Oppn calls demonetisation 'economic genocide', 'criminal act'

Describing demonetisation as an "economic genocide" and a "criminal act", opposition parties slammed the Bharatiya Janata Party-led Centre for its decision taken on this day in 2016 to scrap high-value currency notes.

On November 8, 2016, Prime Minister Narendra Modi announced the demonetisation of the old Rs 1,000 and Rs 500 banknotes. The key objectives of the decision were to promote digital payments and curb black money, besides eliminating terror funding.

The Congress alleged that demonetisation was independent India's "greatest organised loot" and demanded a white paper from the Modi government on the 2016 move.

Addressing a press conference, Congress leader Gourav Vallabh said Prime Minister Modi had surprised all by declaring that currency notes of Rs 500 and Rs 1,000 were being scrapped on this day in 2016 and the decision triggered "panic, creating unspeakable problems linked to cash and destroying countless small and medium businesses".

It has been six years since independent India's "greatest organised loot", Vallabh said and accused the government of destroying the economy through demonetisation.

Cash in circulation today is Rs 30.88 lakh crore, while it was merely Rs 17.97 lakh crore in November 2016, he said.

"One of the stated objectives of the demonetisation was to promote digital transactions as the government felt too much cash was in circulation. The sharp jump in cash has clearly exploded that objective of the government — sending it the way of its other goals like fighting corruption, weeding out fake notes and curbing terror funding," Vallabh said.

Black money didn't come, only poverty came and the economy became weaker, not cashless, he alleged.

"Small businesses and crores of jobs were finished off, not terrorism," he said.

"The emperor demolished India's economy by giving the people illusions of a better outcome in 50 days," Vallabh said.

He said the Congress demands a white paper on demonetisation.

"The prime minister is yet to acknowledge this epic failure that led to the fall of the economy. He must acknowledge that," Vallabh said.

He said the government must share what plan it has for the unorganised sector and MSMEs who had suffered most in this exercise.

Vallabh said the Congress also demands an employment creation plan, saying "we can't convert demographic dividend to demographic disaster".

Trinamool Congress spokesperson and leader of the party in the Rajya Sabha Derek O'Brien said the move was a "gimmick".

In a tweet, he said: "6 years ago, today. A gimmick that turned out to be an economic genocide #demonetisation. Wrote about this in my book in 2017 #InsideParliament.

O'Brien also pointed out that West Bengal Chief Minister and TMC supremo Mamata Banerjee had called for the withdrawal of the decision.

"@MamataOfficial called it first 'withdraw this draconian decision' minutes after announcement. Others agreed, but only weeks later."

Communist Party of India-Marxist general secretary Sitaram Yechury accused the government of "beating its own drum on the criminal act of #Demonetisation, against all good sense, evidence and advice".

"The sixth anniversary of Modi and his govt's hubris, killing off the Indian economy. Demonetisation has resulted in chaos apart from a record high of cash in circulation. ?30.88 lakh crore! The worst jumla of all - 'This suffering is only for 50 days'," Yechury wrote on Twitter.

Senior Communist Party of India leader Binoy Viswam also hit out at the government and said six years ago, the step to scrap high-value currency notes was taken with great fanfare and the promise to put an end to black money and terrorism, adding that now is the time to take stock of how it has helped the country.

"Now the time has come to take stock of those promises. PM is requested to present a white paper on demonetisation," the Left leader said in a tweet.