JOIN USFormer prime minister Manmohan Singh on Thursday described the Modi government’s ban on high-denomination notes as ‘organised loot and legalised plunder’.
The decision could lead to a dip in GDP growth by at least 2%, he warned. The reputed economist reopened the debate in the Rajya Sabha after Prime Minister Narendra Modi made it to the House. Modi heard him in rapt attention.
Singh said farmers, small traders and the poor were in distress, and this had convinced him that demonetisation had led to “organised loot and legalised plunder”.
He dismissed Modi’s appeal for 50 days to improve the cash flow, saying the consequences could be disastrous for the poor.
“Already, 60 or 65 people have lost their lives, possibly more. This move will weaken and erode the people’s confidence in our currency and banking system,” Singh said.
The remarks of Singh, widely credited with launching India’s economic reforms in 1991, galvanised the Opposition ranks. He holds the distinction of handling economic affairs in almost all key capacities — chief economic adviser, finance secretary, and governor of the Reserve Bank of India.
Question of trust
Directly challenging Modi, Singh said, “I would like to know from the PM the names of any country he may think of where people have deposited their money in their banks, but are not allowed to withdraw.”
He criticised the daily modification of rules for cash withdrawal. “That reflects very poorly on the Prime Minister’s Office, on the finance minister’s office and on the RBI,” he said.
“The GDP of the country will decline by about 2% by what has been done. And this is an underestimate and not an overestimate,” said the Congress leader, who has seldom spoken in the House. There was brief resistance from Finance Minister Arun Jaitley when Deputy Chairman PJ Kurien allowed Singh to speak during zero hour.
Singh was given the opportunity to speak during Question Hour, when the House reassembled after an adjournment. Others who spoke after Singh included Naresh Agrawal (Samajwadi Party), Derek O' Brien (Trinamool Congress) and Mayawati (Bahujan Samaj Party).
After five days of confrontation, the debate began when Modi attended the Rajya Sabha. But when the House resumed sitting after lunch and the PM did not turn up, pandemonium prevailed.
The House was adjourned till 3 pm and then for the day as the clamour continued.