Money taken from people to clean banks’ balance sheets: Congress

The Congress said on Tuesday that the real aim of the demonetisation was to mop up resources to recapitalise banks burdened with Rs. six lakh crore in non-performing assets, with industrialists not repaying loans.

On the eve of the winter session of Parliament, the Congress stepped up its attack on the government, saying the demonetisation would have an “adverse impact” on the GDP because of the “freezing” of 86 per cent of banknotes in value terms.

Senior Congress leader Kapil Sibal challenged Prime Minister Narendra Modi to disclose the names of those holding black money. He said: “Of the roughly Rs. 16 lakh crore in the market, the currency notes of Rs. 500 and Rs. 1,000 account for 86 per cent or Rs.14.5 lakh crore. Of this, the government hopes to see Rs. 10 lakh crore placed in the banks. The balance Rs. 6 lakh crore will be generated by the RBI and placed at the disposal of the government. So you take money from the common man to clean the balance sheets of the banks to hide the

gaddari [traitorous acts] of the industrialists.”

He said Mr. Modi was unaware of the plight of the ordinary men and women struggling to exchange or deposit the old currency notes or withdraw money from their accounts. He had made “fun of people... It looks like he is far removed from the people’s problems.”

His statement that the situation would stabilise in 50 days could not be believed because his earlier promises had fallen flat. “All this has nothing to do with battling black money or corruption,” Mr. Sibal said. Mr. Modi had “collaborated” with those who had black money, while the poor were facing the brunt of the decision that caused serpentine queues outside banks and ATMs.

As for the Prime Minister’s remarks that he had sacrificed everything for the country, Mr. Sibal said: “Which palace was he living in that he gave up? Which property did he donate to the public? What sacrifices did he make for the country?”

Criticising the limits on bank withdrawals, he said: “What kind of law is this? The money is mine, the bank account is mine, it is taxable income... Why can’t I withdraw it? It is not Mr. Modi’s money.”