India to be cleanest country by 2020 - The Honest Truth By Ajit Dayal
Investing in India - Honest Truth by Ajit Dayal
India to be cleanest country by 2020 A  A  A
26 MARCH 2013

Countries build a reputation for themselves over time.

Sometimes good - sometimes not so good.

Take Switzerland.

The images of pristine alpine ski slopes, the famous Toblerone chocolates that are shaped like its beautiful peaks and lazy cows with bells singing in the mountain air are what the travel brochures project.

But Switzerland is still seen as that shady country willing to hide the illegal wealth of African dictators, Asian politicians, Middle East arm dealers, Russian oligarchs, or India's notoriously dishonest businessmen and members of the establishment.

A James Bond movie will typically have a scene of "bad" money changing hands in a Swiss Bank.

A crime novel will have some link to a numbered account of a Swiss Bank.

The SEC and the Eurozone still badger the Swiss to get rid of their secrecy and open their banking practices to global scrutiny.

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If you wish to embarrass a politician (not that they ever get embarrassed), all you need to do is allege they have a Swiss bank account. You don't need to say its "dirty" money - that is a given.

So, while most people love Switzerland for its chocolates, the real secret of Switzerland's success may have been the ability and willingness to act as a laundering machine for dirty money.

A marketing person would say that is the "brand attribute".

And with that they would promptly release an ad campaign:

    Why is Switzerland such a clean country?

    Because it is one big laundering machine.
Swiss under threat?

But in a world that is flat (though crooked) the monopoly of that brand attribute is rapidly changing - you no longer need to go to Switzerland, Singapore, or Mauritius to launder money.

As the Cobrapost sting operations across 49 branches of Axis Bank, HDFC Bank, and ICICI Bank in five zones have shown, you can allegedly launder money right here at home in India.

24x7: the branch managers will be willing to open the bank branches for you at special hours.

True, the chocolates in India are terrible - nor is the air as clean and crisp as the air in Switzerland.

But, when laundering money is your main objective, maybe those ancillary things don't matter.

These private sector banks have been opening branches at the rate of maybe 5 per business day. Over the next seven years, by the year 2020, these banks will have covered every nook and corner of India with their glass and steel branches. Before you can say "Cobra Sting" they will have converted all your dirty black money into sparkling white life insurance policies.

It may cost you Rs 880 per Rs 100,000 to do this magic trick - and it will cost you a lot more in hidden commissions if you buy those insurance products - but what are a few rupees between friends?

The good news is that the branch managers will have met their monthly targets. And these companies will have met their annual earnings targets. The senior managements of these banks will retire rich - their ESOPs will be worth a lot more.

After all, life is a "baniya ka hisaab kitab" - as a senior member of one of the stung banks had told me many years ago.

And that clearly shows up in the video tapes.

Life is about targets, profit growth, and market cap.

Life - and business - is not about ethics, about doing the right thing, or about being fair. We lost that innocence when people we look up to tell you "as it is".

The Mahatma's image may be on the notes but the impunity of Mrs Gandhi is in the hands that grab them.

Mr. Deepak Parekh, the venerable Chairman of HDFC, reminded us while talking at a CNBC event a few months ago: corruption is a non-issue and cannot be eradicated; the media are wasting their time talking about it.

It is this same corruption that generates the black money which allegedly gets laundered by supposedly holy private sector banks. Banks which have commanded a valuation premium (in full disclosure companies I am affiliated with, may own some of these shares for clients). This black money is one of the large engines of growth in earnings.

Banks moving into clean-tech, Indians can buy gold

The boring scientists and PhD types tell us that clean tech is a process of converting a low energy input into a higher energy output, without pollution.

But we know these scientist-type folks remain poor with dishevelled hair, frayed collars, and torn chappals.

The scientists need to learn the creative use of clean-tech technology as mastered by the suave bankers with gelled hair, stiff button-down shirts, and polished black shoes.

Normally, a person earning an income of Rs 1 lakhs would need to pay a 30% rate of tax to convert his income to what is called "white money".

But the clean-tech banks, using business principles that have baffled those with Ph. D.'s, can find ways to convert cash or "black money" into "white money" by paying Rs 880 per lakh, or a "conversion charge" of 0.88%.

That sure beats the official tax rate of 30% for your hard earned profits.

In fact, banks can now boldly advertise:

    Clean-tech investing with low tax impact.

    Contact your bank for further details.
The Finance Minister should no longer focus on telling the RBI what he thinks the interest rate should be. Instead he must give tax credits to the private sector banks to devise a method to convert our unclean air into energy and reduce India's oil-import bills. If that were to happen, the FM will finally allow us to buy as much gold as we want! And buy gold we must.

India certainly needs more of these private sector banks (yes, RBI, please grant more licenses) and India needs more of its respected business leaders to suggest that fighting corruption is waste of time.

So, every time you hear about a new branch being opened in your smelly, stinky neighbourhood just think of it as another step in the right direction: by 2020 India will be the cleanest country in the world.

But, sadly, you will still need to visit Switzerland for their chocolates. They are the best!

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Why you
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Disclaimer: The Honest Truth is authored by Ajit Dayal. Ajit is a Director at Quantum Advisors Pvt. Ltd and Quantum Asset Management Company Pvt. Ltd. The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and has not been authenticated by any statutory authority. The author, Equitymaster, Quantum AMC and Quantum Advisors do not claim it to be accurate nor accept any responsibility for the same. Please read the detailed Terms of Use of the web site. To write to Ajit, please click here.

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11 Responses to "India to be cleanest country by 2020"

jack loach

Jul 17, 2015

Sods ----- Law.
July .- 2015. ( Updated.)

For almost two decades we have strived to get justice for the injustice we have suffered at the hands of a world renowned bank--- PICTET & CIE. BANK.

Two yorkshiremen both running their own small family businesses trying to resolve the problem by taking all the correct legal procedures to recover their monies.

The matter was raised in Parliament – twice-- the FSA investigated the matter concluding that PICTET had rogues operating in their London Bank --- but the rogues had left ---saying no one left to prosecute.??? ----- so there.

We then approached the Financial Ombudsman Service. (FOS) --- our case was dealt with by seven different people ---- then our numerous E-Mails were ignored --- nobody would speak to us -------so there.

We then asked the SFO ( Serious Fraud Office.) to investigate our case ---- the criteria of our case ticked all their boxes. --- we were instructed not to send them
any documents/evidence.------ in fact they wrote to us advising us to go to the Citizen's Advice Bureau.(CAB.)
Richard Alderman the SFO boss ---- who responded to our letter was the same man who would not investigate the “ Madoff” scandal or the “Libor” fiasco.
The MP's committee ---- said he was sloppy--- and the SFO was run like “ Fred Karno's Circus” ----- it was an office of fraud.----- so there.

Our M.P. approached our local Chief Constable to investigate----- he was called---- Sir Norman Bettison--- Chief Constable of West Yorkshire Police ---- a force that made “ Dad's Army” look like the S.A.S. They were inept – corrupt ---malicious --- from top to bottom. We were criminally dealt with by the Forces Solicitor---- the Head of the Economic Crime Unit ----and the Chief Constable ----- so there.

We were then advised to pass our complaint against West Yorkshire Police to the I.P.C.C. – which we did --- they advised us to make our complaint to ---- the West Yorkshire Police --- we did with reluctance --- all we got was abuse and obfuscation. ----- so there.

Sir Norman Bettison ---- The Forces solicitor--- and the Head of the Economic Crime ---- have all been removed from their posts and facing criminal allegations.
------ so there.

We even sought justice through the Courts --- culminating in a visit to the Court of Appeal-London.--- On leaving the Courts of Appeal that day our barrister a “rising star” informed us --- that if that was British Justice then you can keep it. He quit the law and moved to Canada ----- so there.

A few years later we learned that one of the judges ( Lord Justice.) in our case at the Court of Appeal was related to a senior executive of the Pictet Bank ----- the judge retired a year or so later -----so there.

The Ministry of Justice passed our case to Lord Myners to investigate --- we would rather have had Mickey Mouse or Donald Duck do it. --- to this day we don't know
---whether he did anything or not ---- probably not --- seeing that his wife was on the Pictet Prix Board.

Pictet & Cie .Bank --- voted private bank of the year 2013.
Ivan Pictet ---- Voted banker of the year 2012. ---- the senior partner --- lied on numerous occasions and had documents destroyed --- also said genuine documents were forgeries. ----- so there.

Pictet & Cie. were adamant that they had no involvement with MADOFF ---- they lied again --- they let him steal the monies then conned it off him.--- so there.

2012 --- June – Published in Anglo INFO. Geneva – USA Trust Fund Investors were sent false and fraudulent documents by Pictet Bank in order to collect large fees ( Like Madoff.) Even after the SEC in the USA uncovered the fraud Pictet continued to charge fees and drain whatever was left in these accounts. Estimated that $90 million lost in this Pictet Ponzi scheme.-- so there.

Ivan Pictet in Oct. 2013 ---- Given the Legion of Honour --- but saying that ---- honours were given to Hitler --- Eichmann --- Mussolini ---Franco --- he's in fitting company. ----so there.

April 2015. ---- Inner City Press.---- United Nations Joint Staff Pension Funds.
Pension Fund.--$53 Billion.----- The spokesman FARHAN HAQ would not answer whether Investment chairman – IVAN PICTET had to quit ---- after allegations made by some staff. ---- “ once a crook always a crook” – so there.

MONTY RAPHAEL.Q.C. -- Peters & Peters.London. They were the banks lawyers.
Monty Raphael.Q.C. along with Ivan Pictet withheld crucial documents requested by the High Court ---- the FSA ---- and the police Fraud Squad. ----so there.

Monty Raphael.Q.C. became an Honorary Queens Counsellor in March. 2012.
Monty Raphael.Q.C. became a Master of the Bench in Nov.2012.
An expert in Fraud ---the Doyen of Fraud Lawyers. ----- so there.

This says a lot about Banks --- and their lawyers --- the consensus of opinion is that they are highly paid “crooks” ---- no wonder they voted Ivan Pictet banker of the year ----- and Monty Raphael made a Queens Counsellor -” crime does pay”.

It appears that crimes in the “establishment.” are honoured by their peers.


Full Story.---- “google ”

Insert.----- The Crimes of ----- Pictet & Cie Bank.
or insert
Ivan Pictet. Banker.
Monty Raphael Q.C..

Update --- July .. 2015.

Full Story--- "Google " ---- The Crimes of -----Pictet & Cie. Bank.

1996 ----- F.S.A--- Breach in London.

2003 ----- F.S.A. -- States rogues operating in Pictet's London office. Ivan Pictet
states that documents were forgeries but were later proved to be genuine inthe British Courts. He had documents destroyed in their London office ,hoping to hide the crimes.

2007 .- - - The Securities and Exchange Surveillance issued a recommendation
that the Prime Minister and The Commissioner of the FSA to take disciplinary action against Pictet Asset Management – Japan Ltd.

2008 .-- Dec. - Pictet Bank state - " We have never chosen any funds linked to Madoff.

2011 - - - Madoff Trustees sue Pictet & Cie. Bank for $156 Million.

2011- - - Pictet & Cie Bank abetted a Bribery Scheme - Oil company sues Pictet for $350Million

2012 - - - April – Geneva Bank Pictet used in Offshore Tax Scheme. ( USA.)

2012 -- - June. -- Published in Anglo INFO .Geneva.--- USA Trust Fund Investors were sent false and fraudulent documents by Pictet Bank in order to collect large fees. ( Like MADOFF)
Even after the SEC in the USA uncovered the fraud Pictet continued to charge fees and drain whatever was left in these accounts. Estimated that $90 million lost in this Pictet Ponzi scheme.

2012 - - - July. -- De – Spiegel. -- states – Pictet Bank uses a letterbox company in Panama and a tax loophole involving investments in London to gain German millionaires as clients.

2012 - - - August ---- German Opposition Leader accuses Swiss Banks of "organised crime."

2013 --- Jan.--- Swiss MP' table motion to freeze Tiab Mahmud's assets of " criminal origins"
held in Swiss banks – $18 million held in 5 accounts at Pictet & Cie. Bank. Bahamas.

April 2015. ---- Inner City Press.---- United Nations Joint Staff Pension Funds.
Pension Fund.--$53 Billion.----- The spokesman FARHAN HAQ would not answer whether Investment chairman – IVAN PICTET had to quit ---- after allegations made by some staff. ---- “ once a crook always a crook” – so there.

Ironically the Pictet & Cie.Bank partners are bigger criminals than the criminals who have accounts in the their bank.

The bank is now seeking to re-structure -- to cut the partners liability – hoping to off load their decades of criminal responsibilty – and move onwards to carry out new crimes. The Germans are
right -- the bankers should go to prison if found guilty of financial crimes.

Swiss Bank Accounts. July . . 2015.

Is your monies safe in these accounts ---- definitely NOT.
Would you get your money back if every body decided to withdraw all their accounts – NO WAY.
Economic Experts say that there would only enough money to repay 50% of their clients.
Are you going to be in the 50% --- that loose your money.-- Get it out NOW.

2012 -- - June. -- Published in Anglo INFO .Geneva.--- USA Trust Fund Investors were sent false and fraudulent documents by Pictet Bank.Switzerland. in order to collect large fees. ( Like MADOFF) ---Even after the SEC in the USA uncovered the fraud Pictet continued to charge fees and drain whatever was left in these accounts. Estimated that $90,000,000 million lost in this Pictet Ponzi scheme.

2012 - - - July. -- De – Spiegel. -- states – Pictet Bank uses a letterbox company in Panama and a tax loophole involving investments in London to gain German millionaires as clients.

2012 - - - August ---- German Opposition Leader accuses Swiss Banks of "organised crime."

All the fines that crooked Swiss banks have incurred in the last few years exceeds £75.Billion.
It is also calculated that the secrecy " agreements" with regards to tax evation by their clients will cost the banks another £450 Billion.( paid out of your monies.)

The banks are panicking --- the are quickly restructuring their banks ---- from partnerships --
to " LIMITED COMPANIES." ----- this will probably mean that in the future --- they could
pay you only 10% of your monies " if you are one of the lucky ones" ---- and it be legal.

Peters &Peters – Partners.— (1999---2015)--- guilty.

Pictet & Cie. -- Partners. --- (1999 --- 2015)---guilty.

The bank and it’s officials/lawyers deliberately withheld crucial documents requested under a High Court order. The bank and it’s officials/lawyers deliberately withheld evidence from the Police, and one of it’s account managers Susan Broadhead gave a false witness statement to the Police.
Another one of it’s managers Nicholas Campiche ( Now Head of Pictet – Alternative Investments.) concocted a letter pretending to be a client and closed his account. The senior partner (Ivan Pictet.) sought to have numerous documents destroyed,along with those copies held in their London office’s of Pictet Asset Management. Initially stating that they were forgeries then their lawyers Peters & Peters – Monty Raphael Q.C.–and the barrister Charles Flint.Q.C. later had to admit in Court that the documents were genuine.

British Parliament. Hansard .
Barry Sheerman .M.P.—quote.

---------“ Constituents of mine have lost £2 million through fraud. The fraudster used Pictet & Cie - - a French Bank - - and Pictet Asset Management to back the fraud being perpetrated.””

Both Ivan Pictet and Monty Raphael.Q.C. conspired to withhold crucial documents requested by the High Court – the FSA --- and the Police Fraud Squad.

Written Parliamentary Questions received by the table office ..

(1) To ask the secretary of state what steps he is taking to ensure that Swiss Banks such as Pictet & Cie do not evade criminal prosecution under EU law even when the illegal act is committed by a London based subsidiary.

(2)To ask the secretary of state what steps he is taking to protect the rights of UK citizens who seek redress following criminal activities by Swiss banks with subsidiary offices located in London.

We note that there has been a sharp increase in Peters & Peters partners leaving to go to other practices. Moving does not alleviate them of any responsibility from any illegalities that may have occurred at Peters & Peters during their partnership tenure. From 1999 onwards.

The consensus of opinion is the Pictet & Cie should be prosecuted , and that their U.K. banking licence should be taken away.

Their Solicitors at Peters & Peters .London “ struck off and prosecuted..”

Started campaign --- June 6th.2008.--7.5years ---- approx 16 .5 million e-mails - - - but still no writs, injunctions or threats of litigation - - - WHY - - - because it is all true.

The bigger they are --- the harder they fall.!!!
In America ---- they would have all been in prison for the last seven years.

Feb 2013,--- Pictet & Cie Bank Partners remove their unlimited liability.They realise that all their personal wealth is at risk , the people they have conned might want their money back.

Full Story.*** ---" Google" -----insert.--- Pictet & Cie. Bank.

Insert-- ( Charles Pictet. Banker.
Insert-- ( Ivan Pictet. .
Insert-- ( Jacques de Saussure.Banker.
Insert-- ( Nicolas Pictet. Banker.
Insert-- ( Jean-Francois Demole.Banker.
Insert -- ( Philippe Bertherat. Banker.
Insert-- ( Renaud de Planta. Banker.
Insert. -- ( Monty Raphael.Q.C.)

Over the last eighteen months we posted the following on hundreds of sites . ---

*** Were currently waiting for the West Yorkshire Police ;-
(1) Chief Constable . Sir Norman Bettison
(2) Forces Solicitor. Mike Percival.
(3) Head of Economic Crime Unit. Det Chief Inspector. Steven Taylor.

to see if they continue to cover up this case like the FSA. – “ watch this space.”

We can now state that all the above have been removed from their posts. All three facing criminal allegations.

These three senior police officers and Monty Raphael Q.C. helped and assisted the Pictet & Cie Bank in keeping crucial criminal evidence from the High Court and Court of Appeal.


Sourav Chatterjee

Apr 5, 2013

I hope you or your relatives have never bought any LIC policy.LIC is the most opaque structure to launder money started by govenment of India. In spite of that we choose to blame the private banks because they are easy targets. ULIPS clearly spells out the charges and gives a 15 days (freelook) to return the policy. Its time that we customers keep ourselves more updated and stop blaming banks for cheating us. It does not take more than 1 week to do some basic reading and understand most financial products. Its sad that instead of doing the same we keep blaming banks for cheating us. Its high time that financial literacy is part of school curriculum. We are still in the age where learning to manage your own is considered sinful by most of us. We can spend time window shopping in malls but will refuse to take control of our financial future.

Lets stop blaming easy targets and take some hard steps. Each time you ask for a discount by not taking a printed bill you are creating black money.
Each time you pay some of your own contribution to buy a flat in cash to save registration cost you are creating black money. We are creating black money in our day to day transaction which we need to stop. If we stop creating this black money and shame the people who have black money in our society we will be able to fight this menace.

This bankers are one of us only they did not come from moon that we start blaming them.

Lets first change ourselves then blame others.

Like (3)


Mar 27, 2013

The black money conversion through Insurance Policy route is one thing - nobody is really cared about this even though it is known for 2 - 3 years. Now, New Dimension of renting out lockers to keep hot cash for safe keeping for a service charge- It is quite prevalent I believe - somebody in the tax department need to be really concerned. where are we heading? All these things are because of quarterly result drive as in the West. By hook or crook , declare better result than Peer. We have some Satyams in the making in banking Sector.

Like (4)

Pradeep Kumar Nair

Mar 27, 2013

Yes you are absolutely right, we will completely cleaned up as a country of all ethics and conscience :)

BTW, Belgian and Albanian chocolates are way better than SWISS! like you say we are a victim of the marketing genius of Switzerland

Like (6)


Mar 26, 2013

I too am an account holder at one of the "stung" banks.
These banks will open branches at every nook and corner to service every crook and crony.
It is sickening how the relationship managers in these banks start circing around you like vultures if they see any money in your account.Their only aim is to somehow get you to invest in one of those fraudulent ULIPS or ULPPs to maximise their commissions and knock your money off.
And Mr.Deepak Parekh pretends to be a a holier than thou banker!!

Like (4)


Mar 26, 2013

Starting from PN notes to all these sum up India to be a banana republic. What saddens me is that people like Mahatma Gandhi laid their life for this country to be run by people who have no moral values. But, finally whom to blame than our self because, every one wants a quick fix at the cost of nation.

Like (5)


Mar 26, 2013

shabash ajit, veri nice..... why don't you write a book !!!

Like (4)

Carlos de Souza

Mar 26, 2013

Hindustan is a country of CHORS by and large. I think Deepak Parekh was merely being practical. To bring down corruption in Hindustan, one would need a Lee Kuan Yew. I really don't know whether Hindustan has that sort of person.
The way your Equity Master schemes are marketed, it also appears to be a quasi cheating scheme, to my mind. Sooo, only those who are without sin are entitled to throw stones :-) Btw, this is not a defence of corruption (which is a chronic disease in Hindustan) but a practical take on the subject.
I use the word "Hindustan" wilfully.

Like (3)


Mar 26, 2013

A scathing article ... well done! And, what a sorry state of affairs?! It seems there are no morals left in the society. Nothing shocks us any more ... we're capable of sinking to unimaginable levels! Welcome Kalyou! Will we qualify as a "failed state" ... as nothing seems to work except cheating?!

Like (4)


Mar 26, 2013

Et tu HDFC...

Like (4)
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