th international tax & finance conference, 2014 1 material/itf2014/dilip k...fera, fema,...

Prevention of Money-Laundering Act, 2002 – Overview and Impact

18th International Tax & Finance Conference, 2014 1


2 18th International Tax & Finance Conference, 2014

Dr. Dilip K. Sheth B.COM (HONS), LL.M., FCA, PH.D (LAW)

PROFESSIONAL EXPERIENCEIn practice for over 40 years in:

• Counselling in areas of international tax, foreign collaborations, non-resident investment, international arbitration, anti-money-laundering law, consumer protection and a host of other legal matters.

• Advisory and Appellate matters in International Taxation, Laws of Foreign Exchange and other laws.

ORGANISATIONAL ASSOCIATION• Former Chairman: Indian Advisory Board, Hongkong Bank – HSBC.

• Independent Director : SBI Cap Trustee Co Ltd.

• Member: International Fiscal Association, the Netherlands, Institute of Chartered Accountants of India, The Bombay Chartered Accountants Society.

• Life Member: Income-tax Appellate Tribunal Bar Association.

PROFESSIONAL CONTRIBUTIONS

AUTHOR OF LEGAL COMMENTARIES• “Treatise on FERA - Law and Practice” (Third Edition) published in two volumes.

• “Treatise on FEMA - Law and Practice” [Second (2012) Edition] published in two volumes.

• Editor: “Law of Income-tax”- by Sampath Iyengar (Ninth Edition) published in seven volumes.

• “Treatise on Consumer Protection Law” - Law and Practice (Second Edition).

EDUCATIONAL• Doctorate in Law from the University of Mumbai.

• Invitee lecturer at the University of Mumbai on International Business Law for LL.M. Degree Course.

PRESENTATIONS made on International Taxation, Direct Tax Laws, International Arbitration, FERA, FEMA, Prevention of Money Laundering Act, and Consumer Protection at seminars and conferences held under the auspices of: Ministry of Home Affairs, International Fiscal Association, Institute of Chartered Accountants of India, Chamber of Income-tax Consultants, Bombay Chartered Accountants’ Society, Tax Advocates’ Association, Gujarat, Gujarat Chamber of Commerce, Ahmedabad, Bombay Management Association, Forum of Free Enterprise.

ARTICLES contributed on International Taxation, Direct Taxes, Foreign Investment, FERA, International Arbitration and Consumer Protection Law and various other legal subjects in Economic Times, Bombay Chartered Accountants’ Society Journal, Income-tax Review (of Chamber of Income-tax Consultants, Mumbai), Chartered Accountants’ Journal.




Dr. Dilip K. Sheth

8/4/2014

1

BOMBAY CHARTERED ACCOUNTANT’S SOCIETY

18TH INTERNATIONAL TAX & FINANCE CONFERENCE

CHENNAI

SATURDAY, 16 AUGUST 2014

PREVENTION OF MONEY-LAUNDERING ACT, 2002 OVERVIEW AND IMPACT

DR DILIP K. SHETHB.Com (Hons), LL.M., FCA, Ph.D (Law)

PREVIOUS PMLA PRESENTATIONS BY DR DILIP K. SHETH

Sr Presentation made to Date PMLA Amendments

1. Home Ministry

[PMLA – The Road to 21st CenturyArmageddon – Audit and ControlAspects]

25-6-05 1-7-05: [4 changes]

2. BCAS – Advance FEMA Workshop

[PMLA Overview and the Need– with Case studies]

28-6-08 1-6-09:[8 changes]

3. ICAI, WIRC – PMLA - Full daySeminar

[Financial Action Task Force, Paris– Investigation in International Cases]

11-4-09 15-2-13:[9 changes]

1



8/4/2014

2

PMLAPREVENTION OF MONEY-LAUNDERING ACT, 2002

- OVERVIEW AND IMPACT

SynopsisOVERVIEW

• PREVIOUS PMLA PRESENTATIONS

• MONEY-LAUNDERING IS CURRENTLY IN NEWS

• PREAMBLE

• LEGISLATIVE HISTORY

• IMPORTANT DEFINITIONS

• SUBSTANTIVE PROVISIONS

• PROCEDURAL PROVISIONS

• RULES

IMPACT

• SCHEDULED OFFENCE : PART A: PRACTICAL SITUATIONS

• IMPORTANT ISSUES DECIDED BY COURTS

2

PMLA

MONEY LAUNDERING IS CURRENTLY IN NEWS

1 26-4-14 ED Notice to former NALCO CMD for alleged Money Laundering

2 26-4-14 ED files Money Laundering charges against Dayalu, Kani, Raja inDB payment to KTV

3 2-5-14 NSEL Scam : ED says PMLA does not allow liquidation of assetsattached by ED as they are vested in UoI

4 2-5-14 ED to bring back $ 13-mn assets attached abroad

5 6-5-14 ED registers Money Laundering charges against Jindal, Rao andother Coalgate persons/Cos

6 13-5-14 Trade-linked Money Laundering sees rise, Rs 1,800 Cr routed7 4-6-14 Kani pleads not guilty in Money Laundering case

8 10-6-14 Dayalu Ammal seeks discharge in Money Laundering case9 27-6-14 Creation of company as a sham or clock to convert public money

for personal use or as SPV for acquiring control over Rs. 2,000 crworth of the assets of a defunct company

10 2-7-14 Coal Scam: ED attaches assets of more companies under PMLA

11 7-7-14 News Hour Debate : National Herald Case12 16-7-14 SEBI to recover Rs. 3,000 cr from five Satyam Executives

3PMLA

MONEY LAUNDERING IS CURRENTLY IN NEWS

1 26-4-14 ED Notice to former NALCO CMD for alleged Money Laundering

2 26-4-14 ED files Money Laundering charges against Dayalu, Kani, Raja in DB paymentto KTV

3 2-5-14 NSEL Scam : ED says PMLA does not allow liquidation of assets attached byED as they are vested in UoI

4 2-5-14 ED to bring back $ 13-mn assets attached abroad

5 6-5-14 ED registers Money Laundering charges against Jindal, Rao and other Coalgatepersons/Cos

6 13-5-14 Trade-linked Money Laundering sees rise, Rs 1,800 Cr routed

7 4-6-14 Kani pleads not guilty in Money Laundering case

8 10-6-14 Dayalu Ammal seeks discharge in Money Laundering case

9 27-6-14Creation of company as a sham or clock to convert public moneyfor personaluse or as SPV for acquiring control over Rs. 2,000 cr worth of the assets of adefunct company

10 2-7-14 Coal Scam: ED attaches assets of more companies under PMLA

11 7-7-14 News Hour Debate : National Herald Case

12 16-7-14 SEBI to recover Rs. 3,000 cr from five Satyam Executives

13 5-8-14 NSEL Scam: EOW charges Jignesh Shah under I.P.C 120-B, 467,471

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8/4/2014

3

PMLA

TO PREVENTMONEY-LAUNDERING

TO PROVIDE FOR• CONFISCATION OF

PROPERTY– DERIVED FROM– INVOLVED IN

MONEY-LAUNDERING• INCIDENTAL/CONNECTED

MATTERS

PREAMBLE

AN ACT

4

• ENACTED : 17-1-03

• BROUGHT INTO FORCE : 1-7-05

• AMENDED

1st (2005) : [ 4 changes ] : 1-7-05

2nd (2009) : [ 8 changes ] : 1-6-09

3rd (2013) : [ 9 changes ] : 15-2-13

PMLA

LEGISLATIVE HISTORY

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PMLA

AMENDMENTS

Sr Year Date No. of Changes Substantive Procedural

1 2005 : 1-7-05 : 4 Changes : - 4

2 2009 : 1-6-09 : 8 Changes : 3 5

3 2013 : 15-2-13 : 10 Changes : 5 5

6

PMLASUBSTANTIVE AMENDMENTS : 2009

1-6-09

1 Reporting regime expanded to cover• Institutions like FFMC, MTSP• Business activities, such as, Casinos

2 Part A of the Schedule expanded to cover• Specific offences under 28 Laws

3 Part C added to Schedule to cover• Offences with cross-border implications; and

which are Specified in Part A [28 Laws]; or Specified in Part C [Chap XVII of IPC: S. 378-462]

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SUBSTANTIVE AMENDMENTS: 201315-2-13

1. New concept: “corresponding law” introduced:• to link provisions of Indian Law with foreign laws• to provide transfer of proceeds of foreign offence to India

2. New Concept: “reporting entity” introduced:• to include

- banking company- financial institution- intermediaries- persons carrying on designated business / profession

3. Expansion of definition of “money-laundering”• to include

- concealment- acquisition of proceeds of crime, as criminal activities- possession- use

• to remove ceiling of Rs. 5 lakhs on fine4. Reporting entities, its designated directors, employees made responsible for

omissions/commissions in reporting obligations5. Rebuttable presumption introduced that proceeds of crime are involved in money-laundering

8PMLA

PMLAIMPORTANT DEFINITIONS

Sr Definition Section

1 Money Laundering 3

2 Offences of cross border implications 2(ra)

• payment system 2(rb)

• payment system operator 2(rc)

3 Person 2(s)

4 Person carrying on designatedbusiness or profession

2(sa)

• precious metal 2(sb)

• precious stone 2(sc)

5 Proceeds of crime 2(u)

6 Property 2(v)

7 Reporting entity 2(wa)

8 Scheduled Offence 2(y)

9 Transfer 2(za)

10 Value 2(zb)

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OFFENCE OF MONEY-LAUNDERING(S. 3)

THE PROCEEDS OF CRIME

WHOSOEVER

KNOWINGLY IS A PARTY IN

ATTEMPTS TO INDULGE IN

CONNECTED WITH

DIRECTLY/INDIRECTLY

KNOWINGLYASSISTS IN

IS ACTUALLYINVOLVED IN

ANY PROCESS/ACTIVITY

… Contd next page

10

1 [INCLUDING CONCEALMENT POSSESSION ACQUISITION; OR USE

SHALL BE GUILTY OF

AS UNTAINTED PROPERTY

OFFENCE OF MONEY- LAUNDERING

1. Substituted for "proceeds of crime and projecting" w.e.f. 15-2-13

… Contd

ANDPROJECTING/CLAIMING] IT

10-A



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PMLA

THREE STAGES IN MONEY-LAUNDERING ACTIVITIES THAT ESTABLISH

CONNECTIVITY OF TRANSACTIONS QUA THE SUBJECT PROPERTY

PLACEMENT

• Financial system• Retail economy• Smuggling out of

Country

• Deposits• Money Transfers• Money orders• Traveller’s cheques

LAYERING

• Layer 1• Layer 2• Layer 3• Layer 4

• Outbound Electronic Fund Transfers To ‘bank secrecy haven’; or To countries with lax reporting

system

INTEGRATION

• Legitimate Economy• Legitimate Financial System• Other Assets

[Cited in B Rama Raju v UoI [2011] 108 SCL 491 (AP)]

[Noted in Alive Hospitality and Foods P Ltd v UoI : 31-7-13 (Guj)]

11

2(ra) “offence of cross border implications”, means-

(i) any conduct by a person at a place outside India which constitutes an offence at that place and

which would have constituted a scheduled offence [an offence specified in Part A, Part B or Part C of the Schedule],had it been committed in India and

if such person transfers in any manner the proceeds of such conduct or part thereof to India; or

(ii) any offence specified in Part A, Part B or Part C of the Schedule

which has been committed in India and the proceeds of crime [s.2(u)], or part thereof have been transferred to a place outside India or any attempt has been made to transfer the proceeds of crime, or part thereof from India to a place outside India.

Explanation - Nothing contained in this clause shall adversely affect any investigation, enquiry, trial or proceedingbefore any authority in respect of the offences specified in Part A or Part B of the Schedule to the Act before thecommencement of the Prevention of Money-Laundering (Amendment) Act, 2009; (i.e. 1-6-09)

2(rb) “payment system” means a system that enables payment to be effected between a payer and a beneficiary, involving

• clearing,• payment or• settlement service or• all of them.

Explanation - For the purpose of this clause, “payment system” includes the system enabling credit card operations, debit card operations, smart card operations, money transfer operations or similar operations;

PMLAOFFENCE OF CROSS BORDER IMPLICATIONS: 2(ra)

PAYMENT SYSTEM: 2(rb)

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8/4/2014

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PMLAPAYMENT SYSTEM OPERATOR

[2(rc)]

2(rc) "payment system operator" means a person who operates a payment system and such person

includes his overseas principal.

Explanation – for the purposes of this clause, “overseas principal” means,-

(A) In the case of a person, being an individual, such individual residing outside India, who owns or

controls or manages, directly or indirectly, the activities or functions of payment system in India;

(B) In the case of a Hindu undivided family, karta of such Hindu undivided family residing outside

India who owns or controls or manages, directly or indirectly, the activities or functions of

payment system in India;

(C) In the case of a company, a firm, an association of persons, a body of individuals, an artificial

juridical person, whether incorporated or not, such company, firm, association of persons, body

of individuals, artificial juridical person incorporated or registered outside India or existing as

such and which owns or controls or manages, directly or indirectly, the activities or functions of

payment system in India;

13

PMLA

PERSON[2(S)]

“Person” includes -(i) an individual,

(ii) a Hindu undivided family,

(iii) a company,(iv) a firm,(v) an association of persons or a body of individuals, whether incorporated or

not,(vi) every artificial juridical person not falling within any of the preceding sub-

clauses, and(vii) any agency, office or branch owned or controlled by any of the above

persons mentioned in the preceding sub-clauses;

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2(sa) “Person carrying on designated business or profession” means, -(i) a person carrying on activities for playing games of chance for cash or kind, and includes

such activities associated with casino;(ii) a Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908 (16 of

1980), as may be notified by the Central Government;(iii) real estate agent, as may be notified by the Central Government;(iv) dealer in precious metals, precious stones and other high value goods, as may be notified

by the Central Government;(v) Person engaged in safekeeping and administration of cash and liquid securities and behalf

of other persons, as may be notified by the Central Government; or(vi) Person carrying on such other activities as the Central Government may, by notification, so

designate, from time to time;

2(sb) “precious metal” means gold, silver, platinum, palladium or rhodium or such other metal asmay be notified by the Central Government;

2 (sc) “precious stone” means diamond, emerald, ruby, sapphire or any such other stone as may benotified by the Central Government;

PMLA

PERSON CARRYING ON DESIGNATED BUSINESS OR PROFESSION: 2(sa)PRECIOUS METAL: 2(sb)PRECIOUS STONE: 2(sc)

15

• DERIVED/OBTAINED• DIRECTLY/INDIRECTLY• BY ANY PERSON [s. 2(s)]

AS A RESULT OF

PROCEEDS OF CRIME[2(u)]

VALUE [s. 2(zb)]

OF ANY SUCH PROPERTY

ANY PROPERTY[s. 2(v)]

• CRIMINAL ACTIVITY• RELATING TO A SCHEDULED

OFFENCE[s. 2(y) r.w. Schedule]

PMLA

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8/4/2014

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“Property” means

• any property or assets of every description,

• whether corporeal or incorporeal,

• movable or immovable,

• tangible or intangible and includes

• deeds and instruments evidencing title to, or interest in, such property

or assets, wherever located.

Explanation – for the removal of doubts, it is hereby clarified that the term

“property” includes property of any kind used in the commission of an

offence under this Act or any of the scheduled offence;

PMLA

PROPERTY[2 (v)]

17

“reporting entity” means

• a banking company [S.2(e)],

• financial institution [S.2(l)],(Substituted w.e.f. 15-2-13)

• Intermediary [S.2(n)], or(Substituted w.e.f. 15-2-13)

• person carrying on a designated business or profession [S.2(sa)];(Inserted w.e.f. 15-2-13)

PMLA

REPORTING ENTITY[2 (wa)]

[Inserted w.e.f. 15-2-13]

18



8/4/2014

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“Scheduled offence” means –

(i) the offences specified under Part A of the Schedule; or

1[(ii) … …] or

(iii) the offences specified under Part C of the Schedule;

PMLA

SCHEDULED OFFENCE[2 (y)]

19

1. Omitted w.e.f. 15-2-13

“Transfer” includes• sale,• purchase,• mortgage,• pledge,• gift,• loan or• any other form of transfer of

right, title, possession or lien;

PMLA

TRANSFER[2 (za)]

20



8/4/2014

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“Value” means• the fair market value of any property on the date

of its acquisition by any person, or• if such date cannot be determined, the date on which such property is possessed

by such person.

21PMLA

VALUE[2(zb)]

PMLASUBSTANTIVE PROVISIONS

Section Subject-matter3 Offence of money-laundering4 Punishment for money-laundering

5 & 8(3) Provisional Attachment of property & Adjudication to confirm the Attachment

19 Power to arrest22 Presumption as to records/property23 Presumption in inter-connected transactions24 Burden of proof41 Civil Court not to have jurisdiction71 Act to have overriding effect

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8/4/2014

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PMLA

PROCEDURAL PROVISIONS

Sections Subject-matter

5-11 Attachment, Adjudication and Confiscation

12-15 Obligations of – Banking Companies– Financial Institutions– Intermediaries

16-21 Summons, Searches and seizures

25-42 Appellate Tribunal

43-47 Special Courts

48-54 Authorities

55-61 Reciprocal Arrangement for Assistance in certain mattersProcedure for Attachment and Confiscation of Property

62-75 Miscellaneous

23

PMLA

RULES

Sr Year Subject-matter1 2005 • Provisional Attachment of property

• Confiscated Properties• Maintenance and Verification of Records of Identity

of Clients• Search & Seizure, Impounding & Custody of Records• Arrest of a Person• Retention of Seized Property• Maintenance of Records Authenticated outside India• Appeal

2 2007 • Appellate Tribunal – Chairperson and Members• Adjudicating Authorities – Chairperson and Members• Adjudicating Authorities – Employees

3 2008 • Appellate Tribunal – Employees

4 2013 • Adjudicating Authorities - Procedure

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• IPC• Terrorist Activities, Explosives, Arms, etc.• Narcotic Drugs• Prevention of Corruption• SEBI• Customs• Emigration• Passports• Copyrights• Trademarks• Information Technology• Environment Protection• Water Pollution• Air Pollution

SCHEDULED OFFENCE [2(y)] PART-A: PRACTICAL SITUATIONS

PART-CCROSS-BORDEROFFENCES - S. 2(ra)

PART-A28 LAWS

PMLA 25

PART-A28 LAWS

OFFENCES AGAINST PROPERTY

IPC: 378-462

• Theft• Extortion• Criminal Breach of Trust• Cheating• Criminal Misappropriation• Receiving Stolen Property

PMLAIMPORTANT ISSUES DECIDED BY COURTS

1 Can a property owned/possessed by a person not charged under PMLA, be attached and confiscated?

2 Are adjudication provisions (section 8) invalid on the ground of:

• vagueness• incoherence as to onus and standard of proof• ambiguity regarding criteria to determine nexus between property attached and the offence of

money-laundering• exclusion of mens rea (knowledge of criminality) in acquisition of property?

3 Can a person be dispossessed of immovable property upon confirmation of provisional attachment even if he is not convicted for money laundering?

4 Is presumption u/s 23 in cases of interconnected transactions unreasonably restrictive, excessively disproportionate and hence, invalid?

5 Does the burden of proving u/s 24 that proceeds of crime are untainted property(a) apply at both stages

(i) prosecution and trial of person charged u/s 3(ii) proceedings for attachment and confiscation?

(b) apply also to the person not accused of offence u/s 3? 6 Does the presumption u/s 23 in inter-connected transactions apply to both:

(i) person accused of offence u/s 3; and(ii) person not so accused? [B Rama Raju v UoI [2011] 108 SCL 491: 4-3-11 (AP)

26

… Contd next page



8/4/2014

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PMLAIMPORTANT ISSUES DECIDED BY COURTS

7 Can a C.A. be punished under PMLA alongwith his client?

[CBI v Vijay Sai Reddy: Cr A No 729/2013: 9-5-13: SC]

8 Can a person facing criminal charge in a trial court raise the plea of double jeopardy in terms of Article20(2) of the Constitution if summoned under PMLA?

[M Shobana v The Asst Director: w/p 14083/2013: 25-9-13: Mad]

9 Can a person claim the benefit of double jeopardy on the ground that the proceedings under PMLAregarding the seized properties cannot be allowed to continue after his acquittal from criminal chargesunder IPC?

[Smt Janata Jha v Asst Director, DE: CrMC 114/2011: 16-12-13: Orissa]

10 At the stage when a person is asked to show cause why the properties provisionally attached shouldnot be declared property involved in money-laundering, can he claim the right of cross-examining thewitness on whose statement complaint u/s 5(5) of PMLA was made?

[Arun Kumar Mishra v UoI: CM 2003/2014: 31-1-14:Delhi]

26 A

… Contd

8/4/2014

1

PMLA23. PRESUMPTION IN INTER-CONNECTED

TRANSACTIONS

Where money-laundering involves two or more inter-connected transactions and one or more such transactions isor are proved to be involved in money-laundering, then forthe purposes of adjudication or confiscation 1[under section8 or for the trial of the money-laundering offence, it shallunless otherwise proved to the satisfaction of theAdjudicating Authority or the Special Court], be presumedthat the remaining transactions form part of such inter-connected transactions. [Emphasis supplied]

1. Substituted by PML (Amendment) Act, 2012, for “under section 8, it shall, unless otherwise provedto the satisfaction of the Adjudication Authority” (w.e.f. 15-2-2013).

27

PMLA24. BURDEN OF PROOF

1[Burden of Proof - In any proceeding relating to proceeds ofcrime under this Act,-

(a) In the case of a person charged with the offence of money-laundering under section 3, the Authority or Court shall,unless the contrary is proved, presume that such proceedsof crime are involved in money-laundering; and

(b) In the case of any other person the Authority or Court, maypresume that the proceeds of crime are involved in money-laundering.] [Emphasis supplied]

1. Substituted by PML (Amendment) Act, 2012 (w.e.f. 15-2-2013). Prior to its substitution, S.24read as under:- “24 Burden of proof- When a person is accused of having committed theoffence under section 3, the burden of proving that proceeds of crime are untainted propertyshall be on the accused.”

28



8/4/2014

2

PMLACONSTITUTION OF INDIA

ARTICLE 20PROTECTION IN RESPECT OF CONVICTION FOR OFFENCES

(1) …

(2) No person shall be prosecuted and punishedfor the same offence more than once.

(3)…

[Emphasis supplied]

29

8/4/2014

1

PMLA23. PRESUMPTION IN INTER-CONNECTED

TRANSACTIONS

Where money-laundering involves two or more inter-connected transactions and one or more such transactions isor are proved to be involved in money-laundering, then forthe purposes of adjudication or confiscation 1[under section8 or for the trial of the money-laundering offence, it shallunless otherwise proved to the satisfaction of theAdjudicating Authority or the Special Court], be presumedthat the remaining transactions form part of such inter-connected transactions. [Emphasis supplied]

1. Substituted by PML (Amendment) Act, 2012, for “under section 8, it shall, unless otherwise provedto the satisfaction of the Adjudication Authority” (w.e.f. 15-2-2013).

27

PMLA24. BURDEN OF PROOF

1[Burden of Proof - In any proceeding relating to proceeds ofcrime under this Act,-

(a) In the case of a person charged with the offence of money-laundering under section 3, the Authority or Court shall,unless the contrary is proved, presume that such proceedsof crime are involved in money-laundering; and

(b) In the case of any other person the Authority or Court, maypresume that the proceeds of crime are involved in money-laundering.] [Emphasis supplied]

1. Substituted by PML (Amendment) Act, 2012 (w.e.f. 15-2-2013). Prior to its substitution, S.24read as under:- “24 Burden of proof- When a person is accused of having committed theoffence under section 3, the burden of proving that proceeds of crime are untainted propertyshall be on the accused.”

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8/4/2014

1

PMLA

THE SCHEDULE

PARAGRAPH 1

OFFENCES UNDER INDIAN PENAL CODE

Section Description of offence120-B Criminal conspiracy420 Cheating467 Forgery of valuable security, will, etc.

PARAGRAPH 11

OFFENCES UNDER SEBI ACT, 1992

Section Description of offence

12-A Prohibition of manipulative and deceptive devices, insider trading

30



Why should we think ‘Big’?The beauty about aiming big is that we always win.

Really?

Of course!!! This doesn’t mean we get what we dreamt and planned. That never happens.

In the army, when they plan a strike, they have a plan ‘A’. They also have fall back plans titled plans ‘B’ and ‘C’. The soldiers know, things will not go as per plan. There will be events that cannot be anticipated. There will be twists and turns they have not thought off. A part of plan ‘A’ will work. A small portion of plan ‘B’ and ‘C’ might also be used. Having said this, improvisations and learnings will help to create a plan ‘D’ on the spot. What is important is that planning for plans ‘A’, ‘B’ and ‘C’ puts them in the frame to think and implement plan ‘D’.

Even if things don’t work out, we never ‘completely’ fail. The successes we have, always outweighs our losses.

Say I decide to express my thoughts. I chose FB as a medium. I write ‘one’ post. However that goes, I am not likely to win or lose much. Instead, lets say I decide to write a whole book, based on my experiences and insights.

There’s a good chance I will fail to finish, or take ten times longer than I expected, or there is a cost over run, or I write utter garbage that never makes it past seven unhappy relatives and three friends.

But, in the process, I would have pushed my skills beyond my comfort zones, my language would have improved, my time management skills would have been honed, my life would have been scanned, many forgotten lessons would have got ingrained, and I would have grown immensely. I would have grown more in this one exercise than most people do in their lifetime.

When I keep thinking big and acting on it, eventually, something is going to work. And we all need that one big win to set us for life; to reveal our potentials to us; to be the turning point and inspiration for thousands.

If you think small and play smaller, chances are you are going to be frustrated and sad, consistently. “If only...” will be your favourite phrase.

Working hard is not enough. Being smart is not enough. Really wanting stuff is not enough. They are needed but they are not enough. Thinking BIG and acting on it is paramount.

The thing that will hold you back the most, throughout your entire life, are never resources or education or intelligence. The thing that will hold you back most certainly will be yourself. You will know what to do. You will want to do it. And yet you will find yourself refusing to think big and acting on it.

Most people will safely (for their ego) and reflexively blame the world when our life is small - “My boss is partial”, “the industry is bad”, “luck is rotten” etc.

Externalising leads to denial and pain. Internalizing leads to solutions.

By internalising, our energy will be directed on things that improve our life, and we will free ourselves from the tyrannical grip of sadness.

Dream big. Create efforts. Defy odds.

Rare people do all these things in sync. That is exactly why rare people live to their potentials. Just by attempting, you’ll be putting yourself at an huge and fair advantage. Now go forth and conquer. What are you waiting for? Go ahead and climb your Mt. Everest.

th international tax & finance conference, 2014 1 material/itf2014/dilip k...fera, fema,...

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