Timing for demonetisation was perfect: PM

Answering criticism over demonetisation, Prime Minister Narendra Modi today asserted in Lok Sabha that the timing for the decision was perfect as  the economy was doing well and hit out at Congress whose record he questioned with regard to various issues.

Replying to a debate on Motion of Thanks on the President's Address which was adopted by the House later amid walkout by Congress, he replied point-by-point to the issues raised by the Opposition, including surgical strikes and allocations for MNREGA, agriculture sector and for Scheduled Castes. Opposition had moved 190 amendments to the Motion which were negated.

In his 90-minute speech, which was punctuated by protests by some Opposition members at certain points, Modi also raised pitch for simultaneous elections to Lok Sabha and Assemblies, asking all parties to consider the proposal, rising above political considerations as "everybody will face some difficulty" if it is implemented.

On demonetisation over which he has been under sustained attack, the Prime Minister asserted that the timing of the decision announced on November 8 last year was perfect. "Some people have said why was this (demonetisation) decision taken when the economy was doing well...It was the best time for demonetisation as the economy was strong. Had the economy been weak, then we could not have done it successfully," he said.

In this regard, he gave the example of a patient who has to undergo a surgery. "Before subjecting a patient to surgery, a doctor checks all the parameters of the patient and only when those parameters are fine, is the operation done," he said. He also emphasised that the decision was not taken in a haste as contended by some sections. "Don't assume that Modi does anything in a haste. For that you will need to study Modi."

Acknowledging that demonetisation had brought "difficulties" to the people, the Prime Minister said, however, that the decision was not taken for any political mileage but for the benefit of the poor. "We had to take it and took it," he said. Modi listed out the steps taken by his government to curb black money, including setting up of SIT, tightening the law on benami, Real Estate Bill, making PAN requirement mandatory for cash transactions of Rs 2 lakh and above and revision of tax treaties with countries like Mauritius, Singapore and USA.

"Had it been for political benefit, you would have done it," he told the Congress. Explaining why November 8 was chosen for the demonetisation decision, the Prime Minister said post-Diwali is usually a period when the business cycle subsides after peaking during the festival season. He said he was aware that there would be some problems for 15-20 days and things would move towards normalcy in 50 days. "Today I can see that whatever I had analysed, we are moving in that direction," he added.

To questions regarding change of rules 150 times after demonetisation announcement, Modi said it was done to find ways to ease problems of people. "On the other side, there were people who were trying to find ways to adjust their black money," he said and narrated a Hindi couplet to say that the government wanted to be a step ahead of those indulging in frauds. Hitting out at Congress for raising the issue of change of rules 150 times on demonetisation, Modi said the previous UPA government had changed rules regarding MNREGA 1035 times during its implementation over six years.

Spelling out benefits of demonetisation, he said it has brought everything on the record, including details regarding who has deposited money, where he has deposited and how much has been deposited. "There was a time when Income Tax officials used to operate arbitrarily. But that is history.... Now by use of technology and data mining, top names would be culled out without an I-T officer needing to go anywhere. They can just send SMS," he said. "I urge everyone to come to mainstream and contribute to nation building and help the poor," he said.

"Whoever wants to come into mainstream, he can do that and I believe it will make India clean and like the Swachh Bharat Abhiyan, the economy will be cleansed," Modi said. Responding to questions raised by the opposition whether black money would be curtailed because of demonetisation, he hit out at Congress, saying it had done nothing to fight this menace.

In this regard, he cited the Supreme Court order of March 2014 which said "since 1947, nobody in last 65 years thought of bringing back black money stashed in foreign bank accounts. The government has failed in its role for 65 years. You have failed in your duty, therefore we order setting up of SIT. Three years have passed you have done nothing."

The Prime Minister said the first thing that his government did after assuming office in May 2014 was forming SIT on black money as directed by SC. He said the Real Estate bill was passed, considering the fact that much of black money is parked in this sector. Jewellery market was also streamlined, he said. "I received letters from MPs from all across political spectrum appealing for doing away of PAN requirement for Rs 2 lakh jewellery. But we did not go back," he asserted.

Modi agreeed with Congress Leader Mallikarjun Kharge that much of black money is parked in real estate and benami properties besides jewellery but questioned why his party did nothing all these years. "Kharge ji said that black money is there in jewellery, property, etc. I agree with you. But this House wants to know when did this realisation dawn on you? Because nobody can deny that corruption starts with cash, and result is jewellery or property or gold.

"Tell us, in 1988, when Rajiv Gandhi was PM, who had got a bigger mandate than even Nehru. From Panchayat to Parliament, everything was under your control....The Benami Law was enacted in 1988 but it was never notified... What is the reason that for 26 years, the law was not notified? Had it been notified at that time, 26 years back, it would have been a step towards cleaning the country and situation would have been better," Modi told the Congress leader who had attacked him yesterday.

Posing further questions to Congress, he said, "Who were those people who felt, after making the law, that it is better to suppress this law? You will have to answer this." He asserted that this government has taken steps against black money holders. "I want to tell the countrymen, how much big you might have become, but you will have to return the right of the poor. I am not going to back out on this fight for the poor, I will keep fighting for the poor," Modi said. He said there is no dearth of resources for the poor but certain sections of people have looted and the poor suffered.

"This is not a new issue. This issue had come up earlier also. Yashwantrao Chavan (then minister) had approached Indira Gandhi (with a proposal to eradicate black money). But she told him 'don't you have to contest elections'? You were scared of elections. But we are not worried about elections. We are worried about the country and hence we took this decision," the Prime Minister said. "No one can deny that cash has become an integral part of our lifestyle. But unless you inflict a deep injury, you cannot come out from that situation," he said.

With regard to opposition's criticism over demonetisation, an issue that led to washout of the last Winter session, Modi said from day one, the government has been saying that it is ready for a discussion on it. "But you felt, if discussion is held now, Modi will take advantage of it. So instead of discussion, you chose to give TV bytes. Therefore a discussion could not take place. It is good that this time you have shown interest," he told the opposition benches.

 

Contending that there is a difference in the work culture between a Congress government and his government, Modi insisted that a major change has been brought in the country and the nation is on the path of development. He said before May 2014 when Congress-led UPA was in power, there were discussions only about how much money has been lost in scams in coal block allocation, 2G spectrum auction and other scandals.

"Now the discussion is how much (money) has Modi brought (to the exchequer). This gives such a satisfaction and this is the right step," the Prime Minister said. "Your motto was, enjoy till you live," he said, addressing the Congress benches. Targeting the Congress, Modi said the opposition party claims to be the custodian of the farmers, the poor and the suppressed people. He then listed the schemes and programmes initiated by his government to assert that it has done more for development and betterment of all, especially the poor, the dalits, the farmers and other weaker sections.

"Intent is critical for any policy. If there is no good intent behind a policy, then it becomes a minus," he said. "You (Congress) knew what your duty is but you did not do it. You also knew what was wrong are but you refused to give these up," Modi said. Referring to the dig that Kharge took yesterday, the Prime Minister said, "They (Congress) have problems with even the mention of dalits, oppressed, suppressed sections in the President's Address."

While continuously targeting Congress, he said, "Whatever we say, you say it was done during our time. But I am also going to play the game in your field only." Modi also hit back at Kharge for his jibe yesterday that he could become the Prime Minister only because Congress had preserved democracy for 70 years. "You have done a big favour by saving the democracy. But the country very well knows the democratic tradition of this (Congress) party.

"Everybody remembers 1975 when Emergency was imposed in the country and the nation was converted into a prison. Lakhs of people were jailed... But they (Congress) did not realise the power of people. It was the people's power that forced it (Indira Gandhi's government) to restore democracy," he said. He said it is due to that power of the people and democracy that a person with poor background like him could become the Prime Minister.

Modi also attacked Congress for "claiming entire credit" for the country's independence and took objection to certain comments made by Kharge yesterday with regard to sacrifices. "Hum kutton ki paramapara se pale bhade nahi hain (we have not grown in a culture of dogs)," he said. He said even before Congress party was born, lakhs of countrymen had had made sacrifices for independence and referred to the 1857 revolt.

"Everybody gave their lives, unitedly without any communal colour in it," he said. Noting that several members of the House were born after Independence, Modi said, "though we did not get an opportunity to give our lives, we have got a chance to live for the country's betterment." Referring to surgical strikes, the Prime Minister said it was a "huge decision" which bore success. He said opposition leaders had made certain remarks in the first 24 hours of the surgical strikes but changed tune when they saw the public happiness.

"The surgical strike was such a big success and I know it is troubling you because you are not able to tell the public and are suffering from within," Modi told the Opposition. "I am asked why demonetisation was kept a secret but nobody asks why surgical strike was kept secret," he said. He said the Indain army is powerful and capable enough to protect the country. Appealing to opposition parties for cooperation, Modi said, "Our Parliament should have new ideas and thoughts. These may come from any side. We will welcome good ideas. Ultimately it is the objective of all of us to take the country forward."