: Most of the political leaders in Tamil Nadu have welcomed Prime Minister Narendra Modi’s announcement scrapping Rs. 500 and Rs 1,000 notes. However, they want the Central government to ensure that poor and middle-class sections of the society are not affected by the measure.
DMK leader M. Karunanidhi, who appreciated the move, was sceptical of the final outcome. “A similar effort was made during the Janata Party government in 1978 and Rs. 1,000, 5,000 and 10,000 notes were scrapped. But it is not clear whether it led to prevention of black money,” he said.
He said the decision, in reality, would affect the poor and the middle-class, small traders and auto drivers more than the rich.
‘Modi deserves a pat’
MDMK general secretary Vaiko said Prime Minister Modi deserved praise as he had delivered a deadly blow to black money holders who had been running a parallel economy.
Pointing out that the measures to smoke out the black money that Indians had stashed away in foreign bank accounts had failed, he said abolition of Rs 500 and Rs 1,000 notes would completely eradicate the black money within the country. “Black money caused enormous damage to Indian economy and widened the gap between the haves and the have nots,” he said.
PMK youth wing leader Anbumani Ramadoss said if implemented properly, the move would benefit the country. “But it will severely affect the middle-class that has saved Rs. 500 and Rs. 1,000 notes for the marriage(s) and education of their children. The government should take steps to protect their hard-earned money,” he said.
Dr. Anbumani said scrapping Rs. 500 and Rs. 1,000 notes alone would not serve the purpose of eradicating black money as money had been converted into foreign currencies, invested in shares and land and stacked in foreign banks.
“The move would benefit people only if it leads to decrease in the price of land and essential commodities,” he said.
However, Viduthalai Chiruthaikal Katchi president Thol. Thirumavalavan said the Prime Minister’s announcement was a drama to divert people’s attention from his election gimmick and his failure to recover black money deposited in foreign banks.
“Mr. Modi’s claim that his decision would put an end to black money was laughable as black money holders do not keep hard cash,” he said, and added that the announcement had actually created a financial emergency in the country.
He said Mr. Modi had behaved like a dictator and there was a danger of the country plunging into emergency.
CPI(M) slams move
The CPI-M’s Polit Bureau on Tuesday criticised the demonetisation of the Rs. 500 and Rs. 1000 banknotes, saying it will not unearth black money.
It challenged the government to make public the name of those who hold bank deposits 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,” said the PB.
“It will have limited effect and is more like political posturing .... By the Prime Minister’s own admission, the bulk of black money generation and storage is in off-shore accounts in foreign currency,” said the PB, in a statement.
The PB went on to say that the new Rs. 2,000 note, along with a new Rs. 500 note, won’t prevent future counterfeit circulation.
