[Marxistindia] Posturing on Black Money

[news from the cpi(m)]

November 9, 2016

 

Press Statement

 

 

The Polit Bureau of the Communist Party of India (Marxist) has issued the
following statement:

 

Posturing on Black Money

 

The announcement made by the Prime Minister about the demonetization of the
Rs. 500 and Rs. 1000 notes is not going to yield the desired result of
unearthing black money. It will have limited effect and is more like
political posturing.

 

The claim that the demonetization will check black money, fake currency,
corruption and terrorism lacks substance. By the Prime Minister's own
admission, the bulk of black money generation and storage is in off-shore
accounts in foreign currency.  Counterfeit currency can be generated for any
denomination. The announcement of a new Rs 2000 note alongwith another Rs
500 note does not in any way prevent future possible counterfeit
circulation. It's an established fact that terrorist funds flow through
electronic transfers and not through currency transactions. 

        

 

By allowing the conversion of the existing 1000 and 500 currency notes
within the prescribed time limit, no effective measure is there to prevent
benami conversions. Further, transactions through plastic will continue as
usual. 

 

In effect what this would result in is a total disruption of the payments
and settlements that are part of daily life of our economy. It will  burden
the vast mass of our people from daily wage labourers, fishermen, small
businesses, traders and vendors selling at the door step. What is going to
happen is the disruption in livelihoods and bureaucratic harassment of
ordinary people who wish to change the currency notes. 

 

The basic avenues for money laundering through Participatory notes and
diversions through tax havens remains untouched. There is no attempt to curb
the roots of generation of black money such as in the real estate sector.

 

This is a measure to cover up the utter failure of the Modi government on
the economic front, of joblessness, high prices and no pick-up in domestic
demand, crippling all sections of our population, especially the working
classes, and ruining the peasantry.

 

The CPI(M) demands that the government make public forthwith the names of
those holding bank deposits and accounts in tax-havens and those refusing to
return humongous loans from nationalised banks estimated at over Rs 11 lakh
crores, if it is really committed to recover and curb black money.

 

 

 

 

 

 

 

 

 

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