Tags Posts tagged with "Demonetization"



The flagship revolutionary initiative of prime minister Narendra Modi last November called demonetization have gone into rough weather as the recently revealed results are not that satisfactory as they really were expected to be.

The way our prime minister during last November while declaring demonetization guaranteed the huge unearthing of the clandestinely stored black money in lakhs of crores, after the RBI’s revelation not the minutest percent of it has been recovered whereas about three hundred or more people have died while standing in queues of the banks under scorching sun to get their hard earned money exchanged for hours together even being hit several times by the police lathis. There was literal chaos all over the country as eighty-five percent of the currency comprising of 500 and 1000 denomination notes were declared illegal overnight resulting in over crowding in banks and closure of lakhs of small scale industries for want of new currency thus millions of workers becoming unemployed who finally headed for their respective hometowns.

Now the government says that about 99% of the demonetized money to the tune of Rs 15.28 had been deposited in various banks of the country till 30th June, the dead line fixed by the government. According to author Vivek Kaul it means that ninety-nine % of the black money instead of being burnt had been deposited in banks through various agents employed by these black money hoarders. But this is equally not true.

The fact of the matter is about 14/15 lakh crore currency that came into banks in total during the demonetization phase was actually the entire 86 percent of the circulated currency that was re-deposited by the people into the banks for the sake of exchange of the old currency including the five hundred and one thousand denomination notes. It wasn’t actually the black money. If at all black money has been deposited it was of negligible or of small proportion. The majority of the black money was used to purchase lands, houses, mansions, building and other assets.

In nutshell the 99% of the recovered money the government is talking about is not the black money but the actual money that was in circulation. Mr. Kaul says that as far as detecting the counterfeit currency is concerned, nothing much seems to have happened on this front as well. Data from the RBI annual reports indicate that a total number of fake 500 rupees notes (old series) and 1000 Rupees notes detected between April 2016 and March 2017 were 573,891. The total number of notes withdrawn stood at 24.02bn which means that as a proportion the counterfeit notes identified between April 2016 n March 2017 represent close to 0% of the withdrawn notes. Adds Mr. Vivek Kaul, in the previous year the total number of counterfeit 500 and 1000 rupees notes detected stood at 404,794 and this has happened without demonetization.

Conclusively it can be said that this huge demonetization effort that made people stand for days together outside ATMs and banks and led to so many deaths resulted in the closure of lakhs of small scale units and generated unemployment has not at all come true to the expectation of the peoples’ wishes who believed in the honest intentions of our policy makers at the helm and thought that not only will it result in capturing a huge quantum of black money but will also open doors for the economic future of the nation. But did it really happen is a moot point and rather a question ? Even today several hundred corporate houses and industrialists are on the government’s list of massive borrowers and defaulters of the government’s money to the tune of lakhs of crores and have not returned the same back to the government despite so much of hue and cry in the media. It is believed that if this borrowed money of the tax payers is actually returned back with penalties by these erring corporate houses and industrialists half of the problem of India’s unemployment would be resolved. Demonetization have been out rightly opposed by the economists of the country as according to them it would lead the nation into tremendous complexities and bottlenecks than prosperity as was being expected by those at the helm.

Sunil Negi

Former Tamil Nadu chief Minister J.Jayalalithaa who lived in the hearts of the people breathed her last at Apollo hospital in Chennai on Monday midnight and was buried next to MG Ramachandran at Marina beach with full state honours on Tuesday. She was undergoing treatment in Apollo hospital for the past 72 days. The court monitored probe should be conducted as to what type of treatment was given to her and was the negligence that led to her fatal cardiac arrest. 

As a fearless political icon, Jayalalithaa known as Amma changed the overall political character of the state by ruling for over 14 years between 1991 and 2016 on the basis of her performance doing away with a caste or vote based politics.  

Amma scripted history in 2016 by becoming the sixth time chief minister of Tamil Nadu even breaking the records set by her own mentor and AIADMK founder M G Ramachandran. She had to work very hard in face of stiff opposition by male dominated party rooted in Dravidian ideology. 

Though she was pushed into two high profile careers in film line and later in politics but she worked committedly and wholeheartedly as an actor and later as a dynamic leader where she went to any length to removing hardships of the people that won her a loyal following of millions, who were ready to lay down their lives for her well-being. 

Her style of functioning was such that she would not spare even her party cadres for creating obstacles in implementing the policies for the welfare of the people irrespective of their castes. Bureaucrats were enjoying upper hand in telling ministers how to implement procedures and nuances of governance and Amma relied on them in toto. 

She has left a deep imprint on the Psyche of the people of Tamil Nadu who would see all their dreams being fulfilled through her and would worship her a Goddess and keep her photo in her pockets. 

Hailed as Puratchi Thalaivi (Revolutionary leader) Jayalalithha struck alliances with DMDK and Left parties, wielded an iron hand to break the power of labour unions. Jayalalithaa’s health declined after her imprisonment in September 2014 in a disproportionate assets case  in which she was acquitted less than eight months later. 

Three years after the death of MGR in 1987 Amma won the 1991 elections by galvanizing the support from the rural poor despite the stiff opposition from senior leader R M Veerappam and MGR’s wife Janaki. She drew a token salary of Re 1. Emerged as the leader of the people, perceived ‘as a saviour’ as she launched several welfare programmes like subsidies and concessions in the PDS, in health and education, providing cycles to girls and laptops to college-goers, they are all investments in building capabilities. Expenses on such things as mobile phones, grinders and the like do not amount to much in relative terms as a share of government expenditure. Assistance of Rs 50000 for a girl’s marriage, Amma Canteen, Amma Water, Amma Salt. She started a scheme where food was given to the people at cheap rates Rs 2 and Rs 5 for a whole meal. 

In direct contrast to Prime Minister Narendra Modi’s approach of implementing schemes that have entailed even the death toll of about 100 people causing further misery to their dependents within a month of demonetisation, Modi is more concerned in seeing his policies being translated into votes where as Amma would ensure about the well-being of each and every tamilians being safeguarded in the country even when they were living in North India. Modi always takes into account the consideration of his partymen and cabinet but ignores the concerns of the poor to middle class people rather suspecting them of eating away nation’s wealth. 

When Amma was declared dead, the continuous prayers in the state for her recovery burst into heart-rending scenes of wailing in the entire state of Tamil Nadu.

Article Courtesy : Arti Bali, Senior Journalist & Analyst