TheNational
Indian ambassador sets an austere example
http://www.thenational.ae/apps/pbcs.dll/article?AID=/20090925/NATIONAL/709249848/1010
Praveen Menon
Last Updated: September 25. 2009 12:18AM UAE / September 24. 2009 8:18PM GM
DUBAI // The Indian ambassador to the UAE strives to live an austere life and avoid large, extravagant events, particularly in light of the drought that is affecting much of India at the moment.
Talmiz Ahmad cited the “obscene display of wealth” by the expatriate community, which he called inappropriate.
“I personally believe both as part of human values and indeed my own personal commitment that we have to be austere in our personal life and our public life,” Mr Ahmad said.
This year, more than half of India’s districts have been hit by droughts in what is described as the driest monsoon season in several years.
Almost 700 million people are expected to be affected.
Several Indian ministers have initiated an austerity drive led by the ruling Congress party.
Its chief, Sonia Gandhi, urged her party leaders to give up one-fifth of their salaries. She is travelling economy class, and her son and Congress general secretary, Rahul Gandhi, have renounced flight travel and taken the train between states, further reinforcing the austerity message among politicians, bureaucrats and affluent Indians.
Critics have dismissed these gestures as political stunts, but Mr Ahmad said of the espousal of austerity in India emerged from real concern over the failure of rainfall and consequent drought, a situation that exacerbated the impact of the global recession on the country.
“There is a very immediate requirement around us,” he said.
“India is a poor country. It has a very large number of extremely poor people. Display of wealth of any kind is offensive.”
Mr Ahmad made his comments in response to a question about the lifestyle of elite Indians in the UAE, who continue to organise grand parties and gatherings despite the poor living conditions and salaries of many of their compatriots and worsening food crises back home.
“I enforce it in my own life,” he said, “and by and large events that I attend I ensure that they are modest in ostentation.”
Mr Ahmad’s comments question the lifestyles of the large numbers of expatriate Indians in the Middle East and around the world, but he said he would not expect anyone else to follow his example.
“It’s not my business to tell others how to run their lives,” he said. “It’s not appropriate to be intrusive because then you intrude into freedom of other people. However, it is a universally accepted norm that vulgar display of wealth in a climate of poverty and deprivation is not appropriate, and it is indeed offensive. I am not referring to any specific event, but this is a general view.”
He acknowledged that for diplomats abroad, the situation is sometimes unavoidable. “There are certain norms of public conduct,” he conceded. “If I have a ministerial visit, I will host a banquet in a setting that is commensurate with seniority of guest. There is a fine line between vulgar display and stylish display. I would go for stylish display.”
Noting that Indian diplomats and senior officials often have to meet expectations outside the country, Mr Ahmad said the embassy’s National Day celebrations would be at the Hilton hotel in Abu Dhabi.
“We do have to engage with five-star culture,” he said, “but I avoid extremes of ostentatious display.”
Dubai and the UAE as a whole are often known as a hub for the affluent Indian community. Business tycoons, Bollywood stars and celebrities fly to Dubai for parties, gatherings and functions conducted by the large Indian community. Parties are often held in five-star hotels and plush auditoriums.
Fashion designers such as Manish Malhotra and others selling designer clothes and accessories have showrooms in Dubai that cater largely to the rich Indian community.
Mr Ahmad was not alone in his call for more austerity. Several noted Indian expatriates also have made the point that the fortunate few must not forget the many.
Sudhir Shetty, chief operating officer for global operations at the UAE Exchange, said: “I think more than 80 per cent of the Indians here live simple lives. However, it’s the elite 20 per cent who live expensive lives. No matter what you tell them, they will not compromise.”
Mr Shetty is also a prominent personality in the Indian community. “This kind of restraint unfortunately can’t be insisted upon,” he said. “I feel that expatriates should be careful, but also a lot more needs to be done by the Indian government locally if the problem of drought is to be resolved.”
K V Shamshudeen, chairman of Pravasi Bandhu Welfare Trust, who also ran a radio show advising Indians on financial problems, said there was “maximum need to be modest with spending”.
“Iftar parties and other festivities organised by the Indian community over the last few weeks have largely been for people who eat very well everyday,” he noted.
“We must remember that there are many poor Indians here and back home who do not get a decent meal.”
Meanwhile, middle-class families in the UAE sometimes forget what is going on at home.
“I must admit that I organised a grand party for a group of friends who came from the US last week,” said Anthony D’Souza, an engineering consultant who lives with his family in Bur Dubai. “We often are disconnected with realities in India and lead lavish lives here. I feel we must exercise control [spending] in such an environment.”
Please read the editorial in The National on this remark:
http://www.thenational.ae/section/OPINION?profile=1006
Friday, September 25, 2009
Don't Re-introduce User's Fee in Cochin Airport
PRAVASI BANDHU WELFARE TRUST
(Regd. In India No. 325/IV/2001)
Post Box No. 940, Sharjah, UAE
Mobile: 00971-50-6467801
www.pravasibandhu.com
Email: kvshams@gmail.com
January 15, 2009
Sri V S Achudanandan
Chief Minister of Kerala
Thiruvanandapuram
Dear Sir,
Cochin International Airport Limited (CIAL) was incorporated as a Public Limited Company under the Companies Act, 1956 on 30 March 1994, with equity participation from the Government of Kerala, Industrialists, Financial Institutions, Airport Service Providers and the Public - majority of them are non resident Indians totalling 11,000 from 30 countries. Cochin International Airport Limited (CIAL) has become the First-of-its-kind airport developed under the PPP model.
In the 11 members board of directors there are four state ministers, one chief secretary of Kerala and five prominent non-resident Indian business men and a well experienced managing director.
Among NRI investors there are thousands of very small investors who invested Rs 10,000 their hardened money with expectation of reasonable return way back 1995 in this dream project. Unfortunately they had to wait 11 years to get the maiden dividend of 10% in 2006.
Where as the investors and other NRIs was penalised with Users Fee when Cochin International Airport started the operation in 1999 as back lash and punishment for venturing such unique project in Kerala. But, NRIs from all over the world agitated against User’s Fee, as a result the Airport Authorities compelled to withdraw the User’s Fee.
Again the proposal to re instate the User Fee presented in last board meeting by some greedy board members including NRIs with the behind the seen support of the government and some resident investors. We could realise that Board Member like Mr. M A Yousef Ali opposed the proposal and kept pending for the time being. But we realised that the government also want to introduce the User’s Fee again to get bumper dividend every year, because this one the very few companies giving dividend to the government investment even though they invested hundred of companies in Kerala.
Kerala Finance Minister Shri T M Thomas Issac, keep of talking about development of Kerala with financial participation of non-resident Indians.
When CIAL invite investment from NRIs they offered many sweet promises, when the project had completed the CIAL bite back the NRIs.
So, we request the CIAL and all the Board Members of CIAL and resident shareholders don’t be greedy, please do not reinstate Users Fee. You must realise that if it implemented NRIs, will not sit ideal. Kerala Finance minister has planned to develop Kerala with NRI financial participation, the decisions to reinstate User’s Fee will jeopardise such proposals.
Thank you,
Yours truly,
For Pravasi Bandhu Welfare Trust
K V SHAMSUDHEEN
Chairman
(Regd. In India No. 325/IV/2001)
Post Box No. 940, Sharjah, UAE
Mobile: 00971-50-6467801
www.pravasibandhu.com
Email: kvshams@gmail.com
January 15, 2009
Sri V S Achudanandan
Chief Minister of Kerala
Thiruvanandapuram
Dear Sir,
Cochin International Airport Limited (CIAL) was incorporated as a Public Limited Company under the Companies Act, 1956 on 30 March 1994, with equity participation from the Government of Kerala, Industrialists, Financial Institutions, Airport Service Providers and the Public - majority of them are non resident Indians totalling 11,000 from 30 countries. Cochin International Airport Limited (CIAL) has become the First-of-its-kind airport developed under the PPP model.
In the 11 members board of directors there are four state ministers, one chief secretary of Kerala and five prominent non-resident Indian business men and a well experienced managing director.
Among NRI investors there are thousands of very small investors who invested Rs 10,000 their hardened money with expectation of reasonable return way back 1995 in this dream project. Unfortunately they had to wait 11 years to get the maiden dividend of 10% in 2006.
Where as the investors and other NRIs was penalised with Users Fee when Cochin International Airport started the operation in 1999 as back lash and punishment for venturing such unique project in Kerala. But, NRIs from all over the world agitated against User’s Fee, as a result the Airport Authorities compelled to withdraw the User’s Fee.
Again the proposal to re instate the User Fee presented in last board meeting by some greedy board members including NRIs with the behind the seen support of the government and some resident investors. We could realise that Board Member like Mr. M A Yousef Ali opposed the proposal and kept pending for the time being. But we realised that the government also want to introduce the User’s Fee again to get bumper dividend every year, because this one the very few companies giving dividend to the government investment even though they invested hundred of companies in Kerala.
Kerala Finance Minister Shri T M Thomas Issac, keep of talking about development of Kerala with financial participation of non-resident Indians.
When CIAL invite investment from NRIs they offered many sweet promises, when the project had completed the CIAL bite back the NRIs.
So, we request the CIAL and all the Board Members of CIAL and resident shareholders don’t be greedy, please do not reinstate Users Fee. You must realise that if it implemented NRIs, will not sit ideal. Kerala Finance minister has planned to develop Kerala with NRI financial participation, the decisions to reinstate User’s Fee will jeopardise such proposals.
Thank you,
Yours truly,
For Pravasi Bandhu Welfare Trust
K V SHAMSUDHEEN
Chairman
Friday, September 18, 2009
New Direct Tax Code Proposal, NRIs treated as Not Required Indians!
My View
The tax code is only proposal, given to public domain for discussion, debate & suggestions, in October last week CBDT will make necessary amendment thereafter it will be sent to finance ministry than in winter session of parliament bill will be presented to the parliament,than again some time given to MP's for studding this tax code bill (though most of our Hon. MP's donot understand & donot take trouble to read such big book also), thereafter it goes to Rajaya Sabha, after passing in Rajasabha it will go to President for her Ascent. thereafter it becomes law of the land & Govt trying to complete all these process before 28th February 2010 and wants to implement from1st April 2010 .
This code is very complicated & very harsh on NRI's . iam sure powerful NRI's like L.N.Metal, Hindujas & several Tycoons from US & Maricious definitely bring proper pressure on Govt to protect their interest.
We are concern on how it effect middle income NRIs. The code is not a issue for low income category of NRIs.
There will be lot of opposition in India also on several clauses and even if they get it passed at Lokashabha (because UPA has majority) but in Rajaya sabha there are 220 members & UPA has got only 90 members. therefore recently judges bill though passed in Loksabha could not get through from Rajaya sabha. therefore this Govt is going slow on various bills probably same fate may be for this tax code also.
Please read the report
The Times of India
NRIs treated as Not Required Indians!
Mukesh Pate l6 September 2009, 10:58pm IST
|
Indubhai Amin, a non-resident Indian (NRI) settled in the UK earns interest income of Rs 3 lakh on his non-resident ordinary account bank deposit in ndia in the current FY 2009-10. Enjoying his personal exemption limit of Rs 1.60 lakh and the eligible deduction of Rs 1 lakh u/s 80C, Amin is comfortable paying income tax of Rs 4,000 in the first slab of 10 per cent on his effective taxable income of Rs 40,000.
Flat tax of 20% and 30%
A huge shock awaits Amin and millions of NRIs, in regard to taxation of their interest and investment income and capital gains earned in India, proposed to be treated under the draft Direct Tax Code as "income from special sources."
In 2011-12, on the same interest income of Rs 3 lakh, Amin will be required to pay a hefty tax of Rs 60,000 at the flat rate of 20 per cent, without being eligible to claim any basic exemption or other deduction, as provided under rule three of the First Schedule to the Code.
Moreover, all capital gains earned by a non-resident will attract a flat tax of 30 per cent, irrespective of the amount of capital gains. While a resident Indian will be required to pay tax of Rs 3.84 lakh on his taxable income of Rs 25 lakh, an NRI earning equivalent capital gains will be called upon to pay almost double tax of Rs 7.5 lakh.
Hair-raising drafting
New section 13 (2) provides that such ‘special income’ shall be computed in accordance with the provisions of the Ninth Schedule, the drafting of which is literally hair-raising. It provides that the amount of accrual or receipt shall be computed as the taxable income, and no loss, allowance or deduction shall be allowed, as the same shall be presumed to have been granted. The only exception in this regard, in respect of capital gains arising from the transfer of equity shares or units of equity oriented mutual fund chargeable to STT, is quite amusing, as it stands redundant in view of the proposal to abolish STT (a classic instance of incoherent drafting).
The draftsman does not seem to have realized the harsh implications. It means that if an NRI sells a capital asset purchased for Rs 10 lakh at Rs 30 lakh, he will be required to pay tax of Rs 9 lakh at 30 per cent on the gross sale consideration of Rs 30 lakh without any deduction even for the cost of acquisition of Rs 10 lakh (not to mention any benefit of indexation on the same).
Determination of residential status
The residential status of an individual under the Code is proposed to be determined as per the current norms. However, the status of "not ordinarily resident" (NOR) is proposed to be eliminated. Despite the above, Clause 24 of the Sixth Schedule has still provided for exemption in respect of interest earned on foreign currency deposits in the case of NOR. Poor drafting indeed!
The Code has proposed to retain the current exemptions availed by a non-resident in case of interest earned on NRE and FCNR deposits with banks.
Special exemption for returning NRIs
A useful exemption has been provided in case of income earned outside India, if it is not derived from a business controlled from India, in the financial year in which the returning NRI becomes an Indian resident and the immediately succeeding financial year. However, the benefit of the said exemption would be available, only if such individual was a non-resident for nine years immediately preceding the financial year in which he becomes a resident.
Wealth-tax liability for NRIs
Proposed Section 102 of the Code provides for wealth tax liability in the case of the value of all global assets of an individual or HUF. However, an exemption has been provided in case of the value of assets located outside India in case of an individual who is not a citizen of India or an individual or HUF not resident in India. Hence, while returning NRIs who are non-citizens will enjoy wealth-tax exemption for their overseas assets, NRIs with Indian citizenship becoming residents will attract wealth-tax liability on such assets held abroad.
Illogical exemption under wealth-tax
Talking about wealth tax, the Code prescribes an exemption in respect of any house or plot of land belonging to an individual or HUF, if it is acquired before April 1, 2000. It is difficult to understand the logic as to why this exemption has been denied in all cases where such immovable property is acquired after March 31, 2000!
Proposals That Will Hurt the Global Indian Sentiment
Flat Rate of Tax
20% flat tax on interest & other investment income
30% flat tax on all capital gains
Apart from 20% & 30% TDS on above, TDS at a baffling rate of 35% prescribed on all residual income
No Personal Exemption
No personal exemption or deduction allowed in computing the above income treated as ‘income from special sources’.
Weird Interpretation
Poor drafting leads to such a weird interpretation that transfer of a capital asset may attract 30% tax on gross sale consideration.
What Discrimination!
Ironical but true! Non-Indian sportspersons, say Ricky Ponting or Shoaib Akhtar, required to pay a concessional tax of 10% on their game, advertisement and column earnings in India, thus enjoying a more privileged tax status than our own sons of the soil living abroad
The tax code is only proposal, given to public domain for discussion, debate & suggestions, in October last week CBDT will make necessary amendment thereafter it will be sent to finance ministry than in winter session of parliament bill will be presented to the parliament,than again some time given to MP's for studding this tax code bill (though most of our Hon. MP's donot understand & donot take trouble to read such big book also), thereafter it goes to Rajaya Sabha, after passing in Rajasabha it will go to President for her Ascent. thereafter it becomes law of the land & Govt trying to complete all these process before 28th February 2010 and wants to implement from1st April 2010 .
This code is very complicated & very harsh on NRI's . iam sure powerful NRI's like L.N.Metal, Hindujas & several Tycoons from US & Maricious definitely bring proper pressure on Govt to protect their interest.
We are concern on how it effect middle income NRIs. The code is not a issue for low income category of NRIs.
There will be lot of opposition in India also on several clauses and even if they get it passed at Lokashabha (because UPA has majority) but in Rajaya sabha there are 220 members & UPA has got only 90 members. therefore recently judges bill though passed in Loksabha could not get through from Rajaya sabha. therefore this Govt is going slow on various bills probably same fate may be for this tax code also.
Please read the report
The Times of India
NRIs treated as Not Required Indians!
Mukesh Pate l6 September 2009, 10:58pm IST
|
Indubhai Amin, a non-resident Indian (NRI) settled in the UK earns interest income of Rs 3 lakh on his non-resident ordinary account bank deposit in ndia in the current FY 2009-10. Enjoying his personal exemption limit of Rs 1.60 lakh and the eligible deduction of Rs 1 lakh u/s 80C, Amin is comfortable paying income tax of Rs 4,000 in the first slab of 10 per cent on his effective taxable income of Rs 40,000.
Flat tax of 20% and 30%
A huge shock awaits Amin and millions of NRIs, in regard to taxation of their interest and investment income and capital gains earned in India, proposed to be treated under the draft Direct Tax Code as "income from special sources."
In 2011-12, on the same interest income of Rs 3 lakh, Amin will be required to pay a hefty tax of Rs 60,000 at the flat rate of 20 per cent, without being eligible to claim any basic exemption or other deduction, as provided under rule three of the First Schedule to the Code.
Moreover, all capital gains earned by a non-resident will attract a flat tax of 30 per cent, irrespective of the amount of capital gains. While a resident Indian will be required to pay tax of Rs 3.84 lakh on his taxable income of Rs 25 lakh, an NRI earning equivalent capital gains will be called upon to pay almost double tax of Rs 7.5 lakh.
Hair-raising drafting
New section 13 (2) provides that such ‘special income’ shall be computed in accordance with the provisions of the Ninth Schedule, the drafting of which is literally hair-raising. It provides that the amount of accrual or receipt shall be computed as the taxable income, and no loss, allowance or deduction shall be allowed, as the same shall be presumed to have been granted. The only exception in this regard, in respect of capital gains arising from the transfer of equity shares or units of equity oriented mutual fund chargeable to STT, is quite amusing, as it stands redundant in view of the proposal to abolish STT (a classic instance of incoherent drafting).
The draftsman does not seem to have realized the harsh implications. It means that if an NRI sells a capital asset purchased for Rs 10 lakh at Rs 30 lakh, he will be required to pay tax of Rs 9 lakh at 30 per cent on the gross sale consideration of Rs 30 lakh without any deduction even for the cost of acquisition of Rs 10 lakh (not to mention any benefit of indexation on the same).
Determination of residential status
The residential status of an individual under the Code is proposed to be determined as per the current norms. However, the status of "not ordinarily resident" (NOR) is proposed to be eliminated. Despite the above, Clause 24 of the Sixth Schedule has still provided for exemption in respect of interest earned on foreign currency deposits in the case of NOR. Poor drafting indeed!
The Code has proposed to retain the current exemptions availed by a non-resident in case of interest earned on NRE and FCNR deposits with banks.
Special exemption for returning NRIs
A useful exemption has been provided in case of income earned outside India, if it is not derived from a business controlled from India, in the financial year in which the returning NRI becomes an Indian resident and the immediately succeeding financial year. However, the benefit of the said exemption would be available, only if such individual was a non-resident for nine years immediately preceding the financial year in which he becomes a resident.
Wealth-tax liability for NRIs
Proposed Section 102 of the Code provides for wealth tax liability in the case of the value of all global assets of an individual or HUF. However, an exemption has been provided in case of the value of assets located outside India in case of an individual who is not a citizen of India or an individual or HUF not resident in India. Hence, while returning NRIs who are non-citizens will enjoy wealth-tax exemption for their overseas assets, NRIs with Indian citizenship becoming residents will attract wealth-tax liability on such assets held abroad.
Illogical exemption under wealth-tax
Talking about wealth tax, the Code prescribes an exemption in respect of any house or plot of land belonging to an individual or HUF, if it is acquired before April 1, 2000. It is difficult to understand the logic as to why this exemption has been denied in all cases where such immovable property is acquired after March 31, 2000!
Proposals That Will Hurt the Global Indian Sentiment
Flat Rate of Tax
20% flat tax on interest & other investment income
30% flat tax on all capital gains
Apart from 20% & 30% TDS on above, TDS at a baffling rate of 35% prescribed on all residual income
No Personal Exemption
No personal exemption or deduction allowed in computing the above income treated as ‘income from special sources’.
Weird Interpretation
Poor drafting leads to such a weird interpretation that transfer of a capital asset may attract 30% tax on gross sale consideration.
What Discrimination!
Ironical but true! Non-Indian sportspersons, say Ricky Ponting or Shoaib Akhtar, required to pay a concessional tax of 10% on their game, advertisement and column earnings in India, thus enjoying a more privileged tax status than our own sons of the soil living abroad
Wednesday, September 16, 2009
Fund sought for Gulf returnees
T
Fund sought for Gulf returnees
BY PMA RASHEED
The Gulf Today, 15 Sep 2009
A UAE-based expatriate organisation has urged the Indian government to constitute a bill on a welfare fund to pay pension and other benefits to low-income segment returnees of Non-Residents Indians (NRI).
The Pravasi Bandhu Welfare Trust has sent the proposal to the Indian Union Ministry of Overseas Affairs and various state governments for the welfare fund that will benefit low and middle income NRIs.
According to KV Shamsudheen, Chairman of the Pravasi Bandhu Welfare Trust, the Central government of India and state governments should implement a legislation to help NRIs from the respective states, emulating the example of the state of Goa in this regard.
The Goa government had recently drafted a bill for the Non-Resident Goans' Welfare aimed at constituting a welfare fund to pay pension and other benefits to non-resident Indians of Goan origin, when they return and settle permanently in Goa.
"The proposed welfare fund for all Indian expatriates would bring great relief for the low and middle-income group among them. The low-income segment faces a challenging financial situation as they have no resources to continue their present lifestyle when they return to India," said Shamsudheen.
"We request various Indian state governments as well as the Ministry of Overseas Indian Affairs to constitute a scheme like Provident Fund to safeguard the low and middle income category of NRIs," he said.
According to him, states such as Kerala, Tamil Nadu, Karnataka, Andhra Predesh, Rajasthan and Bihar should follow the Goa model for the benefit of the expatriates from those states.
"The Non Resident Goans' Welfare Fund proposes that every non-resident Goan (NRG) member contribute Indian rupees 300 per month. Also, the NRG returnee member who settles permanently in Goa shall contribute 100 rupees to the fund each month," he added.
He explained that the Goan government will also contribute two per cent of the fund annually. NRGs aged between 18 and 55 years were eligible to register as a member of the fund. But a member cannot withdraw from the fund for five years.
"The proposed fund would be used for payment of pension to members who completed 60 years. It would also be used for payment of family pension on the death of a member, provide financial assistance during illness or accident, for marriage or maternity benefit of women members," he said.
Fund sought for Gulf returnees
BY PMA RASHEED
The Gulf Today, 15 Sep 2009
A UAE-based expatriate organisation has urged the Indian government to constitute a bill on a welfare fund to pay pension and other benefits to low-income segment returnees of Non-Residents Indians (NRI).
The Pravasi Bandhu Welfare Trust has sent the proposal to the Indian Union Ministry of Overseas Affairs and various state governments for the welfare fund that will benefit low and middle income NRIs.
According to KV Shamsudheen, Chairman of the Pravasi Bandhu Welfare Trust, the Central government of India and state governments should implement a legislation to help NRIs from the respective states, emulating the example of the state of Goa in this regard.
The Goa government had recently drafted a bill for the Non-Resident Goans' Welfare aimed at constituting a welfare fund to pay pension and other benefits to non-resident Indians of Goan origin, when they return and settle permanently in Goa.
"The proposed welfare fund for all Indian expatriates would bring great relief for the low and middle-income group among them. The low-income segment faces a challenging financial situation as they have no resources to continue their present lifestyle when they return to India," said Shamsudheen.
"We request various Indian state governments as well as the Ministry of Overseas Indian Affairs to constitute a scheme like Provident Fund to safeguard the low and middle income category of NRIs," he said.
According to him, states such as Kerala, Tamil Nadu, Karnataka, Andhra Predesh, Rajasthan and Bihar should follow the Goa model for the benefit of the expatriates from those states.
"The Non Resident Goans' Welfare Fund proposes that every non-resident Goan (NRG) member contribute Indian rupees 300 per month. Also, the NRG returnee member who settles permanently in Goa shall contribute 100 rupees to the fund each month," he added.
He explained that the Goan government will also contribute two per cent of the fund annually. NRGs aged between 18 and 55 years were eligible to register as a member of the fund. But a member cannot withdraw from the fund for five years.
"The proposed fund would be used for payment of pension to members who completed 60 years. It would also be used for payment of family pension on the death of a member, provide financial assistance during illness or accident, for marriage or maternity benefit of women members," he said.
Saturday, September 12, 2009
Colourful Dubai
Khaleej Times
12 September 2009
I appreciate the Municipality’s plan to plant one million trees in Dubai to make the city green (One Million Trees Project in Dubai” KT, September 8). With a little care, we can make the city colourful, as well.
If we plant different species of trees bearing red, yellow and violet flowers, it will make the city vibrant. Also, trees like neem and banyan do not require much care.
-K V Shamsudheen, sharjah
12 September 2009
I appreciate the Municipality’s plan to plant one million trees in Dubai to make the city green (One Million Trees Project in Dubai” KT, September 8). With a little care, we can make the city colourful, as well.
If we plant different species of trees bearing red, yellow and violet flowers, it will make the city vibrant. Also, trees like neem and banyan do not require much care.
-K V Shamsudheen, sharjah
SENDING IT ALL BACK HOME
Sending it all back home
The National
Vinita Bharadwaj
Last Updated: September 12. 2009 2:01AM UAE / September 11. 2009 10:01PM GMT
Most foreign workers come to the UAE to not only make money for themselves, but to support a network of family, friends and others back home. Vinita Bharadwaj reports from India and Dubai on those who sacrifice everything for financial freedom
Vinayagam insists on keeping his family name to himself, because the fear of losing his job is always on his mind.
“I don’t want any trouble from anywhere. I need this simple job, as it has made life for my family better,” says the 35-year-old cleaner, who has lived and worked in Dubai since 2005. Like many unskilled workers from South Asia, the round-faced Vinayagam, who refused to be photographed – again, the fear – arrived in the UAE in pursuit of a dream.
Vinayagam left India two years after the birth of his only son. The boy joined Vinayagam’s two daughters and wife, Lakshmi, in a tiny one-room hut. The house had no bathroom or sanitation facilities and the family of five was surviving on a monthly income of Rs2,000 (Dh150).
Looking to better his lot in life, Vinayagam paid an agent in India the huge sum of Rs35,000 (Dh2,640) to land a job with a Dubai-based construction firm. With no savings to pay the agent’s fee, he pledged the 1,350 sq ft plot of land he owned and secured a loan of Rs48,300 from an illegal moneylender in the Indian state of Tamil Nadu, Vinayagam’s native region.
“The agent’s fee was actually Rs70,000,” he explains. “My land secured me Rs60,000, but the moneylender held back three months’ interest at the rate of Rs3,900 per month. I could pay only half the amount with the loan and had to repay the rest in instalments after coming to Dubai. I gave Rs10,000 to my wife, Rs3,000 to my parents and landed in Dubai with Rs300 (Dhs23) in my pocket.”
Vinayagam’s job profile and salary details were clearly explained to him before his departure: he would earn a basic salary of Dh550, but would likely receive on average Dh900 every month, counting overtime. Accommodation and transportation to the work site would be provided by the company to which he was assigned.
“My wife was against me leaving, but we really needed the money if our family was to survive,” says Vinayagam, who did not study formally beyond the 5th grade. “My father used to go dig water wells when I was a boy and his sacrifice helped me own a plot of land. I reasoned with my wife that I had to go and build towers to help our children grow into educated adults.”
Although construction-site workers in India are paid an average daily wage of Rs400 (Dhs30), Vinayagam says he never managed to earn more than Rs5,000 (Dhs380) in a month in his homeland.
He repaid the agent’s fee and loan after six months on the job in Dubai.
*********************************************
Vinayagam took a series of smaller loans from several moneylenders at lower interest rates and declared himself free of debt in 2007, two years after he arrived in Dubai.
He leaves his accommodations, which are in a labour camp, at 6am, and returns to the room he shares with five others at 7pm. He works as a building cleaner, and sweeps, mops and dusts the same floors and stairways every day. On returning to his room, he and his roommates team up to cook the evening’s meal of lentils and rice and the following day’s lunch, which is usually Indian flatbreads and a fried vegetable. Vinayagam works on Friday mornings, since the overtime increases his income, and sometimes goes to Bur Dubai’s bazaar to meet friends.
“I prefer it this way. If I had more free time, I would miss the family,” he says. On receiving his monthly salary, which comes in cash, he wires Dh700 to his wife through UAE Exchange. In turn, she spends about Rs4,000 (Dhs300) on household-related expenses and deposits the remainder in a local bank account.
Although he was eligible to visit home after working for his company for two years, Vinayagam opted to forego his first earned holiday, which included an air ticket paid for by his employer. Instead, he worked at securing a transfer from his company’s construction division to its cleaning department. The decision paid off.
“As a cleaner, even though my salary remains the same, I come into contact with many kind people who give me tips, and these tips add up to around Dhs200 every month,” he says. “It sorts out my phone and food expenses.”
When Vinayagam returned to India for a holiday, after working for three years in Dubai, one of his daughters, Bharani, refused to speak with him for a month. “She was upset that I hadn’t visited them,” he says, eyes tearing.
However, he was able to stay with his family for four months during that trip. He managed to raise the level of his house’s ground floor, which will help prevent flooding during the rainy season, replaced the thatched roof with one made of concrete and built an indoor bathroom. The improvements cost him Rs100,000 (Dhs7,540), but he saved on labour charges by doing the construction himself.
“From Dubai, I brought home two saris and a mobile phone for my wife and a gold necklace and earrings totalling 40 grams in weight for my daughters,” he says. “That’s all I could afford.”
The family has taken a Rs20,000 (Dhs1,510) bank loan against the gold to enrol Bharani, 8, and her brother, Mohan Ram, 6, in a private school that teaches in English. The poor usually cannot afford such an extravagance, but these institutions are seen as a sign of social progress and Vinayagam and his wife hope sending the children to the school will give them a competitive edge when they attend university.
The children are a handful for their 29-year-old mother, Lakshmi, who is raising them without any assistance from her husband’s family. Such neglect from her in-laws is uncommon in Indian society, which encourages a joint family structure when it comes to support, especially when the man of the house is away. However, infighting within the family has resulted in her living alone in her house, whose one room must function as a bedroom, kitchen and living room. A single steel cupboard is used as a wardrobe for the family’s clothing, and the children’s new school bags lie on the floor beneath a green plastic chair.
Lakshmi works at a factory that assembles parts for scooters and mopeds, and is paid a monthly wage of Rs2,000 (Dh150).
“From getting the children ready for school, to working, cooking in the evening and sorting out their homework, it’s exhausting. I wish he was here,” she says of her husband as the children run around their empty yard and play with an adopted mongrel called Tiger.
Lakshmi watches proudly as Bharani rushes into the front door and displays her newly acquired English skills. Her school, which is a 15-minute bus ride away from their village, has sparked a fascination with the English language that spills into the family home; the siblings now insist on watching Western cartoons on television.
“It’s true that the only reason we can afford to pay for her and Mohan’s education in a private school is because Vinayagam earns in Dubai,” she says. “But only time will tell if it’s worth the separation,” she adds after a long pause.
With two daughters and a young son, Lakshmi says her greatest fear comes at night, when inebriated men sometimes walk by her home.
“Nothing has happened. But not having a man in the house is an unsafe scenario and I am scared for my older daughter, especially if she goes out alone,” Lakshmi says of 13-year-old Neela. “I would rather have Vinayagam back and live on the little we can earn,” she adds firmly.
When he hears Lakshmi’s comments, KV Shamsudheen is pleasantly surprised. The chairman of the UAE–based Pravasi Bandhu Welfare Trust, an organisation dedicated to assisting troubled lower- and middle-income non-resident Indians (NRIs), Mr Shamsudheen is well known for the financial planning and guidance seminars he holds in the Gulf region and India for unskilled NRIs and their dependents.
“I’m heartened to know there are some families who are still emotionally attached to their men,” he says upon his return from a recent trip to India, where he conducted five workshops for the dependents of NRIs in Kerala’s Chavakkad and Thirur districts.
Mr Shamsudheen has thus far conducted 170 such workshops, and is fully aware of the enormous financial gains Indian families enjoy by sending their men abroad to work. His worry is what is done with the money, and his goal is to prevent those working abroad from becoming victims of unrealistic demands and expectations.
“There is no doubt that thousands of families have raised their standard of living through their Gulf workers. Better homes, better education, better food and ultimately a better life,” he says. “But, my only concern is in two aspects. The first is, can they sustain the standard of living they are accustomed to when the Gulf earner returns to India? The second is, do the families know of the men’s hardships?”
Mr Shamsudheen’s new mission of directly addressing dependents in India – and bringing about a change in the consumer culture that prevails because of an assumption that the workers are nothing but money machines – seems to be paying off.
Over the summer he reached out to more than 300 families through his India-based workshops. The majority of the attendees were women, and most of them told Mr Shamsudheen that their husbands or sons in the Gulf had instructed them to attend his presentation. Although the women listened intently at the sessions, he was disappointed at their overall lack of curiosity about the lives and lifestyles of their husbands and sons overseas.
“As long as the gold and the electronics come in, many of the families I speak with don’t seem to care if their breadwinners sleep or eat. And the demands of Indian society are often very unreasonable, particularly when it comes to spending during festivals and celebrations,” he says.
Indian weddings, for example, are extravagant episodes even for the poor, whose lives and savings are affected by the pressures of hosting a wedding feast for hundreds of guests. Jewellery, trousseau and dowry expenses vary from one community to another, but largely remain a core fixture of nuptials. In addition, most Indians adhere to tradition and observe many festivals throughout the year and partake in rituals and ceremonies that celebrate births, mourn deaths and mark the milestones in between. And all of this takes – you guessed it – money.
It was the astronomical debt resulting from a sister’s wedding that prompted an 18-year-old Saravanan Vedhagiri to apply for a position in Dubai’s growing hospitality sector in 2004. The monthly salary of Rs3,000 (Dhs230) he was earning in India as the caretaker of a corporate guesthouse could have never repaid the Rs200,000 (Dhs15,100) loan the family took out to pay for the event.
“My father was in between jobs and there was no steady income other than mine. I also had a younger brother, and we had to find a way out to repay the loan,” he says.
Mr Vedhagiri, who like Vinayagam is also from Tamil Nadu, says that he was the first man from his small village of 600 to seek work abroad. Most of the other families in Nemendham are landowners who grow rice in the surrounding area on land they own, but Mr Vedhagiri’s family’s sole asset is a two-room house on a plot measuring 1,200 sq ft.
“Our kitchen used to be outside,” he says with a coy smile.
Through the network of a benefactor, he found a job in Dubai with the Grand Hyatt’s housekeeping department. “I was fortunate in that I didn’t have to pay any agent fee,” he says.
Thinking of the future, Mr Vedhagiri decided to skip the trip home he was entitled to after a year on the job and instead began cross-training in the hotel’s food and beverage department. After two years in housekeeping, Mr Vedhagiri began work as a waiter in the hotel’s café, Panini, where he worked for 18 months. The 24-year-old now works as a senior waiter in the hotel’s Al Nakheel Lounge.
Though he is uncomfortable discussing the specifics of his salary, Mr Vedhagiri proudly reels off his family’s acquisitions since the dirhams started pouring in. Although he does not send home a fixed amount each month, the family takes comfort in the security of his presence in Dubai and has been able to make improvements to their home that would otherwise remain a distant dream.
“The wedding debt was cleared in two years, and the family home has been extended to include a kitchen inside,” he says. “We’ve also renovated the bathroom and tiled the floors. I bought my father a moped worth Rs45,000 (Dhs3,400), lent my parents Rs200,000 (Dhs15,100) a year ago, and also invested in land worth Rs300,000 (Dhs22,600).
“I came away at a young age, and being single, I don’t face the same issues as a separated married man,” Mr Vedhagiri says. “Of course, I feel homesick, especially when I’m unwell, but working in Dubai in a 5-star hotel has had more than financial benefits.”
For example, if and when Mr Vedhagiri, who has never been to university, wishes to return to India, the experience he has gained working in a 5-star hotel will likely push his CV to the top of a prospective employer’s candidate file.
“I really think I have one of the best-case scenarios in terms of my job and living situation,” he says.
He now visits his family on an annual basis, staying in the home he has furnished with a DVD player, television and ceiling fans. His next goal is to install an air conditioner in the living room, which he believes will be a first for Nemendham.
Asked if he feels any undue financial pressure from his relatives, Mr Vedhagiri answers quickly. “I’ve heard stories from my friends about extremely demanding families. Although mine isn’t unreasonable, the financial and material expectations rise with every year that I work here,” he says tactfully.
Like most employees in the UAE hospitality sector, Mr Vedhagiri does not have to pay for accommodation or the majority of his meals. His salary is deposited into a Dubai bank and he sends home bulk amounts of money only when it is asked for, which he says is usually once a quarter.
“I don’t question the need, the amount or ask for the details on the spending,” he says flatly.
According to Mr Shamsudheen, a lack of communication and accountability between UAE-based breadwinners and their families back home are the main reasons for the financial misery many NRIs encounter.
“If you advise the men to ask their families to rein in the expenses, they are unable to,” says Mr Shamsudheen. Money, as he has observed, serves an appeasing role, and many of the workers he has advised use it to make up for their physical absence.
“It’s the paradox of sacrificing one person to save five. And we can debate it endlessly,” he says.
The key to surviving separation from one’s family, according to Dubai-based 22-year-old Om Prakash Menaria, a cook from the Udaipur district in Rajasthan, is to ensure that wives have the support of an extended family and that male workers in the Gulf have ample opportunity to socialise with others hailing from their villages or communities. Mr Menaria, who has worked for an Indian family in Dubai since moving to the emirate in 2006, insists on living with distant cousins in Bur Dubai.
His family owns 25 acres of land in Rajasthan, on which they grow pulse grains, which are sold to a fixed-price government outlet in Udaipur. Two years ago they achieved what he calls a “bumper crop” of 100 quintals that brought in about Rs100,000 (Dhs7,550). However, it was a rare year of agricultural celebration, as monsoons – and consequently, harvests – remain unpredictable. He is concerned about this year’s yield, as his state government recently declared a drought in 26 districts, including Udaipur.
“I moved to Dubai because there were no opportunities in Udaipur,” he explains. Mr Menaria is a high-school graduate, but says he has friends with undergraduate degrees who cannot find jobs in India.
In Rundera, his home village, and the surrounding region, families whose primary breadwinners are based in the UAE live in brick homes with brightly coloured exteriors, iron gates and modern amenities such as indoor toilets, a television set in every room and more mobile phones than family members; people forced to get by without such largesse live in homes that are are grey and bleak.
After a feast in the family home during a visit to Rundera last year, Mr Menaria explains the changes brought about through his Dubai earnings. “We’ve added a hall, an extra room and two toilets that are built Dubai-style,” he says, opening the bathroom door and revealing a western-style commode that has replaced their traditional hole-in-the-ground arrangement.
“Our community is referred to as the “Maharaj”, and the men who move out take up jobs as cooks in vegetarian families mostly from the states of Gujarat and Rajasthan,” he explains when asked how he ended up as a cook with a Gujarati family in Dubai.
He was sponsored by the family to work for a monthly salary of Dh1,000 and accommodation. Mr Menaria doesn’t have a bank account, but normally sends about Rs40,000 (Dhs3,000) to his family in India – his parents and wife, a grandfather, two younger brothers and a 11-month-old daughter – every four months. Sometimes, though, he is called uposn to send money for special occasions or emergencies.
“Our community spends a lot on rituals and festivities,” he says. “Even when there’s a death, we have to feed the entire village as part of the funeral rituals,” he explains, adding that such expenses can cost as much as Rs100,000 (Dhs7,540).
Earlier this year Mr Menaria decided to get a driver’s licence in a bid to move away from household chores and responsibilities and work for a private company. He spent Dh4,500 and passed the driving test on his third attempt. Since then he has been driving his sponsor’s car and now earns Dh2,000 a month.
When asked if he could pass the “Shamsudheen Test” and maintain his family’s current lifestyle should he have to return home, Mr Menaria responds without missing a beat.
“No. There will be cost cuts across every level. We now have six mobile phones and a landline. I will have to get rid of five phones. Out of three television sets, two will go. We also have a car, which we will not be able to maintain and fill up with petrol. And most importantly, I certainly can’t think of saving for my daughter’s education.”
Maintaining the family’s existing standard of living costs about Rs10,000 (Dhs750) every month, which he says would be inconceivable if there was no “Gulf worker” to fund it.
Mr Shamsudheen nods all too knowingly when asked about the scenario of drastic downsizing when the dirhams start dwindling, and has been endeavouring to create a culture of saving among the dependent families. He is spurred by the results of a 2002 survey conducted by his organisation that revealed that only 2 per cent of lower- and middle-class Indian families save a portion of their remittance money. As a result, when primary breadwinners retire and return to their native towns and villages the financial impact can be devastating.
“Families have to learn how to take smart decisions, such as spending less on clothes that will never be worn again, trimming guest lists and compulsorily putting away funds for a rainy day,” he says. “All of these unsung heroes sweat and bleed for their families. They avoid the Dh1 tea so that their son can buy a Rs10 Pepsi. I’ve seen so many instances of self-sacrifice and every time the excuse is: Let the family be happy,” he says.
However, families such as Vinayagam’s, whose situations have greatly improved by his moving to the Gulf, are caught in a quandary of living through long-distance relationships to achieve long-term aspirations.
“When I ask Vinayagam about his daily life, he asks to speak with the children,” says his wife, Lakshmi. “I know it’s not easy on him. And it’s not easy on me. But I believe our children will have an easier life when they grow up and I only hope they realise the sacrifices of their parents, especially their father.”
The National
Vinita Bharadwaj
Last Updated: September 12. 2009 2:01AM UAE / September 11. 2009 10:01PM GMT
Most foreign workers come to the UAE to not only make money for themselves, but to support a network of family, friends and others back home. Vinita Bharadwaj reports from India and Dubai on those who sacrifice everything for financial freedom
Vinayagam insists on keeping his family name to himself, because the fear of losing his job is always on his mind.
“I don’t want any trouble from anywhere. I need this simple job, as it has made life for my family better,” says the 35-year-old cleaner, who has lived and worked in Dubai since 2005. Like many unskilled workers from South Asia, the round-faced Vinayagam, who refused to be photographed – again, the fear – arrived in the UAE in pursuit of a dream.
Vinayagam left India two years after the birth of his only son. The boy joined Vinayagam’s two daughters and wife, Lakshmi, in a tiny one-room hut. The house had no bathroom or sanitation facilities and the family of five was surviving on a monthly income of Rs2,000 (Dh150).
Looking to better his lot in life, Vinayagam paid an agent in India the huge sum of Rs35,000 (Dh2,640) to land a job with a Dubai-based construction firm. With no savings to pay the agent’s fee, he pledged the 1,350 sq ft plot of land he owned and secured a loan of Rs48,300 from an illegal moneylender in the Indian state of Tamil Nadu, Vinayagam’s native region.
“The agent’s fee was actually Rs70,000,” he explains. “My land secured me Rs60,000, but the moneylender held back three months’ interest at the rate of Rs3,900 per month. I could pay only half the amount with the loan and had to repay the rest in instalments after coming to Dubai. I gave Rs10,000 to my wife, Rs3,000 to my parents and landed in Dubai with Rs300 (Dhs23) in my pocket.”
Vinayagam’s job profile and salary details were clearly explained to him before his departure: he would earn a basic salary of Dh550, but would likely receive on average Dh900 every month, counting overtime. Accommodation and transportation to the work site would be provided by the company to which he was assigned.
“My wife was against me leaving, but we really needed the money if our family was to survive,” says Vinayagam, who did not study formally beyond the 5th grade. “My father used to go dig water wells when I was a boy and his sacrifice helped me own a plot of land. I reasoned with my wife that I had to go and build towers to help our children grow into educated adults.”
Although construction-site workers in India are paid an average daily wage of Rs400 (Dhs30), Vinayagam says he never managed to earn more than Rs5,000 (Dhs380) in a month in his homeland.
He repaid the agent’s fee and loan after six months on the job in Dubai.
*********************************************
Vinayagam took a series of smaller loans from several moneylenders at lower interest rates and declared himself free of debt in 2007, two years after he arrived in Dubai.
He leaves his accommodations, which are in a labour camp, at 6am, and returns to the room he shares with five others at 7pm. He works as a building cleaner, and sweeps, mops and dusts the same floors and stairways every day. On returning to his room, he and his roommates team up to cook the evening’s meal of lentils and rice and the following day’s lunch, which is usually Indian flatbreads and a fried vegetable. Vinayagam works on Friday mornings, since the overtime increases his income, and sometimes goes to Bur Dubai’s bazaar to meet friends.
“I prefer it this way. If I had more free time, I would miss the family,” he says. On receiving his monthly salary, which comes in cash, he wires Dh700 to his wife through UAE Exchange. In turn, she spends about Rs4,000 (Dhs300) on household-related expenses and deposits the remainder in a local bank account.
Although he was eligible to visit home after working for his company for two years, Vinayagam opted to forego his first earned holiday, which included an air ticket paid for by his employer. Instead, he worked at securing a transfer from his company’s construction division to its cleaning department. The decision paid off.
“As a cleaner, even though my salary remains the same, I come into contact with many kind people who give me tips, and these tips add up to around Dhs200 every month,” he says. “It sorts out my phone and food expenses.”
When Vinayagam returned to India for a holiday, after working for three years in Dubai, one of his daughters, Bharani, refused to speak with him for a month. “She was upset that I hadn’t visited them,” he says, eyes tearing.
However, he was able to stay with his family for four months during that trip. He managed to raise the level of his house’s ground floor, which will help prevent flooding during the rainy season, replaced the thatched roof with one made of concrete and built an indoor bathroom. The improvements cost him Rs100,000 (Dhs7,540), but he saved on labour charges by doing the construction himself.
“From Dubai, I brought home two saris and a mobile phone for my wife and a gold necklace and earrings totalling 40 grams in weight for my daughters,” he says. “That’s all I could afford.”
The family has taken a Rs20,000 (Dhs1,510) bank loan against the gold to enrol Bharani, 8, and her brother, Mohan Ram, 6, in a private school that teaches in English. The poor usually cannot afford such an extravagance, but these institutions are seen as a sign of social progress and Vinayagam and his wife hope sending the children to the school will give them a competitive edge when they attend university.
The children are a handful for their 29-year-old mother, Lakshmi, who is raising them without any assistance from her husband’s family. Such neglect from her in-laws is uncommon in Indian society, which encourages a joint family structure when it comes to support, especially when the man of the house is away. However, infighting within the family has resulted in her living alone in her house, whose one room must function as a bedroom, kitchen and living room. A single steel cupboard is used as a wardrobe for the family’s clothing, and the children’s new school bags lie on the floor beneath a green plastic chair.
Lakshmi works at a factory that assembles parts for scooters and mopeds, and is paid a monthly wage of Rs2,000 (Dh150).
“From getting the children ready for school, to working, cooking in the evening and sorting out their homework, it’s exhausting. I wish he was here,” she says of her husband as the children run around their empty yard and play with an adopted mongrel called Tiger.
Lakshmi watches proudly as Bharani rushes into the front door and displays her newly acquired English skills. Her school, which is a 15-minute bus ride away from their village, has sparked a fascination with the English language that spills into the family home; the siblings now insist on watching Western cartoons on television.
“It’s true that the only reason we can afford to pay for her and Mohan’s education in a private school is because Vinayagam earns in Dubai,” she says. “But only time will tell if it’s worth the separation,” she adds after a long pause.
With two daughters and a young son, Lakshmi says her greatest fear comes at night, when inebriated men sometimes walk by her home.
“Nothing has happened. But not having a man in the house is an unsafe scenario and I am scared for my older daughter, especially if she goes out alone,” Lakshmi says of 13-year-old Neela. “I would rather have Vinayagam back and live on the little we can earn,” she adds firmly.
When he hears Lakshmi’s comments, KV Shamsudheen is pleasantly surprised. The chairman of the UAE–based Pravasi Bandhu Welfare Trust, an organisation dedicated to assisting troubled lower- and middle-income non-resident Indians (NRIs), Mr Shamsudheen is well known for the financial planning and guidance seminars he holds in the Gulf region and India for unskilled NRIs and their dependents.
“I’m heartened to know there are some families who are still emotionally attached to their men,” he says upon his return from a recent trip to India, where he conducted five workshops for the dependents of NRIs in Kerala’s Chavakkad and Thirur districts.
Mr Shamsudheen has thus far conducted 170 such workshops, and is fully aware of the enormous financial gains Indian families enjoy by sending their men abroad to work. His worry is what is done with the money, and his goal is to prevent those working abroad from becoming victims of unrealistic demands and expectations.
“There is no doubt that thousands of families have raised their standard of living through their Gulf workers. Better homes, better education, better food and ultimately a better life,” he says. “But, my only concern is in two aspects. The first is, can they sustain the standard of living they are accustomed to when the Gulf earner returns to India? The second is, do the families know of the men’s hardships?”
Mr Shamsudheen’s new mission of directly addressing dependents in India – and bringing about a change in the consumer culture that prevails because of an assumption that the workers are nothing but money machines – seems to be paying off.
Over the summer he reached out to more than 300 families through his India-based workshops. The majority of the attendees were women, and most of them told Mr Shamsudheen that their husbands or sons in the Gulf had instructed them to attend his presentation. Although the women listened intently at the sessions, he was disappointed at their overall lack of curiosity about the lives and lifestyles of their husbands and sons overseas.
“As long as the gold and the electronics come in, many of the families I speak with don’t seem to care if their breadwinners sleep or eat. And the demands of Indian society are often very unreasonable, particularly when it comes to spending during festivals and celebrations,” he says.
Indian weddings, for example, are extravagant episodes even for the poor, whose lives and savings are affected by the pressures of hosting a wedding feast for hundreds of guests. Jewellery, trousseau and dowry expenses vary from one community to another, but largely remain a core fixture of nuptials. In addition, most Indians adhere to tradition and observe many festivals throughout the year and partake in rituals and ceremonies that celebrate births, mourn deaths and mark the milestones in between. And all of this takes – you guessed it – money.
It was the astronomical debt resulting from a sister’s wedding that prompted an 18-year-old Saravanan Vedhagiri to apply for a position in Dubai’s growing hospitality sector in 2004. The monthly salary of Rs3,000 (Dhs230) he was earning in India as the caretaker of a corporate guesthouse could have never repaid the Rs200,000 (Dhs15,100) loan the family took out to pay for the event.
“My father was in between jobs and there was no steady income other than mine. I also had a younger brother, and we had to find a way out to repay the loan,” he says.
Mr Vedhagiri, who like Vinayagam is also from Tamil Nadu, says that he was the first man from his small village of 600 to seek work abroad. Most of the other families in Nemendham are landowners who grow rice in the surrounding area on land they own, but Mr Vedhagiri’s family’s sole asset is a two-room house on a plot measuring 1,200 sq ft.
“Our kitchen used to be outside,” he says with a coy smile.
Through the network of a benefactor, he found a job in Dubai with the Grand Hyatt’s housekeeping department. “I was fortunate in that I didn’t have to pay any agent fee,” he says.
Thinking of the future, Mr Vedhagiri decided to skip the trip home he was entitled to after a year on the job and instead began cross-training in the hotel’s food and beverage department. After two years in housekeeping, Mr Vedhagiri began work as a waiter in the hotel’s café, Panini, where he worked for 18 months. The 24-year-old now works as a senior waiter in the hotel’s Al Nakheel Lounge.
Though he is uncomfortable discussing the specifics of his salary, Mr Vedhagiri proudly reels off his family’s acquisitions since the dirhams started pouring in. Although he does not send home a fixed amount each month, the family takes comfort in the security of his presence in Dubai and has been able to make improvements to their home that would otherwise remain a distant dream.
“The wedding debt was cleared in two years, and the family home has been extended to include a kitchen inside,” he says. “We’ve also renovated the bathroom and tiled the floors. I bought my father a moped worth Rs45,000 (Dhs3,400), lent my parents Rs200,000 (Dhs15,100) a year ago, and also invested in land worth Rs300,000 (Dhs22,600).
“I came away at a young age, and being single, I don’t face the same issues as a separated married man,” Mr Vedhagiri says. “Of course, I feel homesick, especially when I’m unwell, but working in Dubai in a 5-star hotel has had more than financial benefits.”
For example, if and when Mr Vedhagiri, who has never been to university, wishes to return to India, the experience he has gained working in a 5-star hotel will likely push his CV to the top of a prospective employer’s candidate file.
“I really think I have one of the best-case scenarios in terms of my job and living situation,” he says.
He now visits his family on an annual basis, staying in the home he has furnished with a DVD player, television and ceiling fans. His next goal is to install an air conditioner in the living room, which he believes will be a first for Nemendham.
Asked if he feels any undue financial pressure from his relatives, Mr Vedhagiri answers quickly. “I’ve heard stories from my friends about extremely demanding families. Although mine isn’t unreasonable, the financial and material expectations rise with every year that I work here,” he says tactfully.
Like most employees in the UAE hospitality sector, Mr Vedhagiri does not have to pay for accommodation or the majority of his meals. His salary is deposited into a Dubai bank and he sends home bulk amounts of money only when it is asked for, which he says is usually once a quarter.
“I don’t question the need, the amount or ask for the details on the spending,” he says flatly.
According to Mr Shamsudheen, a lack of communication and accountability between UAE-based breadwinners and their families back home are the main reasons for the financial misery many NRIs encounter.
“If you advise the men to ask their families to rein in the expenses, they are unable to,” says Mr Shamsudheen. Money, as he has observed, serves an appeasing role, and many of the workers he has advised use it to make up for their physical absence.
“It’s the paradox of sacrificing one person to save five. And we can debate it endlessly,” he says.
The key to surviving separation from one’s family, according to Dubai-based 22-year-old Om Prakash Menaria, a cook from the Udaipur district in Rajasthan, is to ensure that wives have the support of an extended family and that male workers in the Gulf have ample opportunity to socialise with others hailing from their villages or communities. Mr Menaria, who has worked for an Indian family in Dubai since moving to the emirate in 2006, insists on living with distant cousins in Bur Dubai.
His family owns 25 acres of land in Rajasthan, on which they grow pulse grains, which are sold to a fixed-price government outlet in Udaipur. Two years ago they achieved what he calls a “bumper crop” of 100 quintals that brought in about Rs100,000 (Dhs7,550). However, it was a rare year of agricultural celebration, as monsoons – and consequently, harvests – remain unpredictable. He is concerned about this year’s yield, as his state government recently declared a drought in 26 districts, including Udaipur.
“I moved to Dubai because there were no opportunities in Udaipur,” he explains. Mr Menaria is a high-school graduate, but says he has friends with undergraduate degrees who cannot find jobs in India.
In Rundera, his home village, and the surrounding region, families whose primary breadwinners are based in the UAE live in brick homes with brightly coloured exteriors, iron gates and modern amenities such as indoor toilets, a television set in every room and more mobile phones than family members; people forced to get by without such largesse live in homes that are are grey and bleak.
After a feast in the family home during a visit to Rundera last year, Mr Menaria explains the changes brought about through his Dubai earnings. “We’ve added a hall, an extra room and two toilets that are built Dubai-style,” he says, opening the bathroom door and revealing a western-style commode that has replaced their traditional hole-in-the-ground arrangement.
“Our community is referred to as the “Maharaj”, and the men who move out take up jobs as cooks in vegetarian families mostly from the states of Gujarat and Rajasthan,” he explains when asked how he ended up as a cook with a Gujarati family in Dubai.
He was sponsored by the family to work for a monthly salary of Dh1,000 and accommodation. Mr Menaria doesn’t have a bank account, but normally sends about Rs40,000 (Dhs3,000) to his family in India – his parents and wife, a grandfather, two younger brothers and a 11-month-old daughter – every four months. Sometimes, though, he is called uposn to send money for special occasions or emergencies.
“Our community spends a lot on rituals and festivities,” he says. “Even when there’s a death, we have to feed the entire village as part of the funeral rituals,” he explains, adding that such expenses can cost as much as Rs100,000 (Dhs7,540).
Earlier this year Mr Menaria decided to get a driver’s licence in a bid to move away from household chores and responsibilities and work for a private company. He spent Dh4,500 and passed the driving test on his third attempt. Since then he has been driving his sponsor’s car and now earns Dh2,000 a month.
When asked if he could pass the “Shamsudheen Test” and maintain his family’s current lifestyle should he have to return home, Mr Menaria responds without missing a beat.
“No. There will be cost cuts across every level. We now have six mobile phones and a landline. I will have to get rid of five phones. Out of three television sets, two will go. We also have a car, which we will not be able to maintain and fill up with petrol. And most importantly, I certainly can’t think of saving for my daughter’s education.”
Maintaining the family’s existing standard of living costs about Rs10,000 (Dhs750) every month, which he says would be inconceivable if there was no “Gulf worker” to fund it.
Mr Shamsudheen nods all too knowingly when asked about the scenario of drastic downsizing when the dirhams start dwindling, and has been endeavouring to create a culture of saving among the dependent families. He is spurred by the results of a 2002 survey conducted by his organisation that revealed that only 2 per cent of lower- and middle-class Indian families save a portion of their remittance money. As a result, when primary breadwinners retire and return to their native towns and villages the financial impact can be devastating.
“Families have to learn how to take smart decisions, such as spending less on clothes that will never be worn again, trimming guest lists and compulsorily putting away funds for a rainy day,” he says. “All of these unsung heroes sweat and bleed for their families. They avoid the Dh1 tea so that their son can buy a Rs10 Pepsi. I’ve seen so many instances of self-sacrifice and every time the excuse is: Let the family be happy,” he says.
However, families such as Vinayagam’s, whose situations have greatly improved by his moving to the Gulf, are caught in a quandary of living through long-distance relationships to achieve long-term aspirations.
“When I ask Vinayagam about his daily life, he asks to speak with the children,” says his wife, Lakshmi. “I know it’s not easy on him. And it’s not easy on me. But I believe our children will have an easier life when they grow up and I only hope they realise the sacrifices of their parents, especially their father.”
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