Demonetisation Anniversary: You Will Find 'Eliminated' Black Money During Gujarat Election Campaign, Says P Chidambaram

On demonetisation anniversary, senior Congress leader P Chidambaram launched a scathing attack on the Modi government and in a string of tweets today morning said that no one can deny that lives were lost, small businesses closed and jobs were lost due to demonetisation.

Former Union finance minister said on this "black day, people should read real-life stories and say a prayer for the "millions who suffered".

"Black money eliminated says Govt. Let the Gujarat election campaign start and you will find the 'eliminated' black money, (sic)" he said in a series of tweets.

Can any one deny lives were lost, small businesses closed and jobs were lost?

- P. Chidambaram (@PChidambaram_IN) November 8, 2017

Black money eliminated says Govt. Let the Gujarat election campaign start and you will find the 'eliminated' black money.

- P. Chidambaram (@PChidambaram_IN) November 8, 2017

Mr Chidambaram claimed that artificial reduction of cash in circulation is one of the reasons for lower demand and lower growth. He also claimed that cash with the public is Rs 15 lakh crore and it is increasing and will soon reach the November 2016 level of Rs 17 lakh crore.

He said how much cash (money supply) there should be, is a decision of the RBI, not the government.

"In interest of transparency, government/RBI should release RBI Board's agenda, background note and (former Governor) Dr Raghuram Rajan's note. If government is confident of its decision, why does it fear releasing these documents?" he asked.

While the Opposition is targeting it as a 'Black Day', the government is celebrating the first anniversary of the notes ban as "anti-black money day".  Prime Minister Narendra Modi tweeted a seven-minute film early on Wednesday morning that he said encapsulates "the benefits of demonetisation," also stating that "125 crore Indians fought a decisive battle and WON."

In an effort to combat corruption and black money, Prime Minister Narendra Modi had suddenly banned high value notes of Rs 500 and Rs 1,000 a year ago today. The notes ban, which yanked nearly 86 per cent of the currency in circulation at the time, has been acknowledged by experts as one of the main reasons for the economic lull, which saw growth plunge to a three-year low of 5.7 per cent in the last quarter.