'Loot And Plunder? Congress Would Know': Union Minister On Dr Singh Jibe

New Delhi: Right after demonetization was announced, Arjun Ram Meghwal, the country's Junior Finance Minister, was spotted in line at an ATM in his constituency in Rajasthan. Speaking to NDTV, the minister admitted that he was not among the small team privy to Prime Minister Narendra Modi's plans to cancel 500 and 1,000-rupee notes, but proclaimed early evidence that the reform is working as an antidote to black money.

"Even to buy a home, you have to pay most in cash. So all of these people will see it change in a year. A man came to the Finance Minister's office today and said in old currency, a flat was going to cost 40 lakhs, but in new currency, it is only 12 lakhs. So already, you can see the impact."

Since PM Modi cancelled 86 percent of the notes in circulation on November 8, banks have been jammed with people desperate to get cash which remains in short supply. Less than half the country's two lakh ATMs are currently capable of stocking the newer notes, which are larger in size than the bills they've replaced. And in rural India, which remains excluded from formal banking, farmers are struggling to plant their winter crops, despite special offers extended by the government for loans and credit.

The government is confident that despite those problems, people are buoyed by the move to check the corrupt and rich. Last week, former Prime Minister Dr Manmohan Singh trashed demonetization as "organized loot and legalized plunder." Mr Meghwal's boss, Finance Minister Arun Jaitley, offered a withering rebuttal about "leaders who were in charge when the maximum scams erupted." The retinue of corruption scandals that emerged during Dr Singh's time in office was seen as one of the reasons why his government was pounded by the BJP in the 2014 election.

"He (former PM) may be an economist but didn't the biggest loot and plunder take place during his time? What was 2G (telecom scam) if not plunder? What was CWG (Commonwealth Games held in Delhi in 2010) if not loot?" said Mr Meghwal, ceding that though problems are evident, they will quickly be mitigated.