KS Aglagiri has alleged that the Modi government’s currency devaluation has only helped black money and counterfeit money marketers to convert their black money into white money.
In a statement released by Tamil Nadu Congress President K.S.Azhagiri, “After six years, the Supreme Court has given a verdict that the currency devaluation brought by the central government on November 8, 2016 will go ahead. In this, Judge P.V.Nagarathinamma said, “The action of currency devaluation is invalid!” He has very clearly given a different verdict. The other four judges who delivered the verdict said, “Whatever the government’s motive for demonetisation, the suffering of the people is painful.
“We do not want to interfere in this as it is a policy decision of the government,” and the Reserve Bank of India has said that the Central Government has the authority to take this action as per Section 26(2) of the Act. But the section allows that authority to demonetize only banknotes of a particular series of numbers. At that time, 86 percent of the circulating Rs.17,67,000 crore worth of Rs.500 and Rs.1,000 notes were demonetised.
After this only Rs 2,00,000 crore remaining currency notes were put into circulation for a population of 125 crores. Central Government can act only on the recommendation of Central Board of Reserve Bank. But on the contrary, the central government has decided and recommended to the Reserve Bank that the currency devaluation has been taken as a matter of urgency. At that time, 7 out of 10 posts in the Central Board were vacant. The Reserve Bank has bowed to the compulsion of the central government.
Normally, the RBI takes a two- or three-day discussion on the repo rate and economic policies. However, the decision to remove 86 percent of the currency notes from circulation in the country has made a mockery of its autonomy by taking a hasty decision under the compulsion of the central government. At the time of demonetisation, Rs 15,44,000 crore was in circulation. Out of which Rs.15,31,000 crore has been returned.
12,877,000 crores not returned. In contrast, Rs 12,677 crore has been spent on printing the new Rs 2,000 notes. In this way, only Rs.100 crores have been benefited to the government. Modi government’s demonetisation has helped black money and counterfeit money marketers to convert their black money into white money. In contrast, the GDP growth rate declined from 8.01 percent in 2015-16 to 6.5 percent in 2017-18.
As a result, there has been a loss of Rs 2.25 lakh crore in the GDP. Apart from this, 140 people have died while trying to withdraw money from banks and ATMs. 35,00,000 people have lost their jobs. Small, micro and medium enterprises have been destroyed by 50 percent and lakhs of people have lost their jobs. According to RBI statistics, the country’s total currency note circulation was Rs 17.74 lakh crore on November 4, 2016 before demonetisation.
However, it has now gradually increased to Rs 32.42 lakh crore by December 2022. 83 percent increase in six years. Therefore, as announced by the Prime Minister, black money, counterfeit money and terrorist activities have not decreased. In contrast to the increase in digital money transfer, the circulation of money among people has increased drastically. Thus demonetisation has become an unprecedented economic disaster and a severe attack on the people.
We would like to point out that the judgment of the Supreme Court was only about whether the central government had the power to take currency devaluation, but it did not say about the economic damage caused or the suffering of the people. Even after the Supreme Court verdict, Prime Minister Modi cannot escape the charge that demonetisation is a blatant anti-people disaster.”