Demonetisation of high-value notes a ‘crisis of gigantic proportions’: CPI(M)

Terming the demonetisation of high-value notes as "crisis of gigantic proportions", the CPI(M) on Tuesday claimed the move will not achieve Prime Minister Narendra Modi's objectives including combating black money.

The CPI(M) Politburo, which met here today, sought to pick holes in the move, saying commoners including farmers, traders and vegetable vendors have been hit hard due to it and asked government to allow use of Rs 1,000 and Rs 500 notes till December 31 until it makes alternative arrangements.

The CPI(M) decision-making body also suggested the Centre to accept the requests made by CPI(M)-led state governments in Kerala and Tripura to this regard and hoped other non-BJP governments too will take similar steps to provide relief to people facing hardship.

The Left party continued to tread cautiously over its arch rival TMC's call for joining hands over the issue and sought to know "who stands where" on the issue after NDA government states its position on demonetisation inside Parliament.

"Withdrawal of Rs 1,000 and Rs 500 notes is a crisis of gigantic proportions... There has been a total disruption of the payment and settlement system and has impacted all citizens in one way or the other," the Politburo said in a statement after the meeting.

"This measure does not in any way address the four objects that Prime Minister Modi outlined - black money, corruption, counterfeit currency notes and terror funding," it added.

The Politburo alleged that the government has made no effort to bring back bulk of black money which is generated and stored in off-shore accounts in foreign currency. It pointed out that cash constitutes only six per cent of black money.

Referring to a NIA report into counterfeit notes, only 0.028 percent notes withdrawn is counterfeit.

"The basic avenues for money laundering through participatory notes and diversions through tax havens remain untouched. There is no attempt to curb the roots of generation of black money such as in the real estate sector," it said.

The Politburo reiterated allegation that several state units of BJP deposited "huge amounts" of money in Rs 500 and Rs 1,000 notes in their accounts "hours before" Modi made demonetisation announcement on November 8.

There is concrete evidence, that media has exposed, the BJP unit of West Bengal, in this regard, it said.

"Known cases of money laundering through chit funds schemes like Saradha and the open acceptance of currency in the Narada expose continue to remain uninvestigated, common people whose savings have been looted are not being given back their monies by this government and the culprits go unpunished," it claimed.

Meanwhile, the Politburo also discussed the one-day ban declared by I&B Ministry on NDTV India, the suicide of an ex-serviceman in the national capital, the case of missing JNU meeting, registration of "fabricated" murder case against DU and JNU professors, etc.