 People have been badly hit by demonetization. We are told that this is a temporary or small inconvenience for the service of the nation for a bigger cause, that is, the Prime Minister's fight against black money. We were told that with demonetization, rupees 3 to 4 lakh crore of black money would be destroyed. The RBI could then reissue this money for social welfare. All this proved to be total speculation. 97% of all the money has come back to the banks with only 3% to go and people still exchanging old currency at RBI. It looks like very little or no black money will be destroyed. While the government was expecting rupees 4 lakh crore or so to turn up as black money, it looks like not even 10% of this is going to be revealed. Was there something wrong with the government's calculations? To understand this, we need to see what exactly black money is and how is it held. So what is black money? Black money is income illegally obtained or not declared for tax purposes. And how is this held? It can be held as cash, it can be held as gold and jewelry, it can be held as land, plots, flats and other immobile property. Unlike what people think, it can also be held in bank accounts with Benami accounts through KYC loopholes or even Swiss banks or other overseas bank accounts. One very simple reason why demonetization failed. According to the government's own estimates, only about 6% of black wealth in India is in the form of cash. If they knew that only 6% is held as cash, why didn't they target black wealth stored in the form of gold or property? Or for that matter, why didn't they target the amount of money stashed abroad? According to reports, nearly Rs 34 lakh crore is stashed abroad by big companies and rich individuals of India. This is done mostly through the method of over-invoicing and under-invoicing. These companies or individuals store their black money abroad and bring it back to India in the form of an FDI and convert it into white money. Since Modiji came to power, the FDI from tax havens such as Mauritius in Singapore has increased by 40%. Now let's take an example of Adani. Adani was one of the prominent corporates involved along with others in the imported coal scam. Worth of the scandal, Rs 29,000 crore. Probing agency, directorate of revenue intelligence. Modest operandi of the scam, over-invoicing of coal imports. Adani Group supplied coal to Tamil Nadu Electricity Board, Gujarat State Electricity Corporation, Haryana Power Generation Corporation and Jhanshar Power Ltd. According to DRI, the coal supplied came from Indonesia. But on paper, the coal is being supplied by intermediary firms based out of Dubai, UAE. This is done to inflate the coal bill. The coal from Indonesia reaches directly to India at Rs 50 per metric ton including shipping and insurance. The front company would buy the coal from Indonesia at Rs 50 per metric ton and supply it to Adani Power Companies at Rs 82 per metric ton. Who in turn, showing high cost of coal would sell this to the straight electricity boards at a very high price. Ultimately, the consumers end up paying for the falsely-invoiced coal in the form of high electricity charges. The margin made through over-invoicing the coal is parked abroad. The money stashed abroad in effect is black money made at the expense of the public. So will Modi Ji actually bring back black money from his friends?