'Note ban a money laundering exercise

The CPI(M) on Thursday tore into central government's defence of demonetisation, saying it legitimised black money and was "sort of a money laundering exercise" to turn illegitimate wealth white.
 
CPI(M) General Secretary Sitaram Yechury said all of demonetisation's stated objectives have failed and the government should bring a "black paper" instead of a "white paper" since Prime Minister Narendra Modi said it is fight against black money.
 
Quoting figures from the RBI report that noted that at least 15.28 lakh crore out of Rs 15.44 lakh demonetised money came back to the financial system, Yechury said, "other than legitimising corruption at highest levels and taking it to hitherto unknown levels, what was it for?"
 
"More than 100% of demonetised currency is coming back after Bhutanese, Nepalese and cooperative banks currency is taken in. This shows it is a successful money laundering scheme," he told a press conference.
 
Describing it was the "biggest scam of independent India", Yechury claimed that BJP members were known to have made bulk deposits of massive amounts just before demonetisation was announced.
 
In a counter to the argument that BJP won the Uttar Pradesh elections after demonetisation and it should be seen as an endorsement for the exercise, the CPI(M) leader said one should also see the results in Punjab, Goa and Manipur also where the BJP lost. Elections to UP and these three other states were held together earlier this year.
 
"Yes, in Goa and Manipur they formed governments using money and muscle power. BJP is perfecting the art of losing elections but forming governments," Yechury said.
 
Insisting that Prime Minister Narendra Modi is responsible for the "misery" of people due to demonetisation, he said more than 100 people died in queues, trying to get their own hard-earned money due to the announcement. "Who is responsible? Why there is no compensation? Is there a FIR?" he asked.
 
He also said there was no mention of digitisation on 8 November 2016 announcement but as the economy crashed, the government went out of its way to help "certain selected private companies" under the mask of digitisation.
 
The CPI(M) leader also claimed that the demonetisation exercise was done to protect corporates which are refusing to repay loans of around Rs 11 lakh crore.
 
"Instead of steadying a sliding economy, demonetisation pushed it further down a dangerous spiral. As per old series, this would be around 3.5% GDP growth, worst in a few decades. This is when crude prices are so low," Yechury said on the dip in GDP growth.