The PM’s new hit-list aimed at people with benami properties is commendable. A benami property law came into being in 1988, but it was not given teeth. It is more than obvious that a huge chunk of black money has been channelled into the real estate and property space. The Government’s clarification that there is no move to impose long-term capital gains tax on share transactions should make traders breathe easy.
NJ Ravi Chander
Real face of inflation
Demonetisation amounts to sucking up of liquidity and hence the inflation blip due to shortage of cash is not going to last long. Once the effects of demonetisation are no longer felt, that’s when the real face of inflation shall be known. This means at least after one more quarter. In case GST is rolled over from April 2017 there is a likelihood that inflation may inch up.
RK Arya
Faridabad, Haryana
Plight of bankers
The demonetisation process has cast a burden on the function and profitability of banks already groaning under the weight of NPAs. The focus of bankers was on SBNs and making arrangements for issuable currencies, and complying with the never-ending guidelines from the Centre and the RBI. Barring some aberrations, bankers have been disciplined and dedicated, and borne the brunt of customers’ anger.
Bankers were caught unawares and were overburdened. With another quarter coming to a close, banks have not moved positively in business development. Ultimately their bottom line will take a hit. All banks are public listed entities and it is only their bottomline that is going to make the headlines. Share holders will look for better performance.
It is strange that none of the bankers except the SBI chairperson has given the bankers’ opinion, apart from the trade unions. Many offering views choose to remain anonymous. Bankers speaking up on the impact of demonetisation which will help us understand the positive impacts and the difficulties they face.
S Veeraraghavan
Coimbatore
Detention policy
This refers to the Centre’s decision to have detention from class 5 and not from class 8 as things stand today. The argument that this will make students serious and sincere in studies is only partially correct. The onus of making students interested in studies rests with the schools and teachers.
Of course, educated parents can lend a helping hand to an extent.
It is imperative that teachers (especially, nursery and primary) strain every nerve to make children strong in fundamentals and ensure that every child qualifies for the higher class on merit. Also, the benefit of doubt should go to students in the detention policy. For instance, a re-exam for detained students can be administered in the first or second week of April. This will not only help them qualify but also make them serious in studies. Education policymakers must not be oblivious to the fact that the detention policy may increase the number of drop-outs and thereby the percentage of child labour and even delinquents/criminals.
S Ramakrishnasayee
Ranipet, Tamil Nadu
Convenient conduit
This refers to ‘Yes to yes, no to no’ (Below the Line, December 26). The Election Commission’s plea to the Government to ban anonymous contributions over ₹2,000 to political outfits is a determined bid to put an embargo on black money hoarders who use it as a convenient conduit to park ill-gotten money.
With only 400 out of the 1900-odd strong registered political parties in our country having contested elections, the others are dormant but not dead. There is every possibility of non-participating and non-contesting parties being used by vested interests to get immunity from the income tax authorities.
In the event of the EC’s request being acceded to by the law ministry, a foolproof mechanism needs to be put in place to check the anonymous contributions flowing into the coffers of political parties.
HP Murali
Bengaluru
LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.