• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • REVIEWS
    • TRAILERS
  • BUSINESS
  • CELEBRITIES
  • HOLLYWOOD
  • REGIONAL
  • TV
  • MUSIC
  • TOP LISTS

Bollywood Presents

Exotic locations where popular Bollywood movies were shot

You are here: Home / Film & Media Business / Are Gangsters and Politicians Using Bollywood Film Industry to Convert “Black” Money into “White”?

Are Gangsters and Politicians Using Bollywood Film Industry to Convert “Black” Money into “White”?

November 9, 2016 by BollywoodPresents Team

film funding

Bollywood’s fascination for the underworld can be clearly seen in the movies, but now the Indian I-T department has also revealed how the film industry is being used (by gangsters and politicians) to convert ‘black’ (unaccounted) money into “white”.

The fact that the rich in India use their money to produce films is known to many and that is why the Income Tax Department always keeps a watch on Bollywood producers, distributors, and actors. But recently they sent out a report that clearly showed how the wealthy, associated with the glitzy world of the silver screen, avoid taxes with dodgy dealings through hawala and hot-money routes.

The first-of-its-kind I-T analysis establishes major evasion practices such as:

  • Suppression of receipts from movies
  • Using ancillary sources
  • Inflation of expenses
  • Huge amount of out-of-books payments/receipts

All these reveal a a “well-established practice rampant in Bombay film industry.”

The report said that Bollywood is highly exposed to the black economy and poses myriad challenges to the tax administration.


In 2011, a leaked cable released by Wikileaks had spoken of the film industry’s underworld connections, and that “it welcomed funds from gangsters and politicians looking for ways to launder their ill-gotten gains, known in India as ‘black money’”. In 2012, a sting operation by news website Cobrapost had caught leading producers and directors allegedly admitting on camera how the industry is being used to convert “black” money into “white”.

  • Director Anubhav Sinha who was caught in the Cobrapost sting allegedly agreeing to launder money.
  • Kumar Sanu produced a film Utthaan, and it was allegedly made using only cash. “At the end of each day,” a production assistant says, “a vehicle filled with bags of cash would be delivered to not only workers and technicians, but also senior artists.”
  • A senior filmmaker says: “In my previous film [a sex thriller], we paid our DOP (director of photography) nearly Rs. 25 lakh in cash to avoid dual taxation issues as he lived in the United States.”
  • Some major production houses have registered their companies overseas, thereby arousing suspicion among taxmen.

These dodgy tax practices stood validated from the personal account of scores of technicians, line producers, distributors, confirming the practices as commonplace on film sets.

According to the report’s findings, a film is produced and supplied through a complex channel of studios, distributors, exhibitors and artists, organised around star value and fame. The process of accumulating ill-gotten funds starts with production. The producer lines up ad hoc unaccounted funds in the guise of loans under bogus names. All the bogus credits and hawala entries are offset by ‘bogus debits and factious expenses.

“The core issue is really of financing: unless a ‘star’ signs the film, banks stay away from funding. Funding in an ad hoc manner, from property dealers and other business sources, leaves clear room for grey transactions carried out of books,” says a sought-after production assistant. “The black-to-white ratio in medium-budget films not financed by banks but by multiple, small financier ranges is 60:40, even much higher in some cases,” says the source.

With inputs from thehindu.com

Related Posts:

  • Bollywood Celebs in politics: Latest updates and trivia
  • Deepika Padukone visits JNU to express solidarity
  • Singer Abhijeet was sidelined because he raised his…
  • Kartik Aaryan talks about his journey to the top

Filed Under: Film & Media Business

RELATED POSTS

srk family

Shah Rukh Khan’s car injures photographer on way to Alia Bhat’s birthday bash

Shah Rukh Khan’s car ran over a photographer’s leg, close to Alia Bhatt’s residence where SRK was headed to attend her birthday bash. SRK (who has become cautious after the death of a person at Vadodara station) was shocked to see that his car had ran over a photographer’s leg. However, he ensured the photographer […]

sea tunnel

Norway to build world’s first sea tunnel for ships

Road tunnels are common, but what about a tunnel in the sea through which ships can pass? Well, Norway is planning to build one. Norway plans to build the world’s first sea tunnel for ships, which will pass through a mountain (the Stad peninsula) in western Norway. The Stadhavet Sea is the most exposed and […]

dilip kumar & saira banu

Legal battle won, Dilip Kumar’s bungalow to give way to multi-storeyed building, will include museum

Having won the court case over the Pali Hill bungalow, Dilip Kumar’s bungalow will now make way for multi-storeyed building, which will also house a museum dedicated to Dilip Kumar. The prime property will now be developed by M/s Black Rock. “Dilip Sahab is the owner of the property and of course the developers will […]

rishi kapoor

“Khullam Khulla – Rishi Kapoor Uncensored”, Rishi Kapoor’s autobiography

Veteran actor Rishi Kapoor launched his autobiography “Khullam Khulla – Rishi Kapoor Uncensored”. The event was held at The Taj Mahal Hotel in New Delhi. Rishi has co-authored the book with Meena Iyer. Rishi Kapoor, who is known to speak his mind, and doesn’t mind voicing his opinion on socio-political issues (which has landed him […]

srk family

Superstar SRK draws the biggest crowd wherever he goes

Shahrukh Khan recently spent time at the Symbiosis International University (in Viman nagar, Pune). But SRK was not there to collect any honorary degree; he was there to promote his latest film ‘Raees’. We all know that Shahrukh is a huge star, but to get a real idea of it, just take a look at […]

october hindi movie

Varun Dhawan and Shoojit Sircar’s ‘October’ impresses audience as well as critics

Varun Dhawan’s October has impressed the audience as well as critics, and many are calling the movie as Shoojit Sircar’s best movie till date. For Varun Dhawan, the movie gave him another opportunity to showcase his versatility as an actor. October is not a Love Story, but rather a story about love. Reviews Ratings:4/5 Review […]

stop piracy

Top Bollywood production hiring cyber-security experts to combat piracy

Filmmakers nowadays have to spend money and efforts not only on the films promotions before a release, they also have to ensure that all the requisite safeguards are in place to ensure any pirated copy of their film does not get uploaded on the internet. Cyber security experts are in great demand everywhere, and now […]

Ranu mondal train singer

Train station singer records her first song, thanks to Himesh Reshammiya

Ranu Maria Mondal got a first-hand experience of the power of the internet. A two-minute viral clip of her singing Lata Mangeshkar’s Ek Pyar Ka Nagma Hai helped her record her first song (for Himesh Reshammiya’s upcoming film). She is also being getting several talent show offers. 59 year old Ranu Mandal used to sing […]

Bollywood Comes to Jacksonville, Florida

Jacksonville, located in Florida, US, is popular for film shooting because of its beaches, lovely gardens, downtown look and little traffic which makes shooting easier. Several documentary and short films, feature films and television series have been filmed in Jacksonville (some portrayed it as another city). And now even Bollywood has reached Jacksonville, which was […]

Want to be an artist? Be a happy one, not a struggling (poor) one, says India’s richest celebrity

Here’s some advice regarding money from India’s richest film celebrity ‘Shahrukh Khan’ – “There’s nothing romantic about being poor. And don’t philosophise until you’re rich first. Make money and be a happy artist, not a struggling artist.” Almost every year now, you see King Khan’s name listed among the word’s richest celebrities – be it […]

Primary Sidebar

LOOKING FOR SOMETHING?

RECENT POSTS

movie trailers

Top Forthcoming Bollywood Movies (& Trailers): Upcoming Entertainers for 2021

Want to know when the next entertainer of your favorite star is going to be released? Want to plan … [Read More...] about Top Forthcoming Bollywood Movies (& Trailers): Upcoming Entertainers for 2021

National Museum of Indian Cinema (NMIC)

Social Impact of Bollywood on Indian culture

Movies are one of the most influential tools of communication and society does learn a few things or … [Read More...] about Social Impact of Bollywood on Indian culture

bollywood rapes

Representation of women in Bollywood Films

Women in Bollywood films have been subject to stereotypes and objectification, and appeared in … [Read More...] about Representation of women in Bollywood Films

Music Scene in Saudi Arabia

How's the music Scene in Saudi Arabia. Is it really frowned upon? Read more here. Young musicians in … [Read More...] about Music Scene in Saudi Arabia

Shabana Azmi

Shabana Azmi: One of the finest actors of Indian cinema

Shabana Azmi, an alumnus of the Film and Television Institute of India (FTII) of Pune, made her film … [Read More...] about Shabana Azmi: One of the finest actors of Indian cinema

war movie

Here’s how much Hrithik Roshan was paid for his 2019 hit film ‘War’

Hrithik Roshan is a superstar in Bollywood and is among the highest paid actors in the film … [Read More...] about Here’s how much Hrithik Roshan was paid for his 2019 hit film ‘War’

sooryavanshi movie

Bollywood facing losses of 5000+ crore due to pandemic lockdown

Almost everybody associated with the film industry is despondent about the future. With COVID-19 … [Read More...] about Bollywood facing losses of 5000+ crore due to pandemic lockdown

Money Scandals

Indian film celebrities caught in Tax Controversies

In Bollywood and other film industries in India, there's a saying that "there's no business like the … [Read More...] about Indian film celebrities caught in Tax Controversies

celebrity endorsements

It’s 2020 and Bollywood is still obsessed with fair skin

Makers of the upcoming movie 'Khaali Peeli', starring Ananya Panday and Ishaan Khatter, are facing … [Read More...] about It’s 2020 and Bollywood is still obsessed with fair skin

Kangana Ranaut's pali hill office

BMC demolish illegal constructions by Bollywood actors & filmmakers

BMC begins the demolition of illegal alterations to Kangana Ranaut's office in Bandra. The … [Read More...] about BMC demolish illegal constructions by Bollywood actors & filmmakers

Amazon Fashion

Useful Read

  • Who coined the term ‘Bollywood’?
  • Dadasaheb Phalke (Father of Indian Cinema)
  • Evolution of Hindi Films
  • Social Impact of Bollywood on Indian culture

Footer

Upcoming Bollywood Movies

  • Love Aaj Kal Movie
  • Hum Bhi Akele Tum Bhi Akele Movie
  • Hawayein Movie
  • Shubh Mangal Zyada Saavdhan Movie
  • The Hundred Bucks Movie
  • BHOOT: Part One – The Haunted Ship Movie
  • Haunted Hills Movie
  • 'O' Pushpa I Hate Tears Movie
  • Guns Of Banaras Movie
  • Thappad Movie

Bollywood Movie Reviews

  • Malang Review
  • Jawaani Jaaneman Review
  • Panga Review
  • Street Dancer 3D Review
  • Tanhaji – The Unsung Warrior Review
  • Chhapaak Review
  • Good Newwz Review

Top Celebs

  • Ajay Devgn
  • Kajol
  • Saif Ali Khan
  • Shraddha Kapoor
  • Varun Dhawan
  • Deepika Padukone
  • Kangana Ranaut
  • Tabu
  • Aditya Roy Kapur
  • Disha Patani
  • Rajinikanth

About Us

  • About Us
  • Contact Us
  • Write for Us
  • Privacy Policy
  • Disclosure
  • Sitemap
  • Newsletter

Copyright © 2022 · News Pro on Genesis Framework · WordPress · Log in