Saturday, August 17, 2019

Morality? A Rara Avis.

I am in the process of selling a flat in Gurgaon. As I told brokers and buyers that I wanted a 'full cheque' payment (My apologies to any foreign readers who may not understand what this means. What I am referring to is the Indian practice of taking part of the payment in cash, thereby avoiding tax) their expressions ranged from frank incredulity to pity. WHY would anyone want to pay a penny more tax than was absolutely necessary even if the process involves doing something blatantly illegal? Clearly, the process of defrauding the government was being blithely undertaken by all concerned, the government's tall claims of having reduced/eliminated 'black' money notwithstanding. It's a different matter that the colour of the 'black' money is now a bilious  pink, given the rather loathsome colour of the new Rs 2000 notes.

Recently, I needed to change the tyres on my car. The dealer offered me 3 alternatives for payment:
  1. Cash - no tax (GST) would be levied. On my asking what would happen to the warranty for the tyres as it would be an unrecorded purchase, the dealer reassured me. "Hum hain na sirji. Tusi nischint raho." Again, the flavour of this statement is typically North Indian. Full of nice sounding insincerity.  
  2. Cash or Cheque with GST. Here the cost was significantly higher due to the high rates that are applicable under the GST regime.
  3. Credit Card - Here an additional 2% would be levied on top of option 2 by the dealer to account for the credit card charges that he had to pay the card company. 
He was clearly disappointed and a bit contemptuous when I opted for 3. However I manged to mitigate my own stupidity by prevailing upon him to forgo the 2% credit card charge. A small victory indeed!

There are innumerable examples of the traffic police coming up with 'Good Driving Week' where they will challan you if your car crosses the stop line at a traffic light, or for over-speeding or a whole range of minor traffic offences. Once the week is over, it's business a usual with a quiet colloquy with the traffic cop and some money that solves all problems.

It is fair to say that there are some areas where such dishonesty has been reduced or eliminated. Railway reservations, driving licences, passports, etc, largely due to IT that has led to the elimination of touts and brokers. However, the Indian psyche seems to naturally gravitate towards the easy (and cheaper) way out.

So are we an immoral society? The short answer is "yes".

Politicians and Godmen never tire of extolling the virtues of our glorious past. We claim to have have invented virtually everything from aeroplanes to nuclear bombs and we have a monopoly on any intellectual or artistic activity. A truly prolific and talented people indeed! We can be justly proud of the Ramrajya in the past but spare a thought for our immoral present where 'subkuch chalta hai' and businessmen and others revel in the tax that they have evaded and the rules that they have bent!

I wonder when it became socially acceptable to entertain a black-marketer or tax evader in your drawing room. The only problem is that you may lose all your friends and acquaintances if you were to rigidly enforce this rule. Coming to think of it you may be barred entry into your own drawing room as well!

PS - I did finally manage to sell my flat on 'full cheque' payment. Looks like I'm not the only foolish fellow around!


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15 comments:

  1. So are we an immoral society? The short answer is "yes".
    So ONLY we are an immoral society? The short answer is "NO".
    So are all socities immoral ? The short answer is "HELL YES".

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    Replies
    1. Hmm. That sounds like a cop out. Semantics don't make a difference to the fact that India is a highly corrupt society.

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  2. [8/18, 12:01 PM] Rohtash Personal: Ironical....
    For a civilization that prides itself on the awareness of the true north ...

    Ye kab Hua ...Kaise hua ...guess that's another blog
    [8/18, 12:03 PM] Divyaroop Bhatnagar: Yup - it is. have been thinking about it. Why are we corrupt and more importantly what can we do about it provided we want to, of course!
    [8/18, 12:03 PM] Sidhant Khosla: It might be even worse than immorality. This society in general no longer perceives these action as immoral. The definition of “amoral” seems apt - “lacking a moral sense; unconcerned with the rightness or wrongness of something”
    [8/18, 12:03 PM] Divyaroop Bhatnagar: Sid that is very true. It's the new normal
    [8/18, 1:55 PM] Rahul Kansal: ‘Yes’, is right
    If one looks at Transparency Intl’s data on corruption levels of various countries, there is a clear inverse correlation with prosperity. The cleanest are Scandinavian countries, followed by other european states, USA, Australia etc. Sub saharan countries and other dirt poor states typically bring up the rear.
    The remarkable thing about India is there has been a further erosion of ethics over the past 30-40 years, despite a marked increase in prosperity. I recall the shame one went through in school when found cheating; today’s kids simply brazen it out. People don’t seem to feel at all embarassed when found lying. Etcetera 😒

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  3. The blog has generated a lot of debate on various whats app groups. Posting some of the comments here

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  4. [8/19, 7:49 AM] Neeta Krishna: Pervasiveness is key. 'We are like that only'
    Life is hard in India for most, so we (collective we) use shortcuts, save a bit of money, accept money for a vote etc etc etc. This becomes a habit for us and a great opportunity for the powerful including political parties, starting with the so called grass roots leaders (often the local goon)
    I remember an election eve conversation with a cab driver, who expressed a sentiment that seemed heretical to me at the time. Referring to the candidates standing for election, he said 'its fine if they take bribes, but after taking the bribe they should do the work!'
    [8/19, 8:18 AM] Arvind Bugga: I don't think we should be too harsh on ourselves for tax evasion. Google and Facebook don't pay any income tax in India in spite of the enormous profits they make here. One could argue that this is "legal". But as someone pointed in one of my other groups - LEGALITY IS ABOUT POWER, NOT JUSTICE. FOR A LONG TIME BOTH APARTHEID AND SLAVERY WERE LEGAL. The largest customer base of Facebook anywhere in the world is in India. They are as guilty of tax evasion as the dealer trying to sell tyres without paying GST
    [8/19, 8:49 AM] Rohtash Personal: It's not just dishonesty , tax evasion , legality , and whataboutism.

    And it's not just about India...we see it more since that is the immediate reality. Perhaps the erosion is just that little bit faster here.

    Values have gotten diluted over time, everywhere .... that's the key thing.
    The mooring ropes are getting frayed.

    The order of things is shifting faster than what we can assimilate , faster thsn that we can shift inside us.

    Entropy, they told us. Only that the pace outside is different than that inside.

    Overall...
    The underlying sentiment substance is one of disconcertment. That is what bothers me at least.

    Guess it's called 'getting on' !🙂🙂

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  5. [8/19, 8:56 AM] Divyaroop Bhatnagar: Bugs this is a debatable point. If Google is not paying taxes as there are legal loopholes available the law may need to be amended. But to hold them morally liable is a bit of a stretch. The tyre dealer on the other hand is clearly contravening the law.
    [8/19, 9:30 AM] Rohtash Personal: Here the issue is that the tyres dealer or the broker pdoes not see the correlate between morality and legal compliance ...the legitimacy of the law itself stands eroded all around him ...
    Hence no illegality and no moral issues .

    Google and the megacorps are making the law , running around it with active and generous legislative and judicial assistance ...that example is adequate to make the ordinary carve out a distinction between new and various definitions of morality and illegality .

    The law itself is a handmaiden of the powerful like never before .
    [8/19, 10:45 AM] Nandu Kulkarni: There is a distinction between morality and legality. Apartheid or slavery was legal in some countries at one time but it ought to have been morally repugnant and it was, for many people like Lincoln and he changed the law. Paying your taxes is not a moral issue strictly speaking, except that it is an obligation to society at large for the support it is supposed to provide for your security, public services etc. When the taxpayer sees that the taxes he is paying are, to a large extent going into the pockets of the ruling class the moral obligation gets diluted and is seen as morally less of an issue. Also, the government loses its authority for enforcement because the people running the government are themselves breaking the law.
    [8/19, 10:51 AM] +91 98201 59412: Corruption is likened to a cancer. It is inseparable from any political, social or economic system. After all, any system of governance is based on social contract. And the fairness or unfairness is based upon the relative strengths to enforce or unenforce the contract. Corruption can only be contained in specific cases but cannot be eradicated totally.
    [8/19, 11:14 AM] Tuffy: Legality is of course a country specific issue but is morality country and/ or culture specific or universal???

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  6. [8/19, 12:25 PM] Divyaroop Bhatnagar: Liked it Debu . We are what we celebrate. Questionable practices are being worn as badge of ‘smarts ‘ . Till someone gets caught ! Slide in moral standards has been underway for some time . In india and globally . Pendulum will swing back .
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Excellent points. We are like the Greeks (who don’t pay taxes too ) on steroids !
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Debu : different angle - where do u think religion fits in ? helps with building moral values , creates more gap between preaching and practicing or has no impact
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Thanks Atul. I'm not so hopeful. Perhaps cynicism has set in with old age! There are many indicators that developed countries like Sweden are less corrupt than India or sub Saharan Africa. Unfortunately we seem to be going the other way. Just look at the endless stream of willful defaulters from India and I'm excluding genuine business failure here
    [8/19, 12:25 PM] Divyaroop Bhatnagar: We are like that only
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Hoodwinking the prof when submitting a cleverly cogged assignment was also seen as cool smarts 😄
    [8/19, 12:25 PM] Divyaroop Bhatnagar: I'm even more cynical about organised religion as practised today in India. All of them have become ritualistic and dogmatic. As a humorous aside, one broker tried to convince me to take a cash advance. He said that घर aayee लक्ष्मी है साहेब। मंदिर में रख लीजिए। Completely missing the point that it was black money 🤣🤣

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  7. [8/19, 12:25 PM] Divyaroop Bhatnagar: Very true Chiri. Perhaps it began there
    [8/19, 12:25 PM] Divyaroop Bhatnagar: It was altogether different in the US .. seen as student, TA, and prof
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Maybe the centuries of feudal/ colonial history of exploitation got people to rationalize beating the system as being a moral thing to do .. but hard to be conclusive.
    [8/19, 12:25 PM] Divyaroop Bhatnagar: That's the point. Why are we like this?
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Chiri - even the folks who are supposed to safeguard the system are haraamis. Some of the chartered accountants in Delhi whom I have met are ever ready to tell you about ways to not pay taxes - illegally ! Tax planning is one thing - but .....!
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Oh yes! The CA community is hand in glove with the income tax department. I just heard that the department is paid a bonus for every notice they send out. The CA's are hired to reply and the tax payer is screwed. More corruption
    [8/19, 12:25 PM] Divyaroop Bhatnagar: I think it also has something to do with the pie being very small and getting what resources you have take you as far as possible. And when you are in a milieu where everyone is being dishonest and you are the only Raja Harishchandra - then you feel like a real chutiya !
    [8/19, 12:25 PM] Divyaroop Bhatnagar: That's a thought but as you say difficult to establish. There are many British writers in colonial times who have commented on how corrupt the Indians were. So it may have predated the British
    [8/19, 12:25 PM] Divyaroop Bhatnagar: That is possible. It's to do with living in a shortage economy for so long.
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Agreed .. look at the number of audit firms and credit rating agencies giving fake reports.
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Totally PWC is close to getting banned for the ilfs debacle
    [8/19, 12:25 PM] Divyaroop Bhatnagar: The big four are all in trouble - I thought !
    [8/19, 12:25 PM] Divyaroop Bhatnagar: ILFS, Satyam etc
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Wonder if they eventually decipher the Indus valley script they will find juicy anecdotes about corruption in earliest times 🤣😀😽

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  8. [8/19, 12:25 PM] Divyaroop Bhatnagar: Feudalism preceded the Brits
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Micky and Soith can comment
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Are the Chinese also like us ?
    [8/19, 12:25 PM] Divyaroop Bhatnagar: How much of their economy is number 2 ?
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Don't know
    [8/19, 12:25 PM] Divyaroop Bhatnagar: True!
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Corruption ( grabbing something that is not due to u or shortchanging the state / fellow human beings ) is prevalent . One key difference I found in China : sense of purpose . Provincial officials I met for setting up healthcare facilities, had huge commitment to betterment of their local systems. Promotions thru state apparatus were driven by changes they brought within their smaller pools of influence.
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Yes! Only deterrent is if you get caught and do not have party backing, you are done for!
    [8/19, 12:25 PM] Divyaroop Bhatnagar: That's a very important point. I think India had a sense of purpose when we became independent. Somewhere down the line we lost it. When and how?

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  9. [8/19, 12:25 PM] Divyaroop Bhatnagar: Sudhakar,
    Khats is right as far as China chinese is concerned. But for them in Malaysia, Indonesia, Philippines, atleast, they were on the roll until recently ( last 2 years) with new Govt. & professional Accountants as Finance Minister or DG of Income tax came onboard & had Fed. Govt backing.
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Not sure about that .. even in our school days the neighborhood businessman or restaurant rarely paid proper taxes. At most they would pay hafta to the cop and Sales tax guy and think they were done. Then he would sponsor our Durga Puja pandal, and wash away the rest of his burden in the Ganga during Magh/ Kumbh mela, even feed the sanyasi by hand. So it is not connected with religion either.

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  10. [8/19, 12:25 PM] Divyaroop Bhatnagar: Good points Big Dad ... but I have a slightly different take on this ugly reality ...
    just take a look at these facts :
    1. An Indian goes just 1/2 hour away from India (say Sri Lanka or Dubai or .. ) and he follows rules ... even stops at traffic lights and maintains lane discipline and doesn’t spit pan in public places
    He gets on to the flight back home and even before landing he is back to the old
    2. Some states in US have much higher taxes than India ... yet we go there and meekly follow rules ...
    One could go on and on in this vein ...

    It is not about our culture or ...
    I think the basic issue is that we can “get away with it” in India ... whether because of compromised police officials or delayed / non existent reach of law for the common man without “connections”
    So speedy justice delivery is the key, according to me ..
    in fact an oft repeated suggestion is just ban all adjournments in court except say one postponement for “force majeure” or “exceptional health reasons” ...
    lo and behold things will change ..
    I hope we can move in this direction
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Lassu you are 100% right. Enforcement is a combination of carrot and stick. Unfortunately the ones who are supposed to wield the stick are corrupt themselves. Quis custodiet ipsos custodes?
    [8/19, 12:25 PM] Divyaroop Bhatnagar: It is even a ‘fashion’ to be corrupt! I know of a case when a young businessman in Mumbai was in jail for polyester waste insurance scam; this kid gets out and his image in his community takes a leap! Like a confirmation that this guy knows the ‘ropes’ and will go far in life!
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Bloody hell! It's beyond social acceptance.
    [8/19, 12:25 PM] Divyaroop Bhatnagar: I think even in the US, I see changes! Son’s home A/C conked out. He called a ‘5 star’ company. Mid eastern guy turns up and suggests he can do the job at 50% in cash!
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Recently in Amsterdam got fingered for fake 20 Euro in change by a cab driver ( mid eastern , maybe refugee) . Raining heavily and I didn’t pay attention ; did not expect this either!
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Yes! In most circles!
    [8/19, 12:25 PM] Divyaroop Bhatnagar: An Indian friend commented: my family loves doing business in India; they know whom to grease and get things done to by pass bureaucracy!
    Go figure!
    [8/19, 12:25 PM] Divyaroop Bhatnagar: I think you nailed it ... the core of the issue is lax enforcement .Not that it doesn’t happen in the US but but they get you ...Witness Rajat Gupta etc ..
    Second it appears that in parts of the it’s significantly lower ... take the army /navy/ Air Force ..maybe related to enforcement ....
    Heard from an IPS guy recently that a lot is related to land and construction in the states ..... goes back to political funding..
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Culture and values should guide us in choosing between right & wrong . Enforcement of laws is important and reminds us of consequences , but has limitations . Especially in world where normative behavior has moved into space reserved for exceptions . Natural affinity to giving and accepting ‘consideration ‘ is the thing to worry about .
    [8/19, 12:25 PM] Divyaroop Bhatnagar: Very well said. I think our sanskriti is what is eroding most rapidly

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  11. Not only is selling property on full cheque difficult. One can't import anything into the country without a "clearing agent" or get an occupation certificate or fire clearance without paying and until very recently get FIPB clearance without paying the FM's son.

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    Replies
    1. Exactly. Two obvious questions emerge. Why are we like this? And What can be done about it?

      Delete
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