How do Politician and Businessman Manage their Corrupt Money? A White-collar crime in India

            We often come across the news, Illegal scams, and crimes in India. for instance, Money Laundering, Bank Frauds, Bribery, Cybercrime, Real estate frauds and etc. We hostility and criticize them and move on. These are very small scams which are Illegal done. 

What about legal crimes and scams?

        We never think about the big scams which are running under our nose in a very legal way.

There are many loopholes in the Indian Constitution, Judiciary system, Law and order, tax evasion, and many more. Here the educated people belonging to a higher class of society make use of and commit crime and scams in a very legal way which we are unaware and never try to think about it. 

Here in this article, we are about highlight one of the legal scams.

Charitable Trust Scams  

​​First, we need to understand Tax Exemption to a Charitable Trust

The income of a charitable and religious trust is exempt from tax under, Section 10, Section 11, etc

As per the Income Tax Act, 1961, Section 10(23C)

Any Non-government Educational Institutions exempted from the tax provided that the income earned by any university or educational institution existing solely for educational purposes and not for the purposes of profit. 

As per the Income Tax Act, 1961, Section 11

Section 11 provides an exemption for income derived from property held under trust wholly for charitable or religious purposes to the extent such income is applied for charitable or religious purposes in India. However, this exemption shall be subject to certain conditions

There are few more subsections under Section 10(23C) which tells us about Income under 1Cr and Exceeding 1Cr. The Trust needs to show 85% of the money is used for the welfare of society. 

Now here, We can understand why our most of the politician and businessman run School, Colleges, and Hospital under the Umbrella of Charitable Trust OR Non-Profit Organisation 

Needless to say, How our smart Politician and Businessman can show charity work on papers only but not in reality, Thanks to the loopholes 

Here are few examples of charity.

Probably India's finest and best hospital:  Lilavati Hospital And Research Centre

Lilavati Kirtilal Mehta Medical Trust (LKMMT) is founded by Shri Kirtilal Mehtaunder the umbrella of public Charitable Trust. It has many hospital chains. Click Here for More Info. Don't expect free treatment as is owned by Non-profit trust.

Credit: minaean.com

Apollo Hospital

Apollo hospital Under the Umbrella of Apollo Foundation (NGO)

Credits: Apollo Hospital

Karnataka's one of the best Engg College: Ramaiah Institute of Technology 

"Gokula Education Foundation" under the umbrella of a non-profit trust and Under the same foundation they run hospitals in Banglore. Click here for more Info

Credit: www.youradmissionguru.com

Probably he owns kingdom:  Sanjay Ghodawat Group of Institutions

University, Schools, Colleges, Hospitals, Airport, Farmhouses, Hotels and what not? Most of the asset is under the umbrella Non-profit Trust "Sushila Danchand Ghodawat Charitable Trust" If he declares the total property he could be the richest person in Maharashtra  (Including Charitable Trust, NGO, Education Trust and Foundation).

Below a picture of a School In Kolhapur : 

Credit: www.sginstitute.in

Look around your area. Most of the hospitals, School and colleges are built by Politicians or their relatives. And Its Not their hard-earned money.

Beware Below words,  These are just Tax Savers shield.  

They only help you on papers, not in reality  

• Charitable trust
• Education society
• Non-Profit organization or NGO
• XYZ Foundation 

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