Money Laundering
It suddenly got me thinking that there is potentially a huge, attractive haven for money laundering practices in India. They thrive on inefficient procedural and regulatory machine.
The corporatized mafia underworld is quite advanced and organized in India, as is evident in some recent movies (Satya, Company, James, 'D' Company, etc.). In one instance, I was mildly shaken when I saw Satya being offered a place to stay after he gets 'enrolled' into the mafia organization.
For these 'companies', funds are procured (honoring 'contracts'), costs are incurred (hiring gundas), and profits are generated.
To exist in the context of the Indian regulation, these companies must brainstorm on how to launder money that they have earned through their various perpetrations. And they must be quite innovative in this approach, dynamically looking for different ways. They must always stay ahead of the regulators and monitors who are always trying to recover the criminal earnings.
One obvious solution is to launder it in the Bollywood industry. Picture this- a mafia organization produces a 3rd-rate, flesh-oriented movie, which cost 10 crores indian rupees. However, the real cost of the movie is only 0.5 crores. The organization hides 9.5 crores as a cost in fictitious identities in payrolls and contracts and shows false invoices. Therefore, even if the sales from the production breaks even with the cost, the organization has created a cost-free platform where it can launder 10 crores of money. The cost can be curtailed even less if the script is copied from Hollywood, and the song tunes are copied from tapping into the music reserves of the neighboring countries, or into old hindi songs. Now, that's an impossible return on investment in the legal scenario!
Maybe that's why actors like Salman Khan and Sanjay Dutt have close ties with the Indian underworld.
Another industry money launderers can parasite into is the rapidly burgeoning Indian entertainment industry (music, television). I mean, even the sky poses no limit anymore.
Am I right? Any viewpoints?
The corporatized mafia underworld is quite advanced and organized in India, as is evident in some recent movies (Satya, Company, James, 'D' Company, etc.). In one instance, I was mildly shaken when I saw Satya being offered a place to stay after he gets 'enrolled' into the mafia organization.
For these 'companies', funds are procured (honoring 'contracts'), costs are incurred (hiring gundas), and profits are generated.
To exist in the context of the Indian regulation, these companies must brainstorm on how to launder money that they have earned through their various perpetrations. And they must be quite innovative in this approach, dynamically looking for different ways. They must always stay ahead of the regulators and monitors who are always trying to recover the criminal earnings.
One obvious solution is to launder it in the Bollywood industry. Picture this- a mafia organization produces a 3rd-rate, flesh-oriented movie, which cost 10 crores indian rupees. However, the real cost of the movie is only 0.5 crores. The organization hides 9.5 crores as a cost in fictitious identities in payrolls and contracts and shows false invoices. Therefore, even if the sales from the production breaks even with the cost, the organization has created a cost-free platform where it can launder 10 crores of money. The cost can be curtailed even less if the script is copied from Hollywood, and the song tunes are copied from tapping into the music reserves of the neighboring countries, or into old hindi songs. Now, that's an impossible return on investment in the legal scenario!
Maybe that's why actors like Salman Khan and Sanjay Dutt have close ties with the Indian underworld.
Another industry money launderers can parasite into is the rapidly burgeoning Indian entertainment industry (music, television). I mean, even the sky poses no limit anymore.
Am I right? Any viewpoints?
posted by Milan at 10:35 PM
1 Comments:
you're always rite. of course.
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