Demonetisation biggest scam which caused disproportionate damage to growing economy

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Opposition slams BJP government by calling ‘demonetisation’ biggest scam in India post RBI annual report on demonetisation – remonetisation which revealed 99 percent demonetised currency deposited till June 2017.

While most of the Indians wait to know if Demonetisation of Modi’s Govt is Success or Failure, unlike all the issues in India that go on a slow pace right from justice to results, people of India had to wait for close to 10 months to get the answer to this question.

And the much awaited answer is on 195th page of this year’s Reserve Bank of India (RBI) annual report lies.

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According to Vivek Kaul column which was recently published on BBC : As per RBI data, it’s safe to say that demonetisation has been a failure on epic proportions.

Massive queues at ATM during demonetisation in 2016 / Google Image

Though Modi’s move was very bold, yet it couldn’t reach its prime goal i.e. curbing corruption. On Nov 8 2016, Modi government decided to demonetise 500 rupee and 1,000 rupee notes, which were worth Rs 15.44 trillions in total, almost 84% monetary currency of India’s economy. The idea was to target both counterfeit currency and “black money”, or unaccounted wealth, the Prime Minister told the nation which was backed up by the government press release accompanying the decision.

But with the release of first annual report by RBI on Wednesday after the last year’s demonetisation. In its annual report, as much as 97 per cent of currency notes, outlawed by the government on November 8, 2016, have reportedly returned to banks, posing a huge question mark on Prime Minister Narendra Modi’s demonetisation move. It says that illegal notes worth 15.28 trillions rupees had been deposited in banks up to 30 June. This basically means that almost 99% of the “demonetised” money was deposited into banks. Hence, almost all the black money held in the form of cash also made it back into the banks and wasn’t really destroyed, as had been hoped.

The conventional explanation for this is that most people who had black money found other people, who did not have black money, to deposit their savings into the banking system for them.

As far as detecting counterfeit currency is concerned, nothing much seems to have happened on this front either. Data from the RBI annual report tells us that the total number of fake 500 rupee (old series) and 1,000 rupee notes detected between April 2016 and March 2017 was 573,891.

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The total number of notes withdrawn stood at Rs 15.28 lakh, which basically means that as a proportion, the counterfeit notes identified between April 2016 and March 2017 represent close to 0% of the withdrawn notes.

In the previous year, the total number of counterfeit 500 and 1,000 rupee notes detected stood at 404,794. And this happened without any demonetisation.

India’s GDP growth hit to 3 years lowest this year’s quarter

India’s GDP (Gross Domestic Product) growth fell to a three-year low of 5.7 per cent in the April-June quarter. The economy had expanded at 6.1 per cent in the March quarter and at 7.9 per cent in the April-June quarter last year. Destocking in the run-up to the July 1 launch of the goods and services tax (GST) and a lingering impact of demonetisation hurt the June quarter GDP numbers, say economists.

Analysts polled by Reuters had forecast annual growth of 6.6 percent in the quarter trailing behind China for the second straight quarter as manufacturing slowed ahead of the GST launch amid demonetisation effect. China clocked 6.9 per cent growth in January-March as well as April-June quarters.

According to Economic Times  reports, Gross Value Added (GVA) in the manufacturing sector fell sharply to 1.2 per cent, from 10.7 per cent year on year, as the businesses focussed more on clearing inventories rather than production ahead of the July 1 launch of GST.

A separate set of official data showed that growth of eight core sectors slowed to 2.4 per cent in July due to contraction in output of crude oil, refinery products, fertiliser and cement.

Reacting sharply to the disclosure by the Reserve Bank of India, their was outburst on Modi’s Govt by the opposition.

Trinamool Congress (TMC) chief & West Bengal Chief Minister Mamata Banerjeeasked, ”Does the RBI revelation on demonetisation not point at a big scam?

Demonetisation and GST are biggest scams”. “I feel it was totally a flop show. 99% of the demonetised currency has come back to the RBI. Only one per cent has not returned”, she added. “Hundreds of people have lost their lives. Crores of common people – farmers, workers, those engaged in informal sector, small enterprises and other most vulnerable sections of society suffered massive pain,” she alleged.

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P Chidambaram says ‘Shame on RBI’

Senior Congress leader and Former finance Minister P Chidambaram criticised the RBI for recommending the demonetisation and, in a tweet, said: “Rs 16000 cr out of demonetised notes of Rs 1544,000 cr did not come back to RBI. That is 1%. Shame on RBI which ‘recommended’ demonetisation.”

Chidambaram not only blasted on the bank but also raised doubts whether the whole exercise was designed to convert black money. He said: “99% notes legally exchanged! Was demonetisation a scheme designed to convert black money into white?” “RBI ‘gained’ Rs 16000 crore, but ‘lost’ Rs 21000 crore in printing new notes! The economists deserve Nobel Prize,” Chidambaram said in a series of tweets.

Sitaram Yechury calls demonetisation an anti-national act.

CPI(M) General Secretary Sitaram Yechury was another politician who in a series of tweets attacked the Modi government and termed the whole demonetisation exercise as an anti-national act. “Lives & livelihoods lost, the Economy got a shock, workers lost their jobs. India can never forgive Modi govt for this anti-national act,” Yechury tweeted.

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Randeep Surjewala seeks PM Modi’s apology:

Another Congress politician Randeep Surjewala said that the demonetisation was a disaster in which ‘Corrupt’ made ‘Windfall Gains’. In a tweet, he said: “Utterly failed Demonetisation is nothing but a disaster in which 104 innocent people were killed while ‘Corrupt’ made ‘Windfall Gains’. “PM should apologise to the nation,” Surjewala tweeted.

Kapil Sibal tweeted “Demonetisation: gain for the rich
pain for the poor, cash back in system
exposed their wisdom, now this is our take their promises fake

Watch Video for more details :

Video Source : Political GuruJi 

With PTI inputs

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