BLACK MONEY AND IMPACT ON SOCIETY

Inflation and black money is in the form of parallel economy. The eradication of black money for a viable
economy of the Country is required for a healthy structure on all its front. The factors responsible for the
generation of black money are required to be spotted just to provide a curve over the nefarious activities
of the politicians and other bureaucrats in the society which is responsible for compelling the 60% of the
population to live below a poverty line. The judicial institutions has partly realised the ideals of the
constitution to develop through judicial activism in the form of a revolution for providing a check over the
reprehensible conduct of the people to accumulating enormous well through any means. "Fair or Foul" at
the cost of Nation. Price rise to the fantastic levels and velocity or liquidity of money circulation became
enormous. One of the main feature of inflation is that money looses its value. This is virtually in
confrontation with the aimed social objectives of legitimate expectations of the citizens.
The factors responsible for the generation of the black money: (a) Divergence between acceptable rate of
return and legally permissible rate of return. (b) Consequences of controls, licensing system, quotas,
permits of commodities. In effective enforcement of tax laws like income-Tax. Wealth Tax, Estate Duty,
Sale Tax, Stamp Duty, Excise Duty, Octrol Duties etc. (d) A considerable part of black money has
encourages diversification of resources in the purchase of real state estate and investment of such money
in constructing "Luxury Houses". Precious stones, jewellery and other venerable land situated in posh
society. (e) Discretionary powers wasted in the ministers. (f) Fear of laws of power by our Bureaucrats. (g)
Un-cordinate response of the public to provide a check over such activities of their representative through
mandate in the elections and in effective judicial accountability due to the non-introduction of the
terminology "Due process of Law" instead of procedure establish under law. The quantum of black money
consequent upon by the method of tax evasion, tax concealment, smuggling in imports & exports,
production of elicit commodities, artificial escalation or the prices, has resulted into part it away to the
estate for the purpose social welfare. The estimated income on which the tax has not been paid would
probably be more than 7200 crores according to the estimated data’s. Thus black money is very important
route cause of urban value which deprives the Government its legitimate dues by way of taxes to the
exchequer and induces dishonesty in the individuals trying to get more & more accommodation beyond
his means. Transactions involved and element of black money. No individual posses adequate white
account of money to buy a flat, thus this has ultimately resultant to the creation of black money as the
parallel economy in the nation. The idea of inflation accounting mooted during the 2nd world war which
became the topic of active discussion and ultimately attained momentum and due to the rapid universal
inflation is persisting upon as a major problem in the country which has the effect of the almost crippling
the entire economic structure of society in all sphere. Inflation and black money has become menace to
Indian Society and its economic structure in all its spheres. It has become necessary to have a rethinking
in all the monetary polities of the Government and their administration in all sectors as to how incorporate
the effect of inflation accounting to eradicate black money from the society. This requires a strong
Government and a high morality in living pattern of society. It needs fighting with all statutory powers
wasted in Government. Inflationary tendencies have to be contained within a tolerable limits Government
expert economics and planners with eminent public men requires the determination of inflationary trends
which is galloping in nature and very difficult being tricky and onerous, to tackle by ordinary process.
Time is free-fold present: as we experience it the past as the present memory and future as a present
expectation .The expectations can not be the same and as anticipation. It is different from a wish, a desire
or a hope nor can it amount to claim or demand on ground of a right. A pious hope even leading to a
moral obligation can not amount to a legitimate expectation in the strict sense. The protection of such
legitimate expectation does not require the fulfilment of the expectation where an over riding public
interests require otherwise. Thus even if substantive production of such expectation is contemplated that
does not grant and absolute right to a particular person. the protection is limited to the extent of judicial
review. To strike down the expectation of an individual adrift to the pragmatism. Thus millions of people
belonging to the deprived and venerable section of the humanity were looking to the courts for improving
their life conditions and making back human rights meaningful for them. The Supreme Court acted as an
instrument of status quo-upholding the traditions of Anglo-Saxon jurisprudence and resisting radical
innovations in the use of the judicial power to promote social justice under the republican constitution till
early 1970 with some Hon’ble expectations, but in the light of a social economic philosophy alien to our
freedom movement and aspiration of the liberated people, the Apex Court has started a giving importance
to the rule of Law with "tryst with destiny". The outstanding judicial activism in the quest for social justice
came by the enormous contribution of Hon’ble Supreme Court in the recent years. The use of new found
judicial power in the service of "WE THE PEOPLE OF INDIA" who has often being represented in the
judicial forum have always been at the receiving end of mal-administration and exploitation.
This is a constitutional right of every accused person who is unable to engage a lawyer and secure legal
services on account of reasons such as poverty, indigence or incommunicado situation and the state is
under a mandate to provide a lawyer to an accused person if the circumstances of the case and the need
of justice so require, provided of course the accused person does not object to the provision of such
lawyer (1980) 1 SCC 98.
It will be instructive to sun up this discourse with the observation of Chief Justice Bhagwati in Suk Das. It
is common knowledge that 70 percent of the people living in rural areas are illiterate and even more than
that percentage of the people are not aware of the rights conferred upon them by law. Even literate
people do not know what are their rights and entitlements under the law. It is this absence of legal
awareness which is responsible for the deception, exploitation and deprivation of rights and benefits from
which the poor suffer in this land. Their legal needs always stand to become crisis-oriented because their
ignorance prevents them from anticipating legal troubles and approaching a lawyer for consultation and
advice in time and their poverty magnifies the impact of the legal trouble and difficulties when they come.
More over, because of their ignorance and illiteracy, they cannot become self-reliant; they cannot even
help themselves. The law ceases to be their protector because they do not know that they are entitled to
the protection of the law and they can avail of the legal service programme for putting an end to their
exploitation and winning their rights. The result is that poverty becomes with them a condition of total
helplessness. This miserable condition in which the poor find themselves can be added to situations
(1986) 2 SCC 401).
Extant by creating legal awareness amongst the poor. That is why it has always been recognised as one
of the principal items of the programme of the legal aid movement in the country to promote legal literacy.
It would in these circumstances make a mockery of legal aid it were to be left to a poor, ignorant and
illiterate accused to ask for free legal service. This is the reason why we ruled in Khatri II case that the
Magistrate nor the sessions judge before whom an accused appears must be held to be under an
obligations to inform the accuses that if he is unable to engage the services of a lawyer on account of
poverty or indigence, he is entitled to obtain free legal services at the cost of the state. We also gave a
general direction to every State in the Country to make provision for grant of free legal services to an
accused who is unable to engage to a lawyer on account of reasons such as poverty, indigence or
incommunicado situations (1986 2 SCC 401).
In the judges Transfer Case, justice Bhagwati declared that law in the following terms: where a legal
wrong or a legal injury in caused to a person of violation of any constitutional or legal right….. and such
person or determinate class of persons is by reason of poverty, helplessness or disability or socially or
economically disadvantaged position, unable to approach the court for relief, any member of the public
can maintain an application for an appropriate direction, order or writ in the High Court under Article 226
and in case of breach of any fundamental right of such person or determinate class of persons, in the
Supreme Court under Article 32 seeking judicial redress for the legal wrong or injury caused to such
person or determinate class of persons. (1981) Supp. SCC 87).
Fundamental rights particularly in relation to the poor and disabled do require new remedies for their
effective enforcement. Creation of new remedies is interpreted as part of the judicial function in so far as
the responsibility for enforcement of fundamental rights is a charge on the Supreme Court. The alienation
and ivory tower image of the judiciary, sometimes justified in the name of "independence", got a severe
jolt by the socio-political activism and public self-criticism of judges of the Apex Court led by justice
Bhagwati. The search for solutions in the quest for justice is an eternal one in which success and failure
are always relative and never complete.
Absolute power is tyranny where as absolute democracy is tyranny and anarchy both. The political groups
of revolutionary significance, which present have never imperilled the fundamentals of duty and
obedience, the bases of social discipline, in short the most fundamental forces of social and political
cohesion. Legislature or the executive ha e created situations which remain sometimes grimly un
reconciled, political forces have pushed on to advance their own schemes upon the ruins of the rest.
A party in power provokes by its policies a situation in which the economic stability of the society is
threatened or where constitutional rules appear as the mere manifestations of the interest of the dominant
power in the legislative. The normative and factual aspects of the legal order condition each other and
interact closely with one another. A legal system acts as a mediator between social ideals and social
reality. In the political and social life of a community, it becomes an effective moulding force for actual
human behaviours in the process of balancing individual rights and the common good.