Rapid Championship and Shaunak and Muktanand will represent Nagpur District in the Maharashtra State Blitz Championship.

Mangesh Kashikar, Secretary, Nagpur District Badminton Association and Vice President of Maharashtra Badminton Association was the Chief Guest who distributed the prizes. Bhushan Shriwas, Secretary, CAN and Kalpana Prakash Welfare Foundation, SS.Soman, Working President, CAN and Amrish Joshi, Chief Arbiter were present on the occasion.

The Top two finishers of Rapid and Blitz Championship were awarded Trophies whereas the players finishing from 3rd to 10th place were awarded Medals in both the championship. In addition to the main prizes, age group prizes were also distributed to top two finishers in each group.

The championship was conducted by Chief Arbiter Amrish Joshi assisted by SNA Swati Kumbhalkar, SNA Amit Tembhurne, Shyam Agrawal, Prayas Amabde and Prathamesh Machave.

Also read: Wine connoisseurs come together at Wine and Food Festival 2022 in Nagpur

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Nagpur News

Wine connoisseurs come together at Wine and Food Festival 2022 in Nagpur

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Avani Arya | Photographer : Nitin Mankar | Nagpur

Wine connoisseurs came together at Wine and Food Festival 2022 in Nagpur, which took place on December 3 and 4. This was the ninth edition. It was hosted by Nagpur Wine Club, and was held at Bhagwati Lawn. The festival was open to all, where people enjoyed wine tasting and lip-smacking food by The Breakfast Story, Nagpur. Nation Next brings you some exclusive photos from the event.

Also Read: I-Clean Nagpur beautifies 232nd spot, decorates walls with Warli designs

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Nagpur News

‘Maharashtra government responsive towards issues of traders,’ assures Eknath Shinde

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Nation Next Newsroom | Nagpur
Maharashtra Chief Minister Eknath Shinde said Maharashtra government was responsive towards issues of traders.

L to R: Eknath Shinde and Dipen Agrawal

At the outset Dr Dipen Agrawal, President of Chamber of Associations of Maharashtra Industry and Trade (CAMIT) welcomed Chief Minister, Eknath Shinde with a floral bouquet in prominent presence of Krupal Tumane MP, Ramtek and submitted memorandums highlighting harassment of traders by Local Body Tax department across the state under the garb of LBT Assessment. He also appraised about the issue of Nagpur Metropolitan Region Development Authority (NMRDA) and he further brought to the notice of CM about the exorbitant hike in rent by Corporations & their coercive action on traders.

Dr Agrawal on behalf of traders of Maharashtra expressed his gratitude towards Eknath Shinde about Local Body Tax being abolished (LBT with effect from August 2015. Though LBT was abolished in 2015 but the ghost of LBT is haunting traders now and then, department in routine are passing ex-party (best judgement) orders raising inflated and fictitious tax demands and using them to justify continuance of LBT Department. Records from LBT Appellate Authority will evidence the correctness of this statement. He also informed that LBT Department in various Corporation indulged in issuing back dated assessment orders for previous financial years. He appealed to CM that the issue requires his urgent attention, intervention and directions for closure of LBT Department in all Municipal Corporations with immediate effect to ensure ease of doing business in the state and save traders from unnecessary harassment.

Eknath Shinde acknowledged that he is aware of the issue. He assured to discuss the issue in cabinet and ensure that the issue is addressed on priority basis.

Dr Dipen Agrawal informed CM, that since last few years Municipal Corporations across the state stopped renewing lease/license of property leased/licensed by them. In 2019 the state government came up with Maharashtra Municipal Corporations (Renewal of Lease or Transfer of Immovable Property) Rules, 2019. These Rules were strongly opposed by trade associations. However, after its implementation the litigation between the lessee/tenants and Corporations went to court added Dr Agrawal. 

After great persuasion by the then LOP, you as minister for UDD agreed to the demand to put the notification dated 13/09/2019 in abeyance and review the exorbitant annual rent at 8% property value and fix the annual rent acceptable to all stakeholders. 

After the issue was raised on the floor of the house, the State government stayed the operation of notification dated 13/09/2019 and constituted a committee of government officers to review and fix fresh rent. When we approached few members of the committee to submit our suggestions’ we learnt that the committee is of opinion that the notification in question does not apply to the Licensee holder. 

Hence, in the background of above facts and circumstances Agrawal requested CM, to intervene and have the pending notification issued and fix the rent at 0.5% of Ready Reckoner value for residential & 1% for commercial lease holder Galedharaks . He further requested to notify similar rules and frame a single policy for the Licensee Galedharaks across the state and in cases where shop/otta is licensed by Corporation the annual rent be fixed at the rate of 2% of value as per ready reckoner and as the lease/license fee will be calculated on ready reckoner the clause of periodic increase dose not survive also the lease / license should be transferable and transfer fee to be charged equal to one month rent/fee for transfer within blood relation and equal to three months’ rent/fee for transfer outside blood relation and the agreed new lease rent/license fee to be made applicable prospectively and not retrospectively.

Eknath Shinde said that the issue is under active consideration and assured to look into the matter and discuss with Chief Minister, Eknath Shinde to resolve the issue to the satisfaction of all stakeholders.

Dr. Dipen Agrawal further informed Eknath Shinde that the first notification declared 5 Km area touching outer limits of Nagpur Municipal Corporation (NMC) as Nagpur Metro Region issued in 1995 which was thereafter increased time to time to present limit of 25 Km from boundary of NMC. In 2010 Nagpur Improvement Trust (NIT) was entrusted with responsibility of Special Planning Authority for Nagpur Metro Region the limits. In 2012 NIT passed resolution for preparing development plan for Metro Region and published Draft Development Plan (2012-2032) calling objection and suggestions, in the year 2015. In 2017 Nagpur Metropolitan Region Development Authority (NMRDA) was established. In 2018 Final Development Plan (2012-2032) for Nagpur Metro Region was sanctioned and notified. NMRDA action is based on following three main reasons:- 

1) Side margins are not as per 2012-2032 DCR; Dr. Agrawal highlighted that majority of units i.e., 59% were established before the 2012-NIT resolution and 85% were established before the first publication of 2015-Draft Development Plan (2012-2032), and pointed out that it is unjust on part of NMRDA to expect these units to maintain the margins prescribed in DCR (2012-32).

2) Building plan/ Non-agriculture use is not sanctioned by competent authority; Dr. Agrawal pointed out that under MRTP Act the power to change use of land is can be delegated to Thasildar and powers to authorise development to Gram Panchayat concerned. Invoking these powers Thasildar was approving and sanctioning NA Permissions and Gram Panchayat was sanctioning Building Plans. The units in good faith have taken these permissions from them and further submitted to other Government agencies.

3) Land earmarked for purpose other than industrial/commercial; MRTP Act provides for survey and preparing ‘existing-land-use’ map by Planning Authority after its declaration of intention of preparing a Development Plan. It is surprising to note that the area of many units established prior to declaration of intention of preparing Development Plan is not classified under industrial/commercial zone.

Dr. Dipen Agrawal humbly requested CM to grant an Amnesty Scheme for regularization wherein interest & penalty would be waived and also direct the authorities to notify that the MSME units established prior to 06/01/2018 (the date on which the DCR 2012-2032 for Nagpur Metropolitan Region was notified) should be saved from the provisions of the said DCR.

Eknath Shinde said that the government is sized with issue and assured to resolve the matter in the best interest of all stakeholders.

Dr. Dipen Agrawal, President-CAMIT on behalf of business community of the state expressed his gratitude towards Eknath Shinde, Chief Minister, Krupal Tumane, Member of Parliament, Ramtek for being sensitive towards the issues of trade & industry of the state.

Also read: I-Clean Nagpur beautifies 232nd spot, decorates walls with Warli designs

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