Black Money

Monday, October  25th

In my fog of forgetfulness, I failed to journal about my expedition into town with Sridhar last week. He had promised to take me to a local pool hall and on the day before the close of the retreat, we sauntered into Laxman Julha. Sridhar wanted to purchase some euros and I knew where to take him. We laughed at the irony of me having more knowledge of the area then he did as a native to the country. But, we are far from his home in Southern India and I am here in Rishikesh for a second time. We cross the bridge and enter the main through fare that leads to the gem store where currency is exchanged. I am certain that they will have euros, as I have learned that they are big in the business of money changing.

Only this morning Musette had been in the shop sipping chai, when a businessman walked in. In a hushed conversation he asked if he could purchase rupee with American dollars. With a nod the gem store owner invited the man to sit down, and the transaction began. Musette, informed me that the man proceeded to remove $50,000.00 dollars from his bag and handed the money over the counter. The gem merchant carefully checked each hundred dollar bill for authenticity, and once satisfied began to count out the corresponding value in rupee. All of this took place as Musette looked on. The money it transpired belonged to a local guru and the businessman was acting as his intermediary.

When I shared this story with Sridhar he laughed and said that this is known as “Black Money”. Money that is deliberately kept outside of the banking system so as to avoid paying taxes. He said that it is is a very common practice in India, and estimates that more than 70% of the population do not pay taxes. There is more money in circulation than first appears, and the gem stores merchants are the money handlers at the center of this exchange.

To purchase a one bedroom apartment in Delhi, which goes for $250,000.00, the seller fully expects the buyer to make a 50% down payment in “Black Money” to evade paying taxes on the full property value. I am stunned that people are able to amass this much in cash deposits and that property is so expensive here. Land, Sridhar informs me is even more astronomical. To purchase a plot in Delhi or Mumbai costs a minimum of $500.00 per square yard. There is then, this unofficial banking system, that is intrinsic to the economic structure, which operates with the full knowledge of the authorities.

Sridhar, is able to purchase euros at a competitive rate and is chuffed at having saved 'six hundred bucks' (rupee). With business complete, we strolled back over the bridge and head to the pool hall. It is actually a restaurant with a wonderful view overlooking the river, that has two snooker tables. I warn Sridhar that I have not played for several years and was likely to be a poor opponent. True to my word, I played abysmally!

Barely able to pocket any balls, I lose all four games. Yet, there had been a glimmer of hope in the final game, when I had only two balls left in play and victory seemed within reach. But it was not to be. It was predictably, a slaughter of the lambs! Sridhar, took my poor performance in good stride, and made every attempt to educate me on the rudiments of the game.

In consolation he bought me lunch, spending the money that he had saved on the euro exchange. Sridhar is a systems intelligence professional, who works for the banks tracking the individuals behind identity theft. He is employed by an American firm, and is very well compensated in dollars. Unlike many of his friends, who now live and work in the United States, he opted to remain in India. In this way he is able to maintain close ties with his family and still enjoy the privileges that come with earning a salary comparable to that of his peers in America.

The retreat is at a close and most have gone on to other destinations. A doctor, an advertising executive, a psychologist, a masseuse, a computer specialist, a businessman, a chemical engineer, an investor, yoga instructor and more. We had gathered from around the world to converge here in Rishiksh, each bound by our individual quest for meaning.