Skip to main content

Modi intention questioned: Just 0.028% of demonetized currency is fake, Rs 1.14 lakh crore bad debts waived

Counterview Desk
A group of prominent citizens has doubted Prime Minister Narendra Modi’s intention to fight black money by demonetizing Rs 1000 and 500 notes, saying, instead of punishing those responsible for Rs 1.14 lakh crore of bad debts, the Government of India has “waived” these over the last 3 years.
“At the same time”, they have said in an open statement, “loans worth lakhs of crores of rupees are still outstanding”, wondering, “Why has the government not made public the names of the beneficiaries of the waiver and the names of the big defaulters, both individuals and corporations?”
Those who have signed the statement include prominent economist Prof Prabhat Patnaik, well-known Supreme Court advocate Prashant Bhushan, top right to information (RTI) activists and Magsaysay award winners Aruna Roy Nikhil Dey, top Dalit rights activist and Magsaysay award winner Bezwada Wilson, and National Alliance of People’s Movement (NAPM) activist Meera Sanghamitra, among others.
Characterizing government intention to fight fake currency as without basis, the statement says, “As per the Indian Statistical Institute, Kolkata, study, done on behalf of the National Investigation Agency (NIA), Rs 400 crore worth of fake currency is in circulation. This is only .028% of Rs 14,180 billion worth currency demonetized in Rs 500 and Rs 1000 notes.”
The statement says, “IT raids have found that only 5-6% of black money is kept in hard cash”, while the rest is converted into “bullion, gold jewellery, real estate and foreign currencies through brokers and middle-men”, adding, “In fact, organized middle-men and touts have already emerged to convert black money into white for a commission.”
Pointing out that experts, “including a former RBI Governor and the current chief economist of the World Bank”, have disputed the government move, the statement says, “86% of currency in circulation is in Rs 500 and Rs 1000 notes” and “97% of all transactions by volume are done in cash”.
It underlines, as a result, the “summary demonetization has created chaos all over the country with people unable to purchase daily essentials and, in many cases, life-saving goods and services.”
Pointing towards the death of several persons following demonetization, the statement says, “Only about 30% of the Indian population has access to the banking system as per data compiled by the banking division of the finance ministry. Moreover, the distribution of banks is highly skewed with a third of all bank branches in only 60 Tier 1 and Tier 2 cities/towns.”
“Consequently”, it says, “people in rural India who often also suffer from inadequate information have become the worst victims of demonetization”, adding, worse, “reports have started coming in of digital payment systems unable to keep up with the new volume of transactions with credit and debit card servers also going down.”
“Summary demonetization has shaken this trust and will likely impact India’s economy well beyond the initial and widespread chaos”, the statement notes, adding, “If it is the Government’s case that high value denomination currency is used to hoard black money, then the decision to reissue new Rs 500 and Rs 1000 notes does not make sense. Issuing even higher value Rs 2000 note is completely inexplicable and puzzling.”
The statement warns, “The summary way demonetization has been effected is leading to a riot like situation in the country”, demanding rollback or suspension of demonetization “to enable the common person to make adequate arrangements for daily needs and for more orderly phasing out of the old notes.”

Comments

Anonymous said…
Seems logical

TRENDING

Amit Shah 'wrong': Lack of transparency characterized bank frauds, NPAs, jobs data

Counterview Desk
India's senior RTI activists Nikhil Dey, Anjali Bhardwaj, Venktesh Nayak, Rakesh Reddy Dubbudu, Dr. Shaikh Ghulam Rasool, Pankti Jog and Pradip Pradhan, who are attached with the National Campaign for Peoples' Right to Information (NCPRI), have said that Union home minister Amit Shah's claim that the Government of India is committed to transparency stands in sharp contrast to its actual actions.

Untold story of Jammu: Business 'down', students fear lynching, teachers can't speak

By Rajiv Shah
A just-released report, seeking to debunk the view that people in Jammu, the second biggest city of Jammu and Kashmir (J&K) after Srinagar, people had gone “out celebrating” abrogation of Article 370 which took away the state’s special status, has reported what it calls “abominably high levels of fear” across all sections in the town.

Kashmiris in a civil disobedience mode, are going against 'diktat' to open shops

Counterview Desk
A team of concerned citizens, including Ludhiana-based psychiatrist and writer Anirudh Kala, Mumbai-based activist and public health professional Brinelle Dsouza, Delhi-based journalist and writer Revati Laul, and social activist Shabnam Hashmi, travelled to Kashmir and Jammu to understand the impact of the abrogation of Article 370 and the subsequent security clampdown and communication blockade on the lives of the people of Jammu and Kashmir (J&K).

Gujarat's incomplete canals: Narmada dam filled up, yet benefits 'won't reach' farmers

By Our Representative
Even as the Gujarat government is making all out efforts to fill up the Sardar Sarovar dam on Narmada river up to the full reservoir level (FRL), a senior farmer rights leader has said the huge reservoir, as of today, remains a “mirage for the farmers of Gujarat”.
In a statement, Sagar Rabari of the Khedut Ekta Manch (KEM), has said that though the dam’s reservoir is being filled up, the canal network remains complete. Quoting latest government figures, he says, meanwhile, the command area of the dam has been reduced from 18,45,000 hectares (ha) to 17,92,000 ha.
“According to the website of the Sardar Sarovar Narmada Nigam Ltd, which was last updated on Friday, while the main canal, of 458 km long, has been completed, 144 km of ranch canals out of the proposed length of 2731 km remain incomplete.
Then, as against the targeted 4,569 km distributaries, 4,347 km have been constructed, suggesting work for 222 km is still pending. And of the 15,670 km of minor canal…

Ceramic worker dies: 20,000 workers in Thangadh, Gujarat, 'risk' deadly silicosis

By Our Representative
Even as the country was busy preparing for the Janmashtami festival on Saturday, Hareshbhai, a 46-year-old ceramic worker from suffering from the fatal lung disease silicosis, passed away. He worked in a ceramic unit in Thangadh in Surendranagar district of Gujarat from 2000 to 2016.
Hareshbhai was diagnosed with the disease by the GCS Medical College, Naroda Road, Ahmedabad in 2014. He was found to be suffering from progressive massive fibrosis. He is left behind by his wife Rekha sister and two sons Deepak (18) and Umesh (12),
The death of Hareshbhai, says Jagdish Patel of the health rights group Peoples Training and Research Centre (PTRC), suggests that silicosis, an occupational disease, can be prevented but not cured, and the Factory Act has sufficient provisions to prevent this.
According to Patel, the pottery industry in the industrial town of Thangadh has evolved for a long time and locals as well as migrant workers are employed here. There are abou…

Cess for Gujarat construction workers: Spending less than 10%; no 'direct help' to beneficiaries

By Our Representative
While the Gujarat government’s Building and Other Construction Workers Welfare Board, set up in 2004, as of March 31, 2019, has collected a total cess of Rs 2,097.62 crore from the the builders, it has spent less than 10% -- Rs 197.17 crore. And, as on May 31, 2019, the total cess collection has reached Rs 2,583.16 crore, said a statement issued by Bandhkam Majur Sagathan general secretary Vipul Pandya.
Pointing out that just about 6.5 lakh out of 20 lakh workers have been registered under the board, Pandya said, vis-à-vis other states, Gujarat ranks No 13th in the amount spent on the welfare of the construction workers, while 11th in the amount collected.
And while the builders are obliged to pay just about 1% of the total cost of their project, the calculation of the cess is flawed: It is Rs 3,000 per square yard; accordingly, Rs 30 per square yard is collected. “Had the cess been collected on the real construction cost, it would have been at least Rs 7,000 cr…

Success of 'political' Hinduism: Kashmiris being depicted as antagonists of rest of India

By Anand K Sahay*
There are times in history when facts call attention to themselves; they assert their independence in all its amplitude and are in no need of the crutch of interpretation. Such a moment is visible in Kashmir now. Merely by being on the table, the facts there taunt the regime’s proclamations.