Mumbai: The landslide victory registered by BJP in the recent state assembly polls is expected to intensify the government’s crack down on black money and corruption according to Bank of America Merrill Lynch.
Some of the measures that are likely to be pursued include more disclosures on cash transactions, increased tax on cash, restrict cash holding and the implementation of the remaining SIT proposals.
Analysts at the brokerage firm also believe that the Centre could use the new Benami Property Act to pursue undisclosed holdings and aggressively prosecute willful loan defaulters.
“We expect Mr Jaitley to step up the drive to force black money hoarders to declare under the IDS II through make-an-example raids and seizures. We grow more confident of our call that the IDS II will net Rs 1,00,000 crore, almost double of what is budgeted.
The ministry of finance will surely want to build on the perception that the UP victory has validated the Centre’s demonetisation drive. It will likely also threaten to investigate black money hoarders’ property investments using the Benami Property Act,” said Indranil Sengupta, India economist at BoAML.