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

'Flawed' argument: Gandhi had minimal role, naval mutinies alone led to Independence

Counterview Desk Reacting to a Counterview  story , "Rewiring history? Bose, not Gandhi, was real Father of Nation: British PM Attlee 'cited'" (January 26, 2016), an avid reader has forwarded  reaction  in the form of a  link , which carries the article "Did Atlee say Gandhi had minimal role in Independence? #FactCheck", published in the site satyagrahis.in. The satyagraha.in article seeks to debunk the view, reported in the Counterview story, taken by retired army officer GD Bakshi in his book, “Bose: An Indian Samurai”, which claims that Gandhiji had a minimal role to play in India's freedom struggle, and that it was Netaji who played the crucial role. We reproduce the satyagraha.in article here. Text: Nowadays it is said by many MK Gandhi critics that Clement Atlee made a statement in which he said Gandhi has ‘minimal’ role in India's independence and gave credit to naval mutinies and with this statement, they concluded the whole freedom struggle.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

Maize, bajra, jute, banana cultivation banned off West Bengal border: Plea to NHRC

Counterview Desk  West Bengal-based human rights defender Kirity Roy, who is secretary, Banglar Manabadhikar Suraksha Manch, and is national convenor of the Programme Against Custodial Torture & Impunity, in a representation to the chairman, National Human Rights Commission, second within few days, has bought to light one more case of trespassing and destruction of a fertile banana plantation by BSF personnel along the Indo-Bangladesh border, stating, despite a written complaint to the police has taken "no initiative".

India second best place to invest, next to UAE, yet there is 'lacks support' for IT services

By Sreevas Sahasranamam, Aileen Ionescu-Somers*  The United Arab Emirates (UAE) is the best place in the world to start a new business, according to the latest annual Global Entrepreneurship Monitor (GEM) survey. The Arab nation is number one for the third year in a row thanks to a big push by the government into cutting-edge technology in its efforts to diversify away from oil.

Living standards in 'model' Gujarat worse than major states: Govt of India document

By Rajiv Shah  Amidst raging controversy over whether the latest Government of India’s “Household Consumption Expenditure Survey 2022-23 Fact Sheet: August 2022-July 2023” suggests that India’s poverty levels are actually down to 4.5 to 5%  during the decade-long Narendra Modi rule, a state-wise breakup in the 27-page document shows that “model” Gujarat’s average consumption expenditure is far below most of the so-called developed states.

Not livable in summer, Chitrakut PM-Awas houses 'push' tribals in moneylender trap

By Bharat Dogra*  Those who are in-charge of implementing the PM-Awas scheme of rural housing can rightly take pride in what has been achieved in Dafai hamlet (Karvi block, Chitrakut district, Uttar Pradesh). All the Kol tribal families here are extremely poor and vulnerable. In a rare achievement, almost all of them have received housing assistance under PM Awas. 

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Mahanadi delta: Aggressive construction in flood plains, reduced fish stock, pollution

By Sudhansu R Das  Frequent natural calamities, unemployment, low farmers’ income, increase in crime rate and lack of quality human resources to strike a balance between growth and environment etc. continue to haunt the state. The state should delve into the root causes of poverty, unemployment and natural calamities.

Development? This tribal hamlet in Chitrakut has no toilets, no electricity connections yet

By Bharat Dogra*  As we moved away from the starting point of the Bundelkhand Expressway and a famous pilgrimage site into a side-road, the hills of Chitrakut here appeared to be more and more isolated. Another turn, and we appeared to have reached almost a dead-end. However it is here that over 80 households of the Kol tribal community have been living for a long time.

Narmada Valley's fossil evidence: Ground for 'nationalists' to argue primates' India roots?

By Saurav Sarkar*  In December 1982, a geologist digging in India’s Central Narmada Valley found something he did not expect. Arun Sonakia, who at the time worked for the Geological Survey of India, unearthed a hominid fossil skullcap from the Pleistocene era. The discovery sent shockwaves through the field of paleoanthropology and put South Asia on the map of human prehistory. Some experts concluded that the skull likely belonged to a member of a predecessor species of ours, Homo heidelbergensis , or perhaps was a hybrid of homo species, while Sonakia himself suggested “ an affinity… to Homo erectus .”