cobrapost - April 27, 2013

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Reliance Life, Case 1, K. Madhumathi, Territory Manager; Chandrashekhar, Sales Manager, Hyderabad, Andhra Pradesh

A seasoned professional, K. Madhumathi knows how to turn big cash into white with her insurance company. Says Madhumathi: “Black money we cannot make it white so only in insurance we can make it white.” Rs. 1 crore is simply like nuggets for her as she says: “Croron ka karte hain bhai sahib … ek crore to bahut chota amount hai … hum log yahan 50 crore 80 crore ka karte hain (We do it for crores [of rupees] … Rs. 1 crore is a very small amount … we here do it for around Rs. 50–80 crore).”

The Cobrapost journalist informs the receptionist that he wants to invest some money in insurance and would like to meet a senior official. He is promptly introduced to Sales Manager Chandrashekhar.

Reporter informs Chandrashekhar that he wants to make big investment in some long-term insurance plan, maybe, pension plan, which is safe and earns us handsome returns. After dabbling into what he manages in his company he invites his boss Branch Head/Territory Manager K. Madhumathi to join in the education of our reporter.

Madhumati is a very forthcoming and jovial official who would lighten up the air with bonhomie. She asks what the calling of our reporter is.

We dabble in some business related real estate, replies our reporter. He then reiterates his proposition of making a big investment in some safe instrument which yields us good returns.

Madhmathi seeks some family details of her visitor so that she could suggest him the best product according to what their need is.

This leaves the reporter with little choice and he tells Madhumati who the real owner of the money is: A politician.

Madhumathi is quick to understand the nature of our proposition to hurl this question at the reporter: “Is it a black money?”

Reporter tells her the amount to be invested is all in cash.

Madhumati why she asked such a question: “See many of my clients they give cash because they cannot invest directly through cheque because its.”

We got your point, says our reporter, it is indeed black money that is why the politician is investing it all in our names, me and my wife, instead of his own. The purpose is to make it white.

Understanding the point, Madhumati says: “Alright … you want to make it white?”

After some more deliberation, Madhumathi asks: “How much you want to invest?”

To start with Rs. 1 crore, already kept at home, and if everything goes right, there is more money coming around Rs. 5–10 crores.

Accepting huge amounts of cash is never a problem with Madhumathi: “Yesterday evening only I picked up one 50 lakh cash … aapke jaisa hi … he was not a politician but a businessman … very big businessman … toh unko kya hai ki his name should not come out (Yesterday evening only I picked up Rs 50 lakh … same as yours … he was not a politician but a businessman … a very big businessman … all he wanted is that his name should not come out).”

The reporter tells her that he too has the same condition: The politician’s name should not be revealed.

Madhumati breaks into a laugh. Brimming with confidence of a seasoned launderer, she says: “Because we block the names … because customer ka naam bahar nahi aana chahiye (Because the names of the customer should not be revealed)… because many of the customers are having black money where they want to make it as a white … name aane se ek baar Income Tax ko pata chal jayega na toh un logon ki life kharab kar denge (if their names come to the knowledge of the Income Tax officials they will make their lives miserable) … so that’s the reason we block the name of the customer … we never enter … we never give the customer name to any of that … that is number one … number two is when we are saying the pension plan when you are going for that… so when you are going for the big investment … pension plan mein kya ho jaata hai (what happens in the pension plan) when you are withdrawing the amount people will catch hold of you … kahan se aa raha hai … kaise aa raha hai (from where it is coming … how is it coming) … how much you invested long back … wo bhi pata karta hai (they enquire everything).”

Now, we know our money is going to be in right hands, and there would be no reporting however big the money might be.

Madhumati has a better idea for investment of black money in cash: “Yesterday when I have taken 50 lakh we dumped it in a fixed deposit. Once it has gone into white … it has white mein chala gaya to koi nahi poochega (it has gone in white then nobody asks you)… ek baar agar aapke naam pe policy issue ho gaya toh (once a policy is issued in your name then) it will become white … abhi mere paas 1 crore hai (suppose I have 1 crore) … if I am a normal employee mera tankhwah saal mein pandrah lakh hai toh (my annual income is Rs. 15 lakh then) how will I earn 1 crore? Even though I have property I sold it but still I need to show that according to the government … I will get only 30 lakhs [in white]…but peeche ka 70 lakh to ayega hi (but about the rest of Rs. 70 that will also come) … that will become black … black money we cannot make it white so only in insurance we can make it white.”

This is how she would put all our black money in regular banking system through FDs and then route it into the insurance as something cleaned. It is like having our cake and eating it too.

Madhumathi reveals the Modus Operandi how the money will be made white in insurance. She opines: “Wo main kya karoongi bacchon ke naam pe … pardadoo ke naam pe… dadoo ke naam pe ya to mere uncle ke naam pe (What I will do is I will invest it in my children’s name, in the name of my great grandfather … in the name of grandfather … in the name of my uncle) … and nominee will be myself.”

The idea, she suggests, it invest in as many names of your family members as you can think of.
Would all the money be white on return, asks the reporter.

Replies Madhumathi says: “Once if it is issued that is white… issue hone tak (until it issued) it’s a black.”

The territory manager is ready to even get us checked up by a doctor at our home, mandatory for any insurance policy.

Why don’t you drop by in the evening at our place to complete the formalities, the reporter throws invitation, and then you can talk to the politician from Delhi over phone.

Accepting our invitation, Madhumathi says she would bring along her regional manager, and if there is any problem she asks our reporter to contact him.

Would he solve all problems, asks our reporter.

Madhumathi has the answer: “Jab company ko paisa aa raha hai toh kuch bhi manage kar sakta hai. Aisa nahin hai manage kar sakta hai matlab illegally nahin karega magar (When money is coming to the company everything can be managed. It’s not that it will be managed illegally…but) see if the customer means these kinds of things like he says that my name should not come then of course when they are investing so much big amount normally no customer likes their names should come out … so many customers are there … there are N number of customers … they have invested 10 crores also.”

When asked Madhumathi suggests us to invest our black money in Reliance Classic, a one-time investment plan, with returns double the amount invested.

Madhumathi goes on to explain how investing in insurance helps you make your black money white: “Anything whatever the investment you want to make it as a black to white … suppose if you purchase any land that they will ask you from where you got this money … but in insurance mein kya hota hai (but what happens in insurance) it will [be] white … I will tell you the reason also … suppose mere income ke hisaab se according to my IT return my income is only 10 lakh … 10 lakh ke hisaab se 60 times of that … that means 6 crore … 6 crore tak I can take anything.” Then no government agency would ever trouble you. Beyond this threshold you might have a problem with them.

Chandrashekhar, sitting next to Madhumathi, chips in to reveal something more about the functioning of their company: “Insurance mein aisa hai na aap jo bhi details dete hain (It happens in insurance that whatever details you give us) … we never show it to the IT Department.”

Chandrashekhar reiterates what his boss has already suggested: There is no reporting to the Income Tax authorities.

If we can’t give them the required documents, help is at hand as Madhumathi says: “If you don’t want to give that … then we will go to the higher official… uske liye kya karna padta hai (what has to be done for that) they will … uske liye wo log baat kar lenge (they will discuss that) … because it’s a huge amount … they will talk to you direct.”

If you can show them big money, every rule can be bent.

What about the requirement of PAN card, asks the reporter.

Madhumathioffers a solution with a smile: “Aapko kuch bhi nahin … PAN card jisko nahin hai uske liye Form 16A ke liye doosra rasta hai (You need nothing … if one has no PAN card then there is another way in Form 16a).”

If we don’t have PAN card, it is apparent, we don’t have to worry. Forms 16 A is there to come to our rescue. If you have the will there is the way, as goes the age-old adage, and if you have the big money, Reliance Life has the way.

Madhumathi confesses voluntarily what she has done in the past to instill confidence in us: “Croron ka karte hain bhai sahib … ek crore to bahut chota amount hai … hum log yahan 50 crore 80 crore ka karte hain … and Reliance mein Ambani ke group mein to itne saare karte hain poori yeh Rajasthani log hai na … Rajasthani log zyada karte hain … Marwari (We do it for crores [of rupees] … Rs. 1 crore is a very small amount … we here do it for around Rs. 50–80 crores … and there are many customers who invest with Reliance of Ambani group … these Rajasthani Marwari people do the most).”

To buttress her point that our investment should not cross the threshold of 60 times of our income, Madhumathi gives an example of the fallen hero Ramlingam Raju of Satyam Computers, how his investment in insurance was never questioned, although other investments were.

“Aap aaram se so sakte hain … kuch nahin hoga … hum logon ne daala hai kuch nahin hota(You can sleep comfortably … nothing will happen … we have put in earlier … nothing happens),” reassures us Madhumathi, quoting Section 10-10(D).

As for the counting of the big cash, Madhumathi says: “Aapko kahan pe karwana hai? Ghar pe karna ho to ghar pe kar dete hain … machine hai le ke ayenge (Where do you want to do it? If you want it to be done at home, we will do it there … we will bring along the machine) and will give you the slip immediately.”

Madhumathi is unstoppable as she goes on to claim: “You will not believe even from beggars, we have collected 5 lakh cash … beggar (We have collected Rs. 5 lakh cash from the beggars).”

We have no reason to disbelieve an experienced insurer like her who has been in this field for the past 13 years. Upon our request she immediately calls up her boss informing him in Telugu about the proposed investment and the evening meeting with the henchman of the VIP client. But the regional manger is unable to come and has asked her to carry on with it. Her boss has enough confidence in her, so she will take the deal forward.

Not be left behind his boss, Chandrashekhar makes a revealing claim saying that he had brought Rs. 50 lakh from Bihar to Delhi to invest it on behalf of the nephew of a big politician who is a sand contractor there.

Madhumathi also swears to secrecy.

The meeting ends with a promise from both sides to meet in the evening to take the deal forward.

When our reporter reiterates his offer telling her the big cash is ready, the Reliance official advises him to come to her branch in Hyderabad.

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