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

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

Sattvik Food Festival: Shouldn't one question notion of purity, cultural exclusion in food choices?

Recently, I visited the Sattvik Food Festival, an annual event in Ahmedabad organized by Anil Gupta, professor emeritus at the Indian Institute of Management-Ahmedabad (IIM-A). I have known Prof. Gupta since 1993, when I sought an appointment to meet him a few months after joining The Times of India in Ahmedabad—one reason why I have always been interested in the activities he is involved in.

In lieu of tribute to Pritish Nandy, said to be instrumental in collapse of Reliance-controlled daily

It is widely reported that Pritish Nandy , journalist, author, animal activist, and politician, has passed away. While it is customary to pay tributes to a departing soul—and I, too, have joined those who have posted heartfelt condolences on social media—I cannot forget the way he treated me when he was editor of the Reliance-controlled Business and Political Observer (BPO), for which I had been working informally in Moscow.

Challenging patriarchy? Adopting maternal and marital surnames: Resistance continues

Anandiben Patel The other day, I was talking with a group of family friends. The discussion revolved around someone very close to me who had not changed her official name in documents, including her Aadhaar and passport, after her marriage. However, on social media and within her husband's family, she had adopted her husband's surname as a suffix to her own. I mentioned that there is a growing trend—though not yet widespread—where women prefer to retain their maiden names or add their maiden surnames alongside their husband's surname. Another emerging trend is where men choose to add their mother's name, or even their wife's name, to their own. This revelation surprised my family friends.

To be or not to be Sattvik: Different communities' differing notions of purity and fasting

This is a continuation of my last blog on Sattvik food. When talking about Sattvik, there is a tendency to overlook what it may mean to different sections of people around the world. First, let me redefine Sattvik: it means having a "serene, balanced, and harmonious mind or attitude." Derived from the Sanskrit word sattva, it variously means "pure, essence, nature, vital, energy, clean, conscious, strong, courage, true, honest, and wise." How do people achieve this so-called purity? Among Gujarati Hindus, especially those from the so-called upper castes who are vegetarians, one common way is fasting. On fasting days, such as agiyarash —the 11th day of the lunar cycle in the Vedic calendar—my close relatives fast but consume milk, fruit juices, mangoes, grapes, bananas, almonds, pistachios, and potato-based foods, including fried items. Another significant fasting period is adhik maas. During this time, many of my relatives "fast" by eating only a single me...

Shyam Benegal's Mathan a propaganda film that supported 'system'? No way

A few days ago, I watched Manthan, a Shyam Benegal movie released in 1976. If I remember correctly, the first time I saw this movie was with Safdar Hashmi, one of the rare young theater icons who was brutally murdered in January 1989. Back then, having completed an M.A. in English Literature from Delhi University in 1975, we would often move around together.

Barred premise allowed? 'Modi govt fails to seek release of fishermen languishing in Pak jails'

Are the Indian authorities or their Gujarat counterparts softening their stance toward NGOs that flag human rights concerns? I can't say for sure, as only recently the foreign funding license of one of the most prominent NGOs, Janvikas, headed by the well-known civil society leader Gagan Sethi, was canceled. This NGO has been working on livelihood issues for underprivileged sections of society for several decades.

Would Gujarat Governor, govt 'open up' their premises for NGOs? Activists apprehensive

Soon after I uploaded my blog about the Gujarat Governor possibly softening his stance on NGOs—evidenced by allowing a fisherfolk association to address the media at a venue controlled by the Raj Bhawan about India’s alleged failure to repatriate fishermen from Pakistani prisons—one of the media conference organizers called me. He expressed concern that my blog might harm their efforts to secure permission to hold meetings on state premises.

No to free thought? How Gujarat's private universities are cowing down their students

"Don't protest"—that's the message private universities across Gujarat seem to be conveying to their students. A senior professor told me that students at the university where he teaches are required to sign an undertaking promising not to engage in protests. "They simply sign the undertaking and hand it over to the university authorities," he said.

Beyond the Sattvik plate: Prof Anil Gupta's take on food, ethics, and sustainability

I was pleasantly surprised to receive a rather lengthy comment (I don't want to call it a rejoinder) on my blog post about the Sattvik Food Festival, held near the Sola Temple in Ahmedabad late last year. It came from no less a person than Anil Gupta, Professor Emeritus at the Indian Institute of Management-Ahmedabad (IIM-A), under whose guidance this annual event was held.

Search This Blog