1. 95 per cent black money intact in non-currency form: CPI(M) leader Brinda Karat

95 per cent black money intact in non-currency form: CPI(M) leader Brinda Karat

Claiming that 95 per cent of the black money was intact in non-currency forms, CPI(M) leader Brinda Karat today alleged that instead of targeting it, the Centre wants to "conceal the identities" of those hoarding such illegal wealth.

By: | Chennai | Published: November 27, 2016 8:14 PM
Accusing Prime Minister Modi of having replaced "logic with emotion" on taking policy decisions, Brinda Karat had called for roll back of demonetisation initiative. (PTI) Accusing Prime Minister Modi of having replaced “logic with emotion” on taking policy decisions, Brinda Karat had called for roll back of demonetisation initiative. (PTI)

Claiming that 95 per cent of the black money was intact in non-currency forms, CPI(M) leader Brinda Karat today alleged that instead of targeting it, the Centre wants to “conceal the identities” of those hoarding such illegal wealth.

She said withdrawal of 14 lakh crore currency notes from circulation and illegalising it does not make any “logical sense because 90 to 95 per cent of the black economy is intact in land, real estate, foreign banks, (including) Swiss banks, Panama papers and gold.”

“So these are the main avenues of black money and instead of attacking it, (Narendra) Modi’s government wants to conceal the identities of the culprits,” the CPI(M) polit bureau member told reporters here on the sidelines of a function.

Later, she participated in another event held by the All India Democratic Women’s Association against violence targeting women and girl children and administered a pledge against such violence.

On November 25, while addressing a protest here, Karat had termed the Centre’s demonetisation move as a “totally, utterly misconceived project.”

Accusing Prime Minister Modi of having replaced “logic with emotion” on taking policy decisions, she had called for roll back of demonetisation initiative.

  1. S
    Subbarajan
    Nov 27, 2016 at 3:11 pm
    If it is based on proof, why can't you publish, with whatever break up ,including companies on that?
    Reply
    1. Rajeev Desai
      Nov 27, 2016 at 11:47 pm
      This strike. Is only the beginning.... The quicker she understands this, the better :). Anyway, the nation doesn't care what the communists are thinking about anything. They are a forgotten lot.
      Reply
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        Sen P
        Nov 28, 2016 at 4:26 am
        Don't know how the 95% was arrived at. But she has a point though not put across in the best possible manner. The w point is that the current exercise will be a one time measure to unearth cash black money. The cash black money will undoubtedly resurface in its new avatar entrenched in the new currencies unless the loop s which generate black are plugged. Can this be done? The present step does not address the noncash black stashed away in foreign bank accounts. How will it do away with bribery? How will it do away with underinvoicing and tax evasion? Perhaps the single objective that it has addressed on a short term is a body blow to terror funding. The most important calculation should be based on the size of the black economy in terms of the white economy. With a 60% penalty on bank deposited black being mooted if the left over 40% works out to be a sizable percentage of the white money, it will give legal control to the black holders and a sway on the resulting total white economy. This would be a bad scenario and very little can be done unless apriori steps are taken about liquidity of the 40% together with penalty. The other calculation should be based on what fraction of cash in 500&1000 is in white circulation that has to be replaced and how soon can this be done. It was not a good move to introduce 2000 before 500. Logistics has not lived upto the demand so far in terms of recalibration of ATMs, cash filling, proactive digitisation of daily transactions through electronic wallets etc. It is unfortunate that the government has left it to the public to innovate and move towards digital(read cashless) transaction to tide over the cash crunch. This was a great opportunity to put in place a quick fire and secure digital handle in the hands of every citizen even if that meant big subsidizing. True, the move has given a thrust to reducing the unbanked sector by way of opening of banking accounts. But more should have been planned. What we see today are ads by banks or wallet owners urging the public to go cashless. What will be the next move? Smart phone to all free of cost? We have to keep our fingers crossed and keep every upcoming effort in focus to keep floating and pushing a national agenda of driving out corruption. Jai Hind.
        Reply
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          Sen P
          Nov 28, 2016 at 7:24 am
          Where is my first post. Has FE deleted it?
          Reply
          1. S
            S.Mauria
            Nov 27, 2016 at 5:20 pm
            What she forgets is that cash provides liquidity to other forms of black money. If cash is curtailed priced of others will crash and incentive will go way. In fact all will be heavily discounted if use of cash is drastically curtailed. But with Modi indicating other steps, all this is going to impact black money in long run.
            Reply
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              subrata
              Nov 27, 2016 at 5:01 pm
              Cpim is a political party or a communist idelogy club., people are confused lopking to the present stand on demonetization issue.why they are failing time and again the pulse of the people.It is sad reality that for some egoistic leader having no practical sense are controlling the party.Counyry needs left politics on economic ground but unfortunately party is fighting bjp on emotional issurs of religion
              Reply
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