PM Modi GST and Demonitisation discussion at an event of Charted Accountants


Prime Minister Narendra Modi on Saturday said the government has identified over 3 lakh companies for indulging in dubious transactions after last year’s demonetisation drive.

An additional 37,000 plus shell companies involved in converting black money into white have also been traced, he said.

Hailing the note ban as a move against black money and corruption, he said data mining process to scan the record of money deposited after demonetisation was under way and promised action against defaulters with out thinking about its political implication. “Initial probe has put three lakh companies under scanner,” Modi said at an event of chartered accountants.

“More revelations are expected,” he added. Modi also launched a course on Goods and Services Tax for the CAs, which came into force on Saturday.

Last year on November 8, the Modi government had recalled currency notes of ~500 and ~1,000, a move that triggered a major upheaval in the Indian market, prompting negative impact on the economy.

While the government is yet to reveal the value of the high currency notes deposited in the banks, the revelation by the Prime Minister was an effort to silence those who questioned the note ban decision.

“While everyone was awaiting the fate of GST, the government in a stroke deregistered 1 lakh companies,” Modi said. “Those who have looted the poor, will have to return to them.”

The PM rued that a section of the CAs helped their clients in a wrong way after demonetisation and asked the Institute of Chartered Accountants of India (ICAI), the apex body of CAs in India, to take action against them. “Someone must have helped these looting companies. It’s your duty to identity and punish them,” he said.

In the last 11 years, he said action has been taken against only 25 CAs. “Do you believe only 25 CAs have done something wrong in last 11 years?There are 1,400 cases pending against the CAs. Isn’t this a matter of concern?” Modi asked.

Modi also said CAs should take a pledge to bring people in the tax bracket rather than boasting about the number of clients they have saved from paying taxes. The Prime Minister said only 32 lakh Indians declare an income of ~10 lakh and above. “Can you believe that there are only 32 lakh people with an income above 10 lakh?” Modi asked.

Modi termed the roll out of the GST as historic decision that will usher in a transparent and corruption-free government. Reiterating his commitment to fight against black money and corruption, the Prime Minister said the 45% decline in deposits by Indians in Swiss bank last year was the outcome of the steps taken by his government. Surprisingly, the amount had risen sharply in 2013, Modi said, referring to a period when the Congress-led UPA regime was in power.

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