Tag: thin air

Money De-laundering

A few months back I got my kitchen remodelled. It set me back by a couple of lakhs, and the guy who did the work for me insisted that I pay him fully in cash. I, who has had all cash inflows so far via bank transfers, was thus forced to withdraw (in several iterations) from the ATM perfectly white money and then hand it over to this guy and permanently convert it to black. Now that I think about it, I overpaid.

The key fact here is that people pay to get their money laundered. If you have Rs. 100 of unaccounted money in wads of cash, you are willing to give it to someone who puts Rs. 80 in your bank (the spread has been pulled out of thin air. Don’t go after me for that) and also some documentation to prove that you legally earned the Rs. 80.

So you have this bunch of people who want their money laundered. And then there are bank-only guys like me who sometimes have to produce wads of hard cash. Why isn’t there an exchange (illegal, of course, but who’s talking legality here? I’m only talking money) where money can be laundered and people with excess bank balances (and little hard cash) can be paid for it? For example, instead of paying Rs. 200000 in hard cash to my carpenter, I would have paid (say) Rs. 160000 to someone by cheque and got a receipt for it, and that person would have paid Rs. 200000 cash to my carpenter.

What does it say about the black economy that no such exchange exists? Does it mean that the market is skewed in a way that the demand for money laundering is much larger than its supply, because of which people who would otherwise have been intermediaries doing one side of the deal themselves? Or does an exchange like this actually exist but I’m not aware of it partly because it’s underground (for obvious legal reasons) and partly I’m seen as too small a fry to be accosted by the exchanges?

Next time I pay wads of hard cash, though, I’m going to try and see if I can get a discount.

Separation of Church and Estate

I’m talking about Sathya Sai Baba here (incidentally, in Kannada his name translates to “did you die? Die! Come, come!”), who recently “attained his own lotus feet”, to paraphrase what someone said on Twitter. Even Sachin Tendulkar’s prayers for his health didn’t help him, it seems.

So there are two sides to saibaba, and going forward it is important that the two be kept disjoint. On the one hand is the “NGO work” that his organization has undertaken – the super-specialty hospitals in Puttaparthi and Bangalore, the drinking water project they’ve implemented in Rayalseema, and the like. On the other is the spiritual side, where you have thousands of “devotees” (I once called my aunt “Sai baba’s follower” and she got offended saying “I’m a devotee, not a follower”) singing bhajan and going delirious when Sai Baba produced Caramilk toffees out of thin air and threw them into the crowd (a long time ago, I was one of them, jumping up and down to catch these toffees).

I guess efforts are on to find his “spiritual successor” (and I hope China doesn’t step in to prevent his reincarnation), and there is already reportedly a huge fight among his “close devotees” regarding control of his estate. The estate is huge, and is supposed to get lots of donations, a large part of which at least (it appears) has been deployed in developmental projects. It is important that these developmental projects continue, and to ensure that they’re not hijacked by “devotees” who want to pursue a different agenda, it’s important to spin off this side of the organization into a registered NGO – recognized and regulated by the government, providing tax exemption to donations, publishing accounts regularly, and the like. You know how common it is that “spiritual NGOs” are hijacked for purposes of money laundering.

I don’t care what happens to the rest of the organization – with the delirious “devotees” who sing bhajans and give “global” speeches” and start TV and radio stations. Perhaps it is important for it to also continue – for its presence will mean people continue to be attached to the baba, which could help in fundraising efforts for the NGO. I’m sure they’re going to find a spiritual successor, but it needs to be seen how many of the baba’s “devotees” remain devoted to this successor.

On an unrelated note, I see in the papers that the baba is going to be buried. I don’t know what the rules of the caste he was born into (Raju) is, but I suppose this is a tactic so that there is no mad fight for his ashes, the “holiest of the holy vibhutis”, in case he is cremated. Even then, I wouldn’t be surprised if his body gets exhumed by some overzealous “devotee” sooner or later. They need to dig deeper.