Sinha compares Modi to Tughlaq, says demonetisation has failed


New Delhi, Mar 20 (IANS): Former Union Finance Minister Yashwant Sinha on Monday said demonetisation has "failed comprehensively", as he compared Prime Minister Narendra Modi to 14th century Delhi Sultanate ruler Muhammad bin Tughlaq.

Speaking on the launch of renowned economist Arun Kumar's book 'Demonetization and the Black Economy", Sinha also noted that the abolition of Rs 1,000 note, which was brought back by him in 2000, "pained" him.

"I felt pained personally. After 1978 demonetisation, I had brought back the Rs 1,000 note that was abolished. I felt as if my child has been killed. Apart from that, in order to clean up, you introduced Rs. 2,000 note?" he said.

The BJP leader, who has been vocally opposing demonetisation but continues to be a part of the party, said that he felt Modi was told demonetisation would fill government coffers.

"My own feeling is that someone told the Prime Minister that if he goes for demonetisation, Rs 3-4 lakh crore will come. It will be a bonanza for the government... that unfortunately did not happen," he said.

Sinha questioned why the Reserve Bank of India (RBI) did not issue the final figures on the cash that has been collected post November 8, 2016 demonetisation of Rs 500 and Rs 1,000 notes.

"After the 98.8 (per cent) figure, they have not told us the final figure. Maybe it would be thoroughly embarrassing if we admit that more money has come back," he said.

He went ahead to compare Modi to Tughlaq, who had introduced token currency of copper and brass coins.

"There used to be a king, who shifted the capital to Daulatabad... He also did demonetisation. We have gone back five centuries to repeat the same mistake," Sinha said.

While he did not name the king, the reference was unmistakable.

Sinha said "responsible people" in the government were not consulted before the decision was taken, but they had to defend it.

He also question the impact of demonetisation on black money, and questioned where the electoral fundings were coming from.

He also said that post demonetisation, "tax terror" is back.

The book says the unorganised sector, which functions largely on cash, has been "damaged irretrievably" and that government data does not reflect it because the data for the non-agricultural component of the unorganised sector is available with a time lag.

A note on the book said demonetisation was carried out on the "mistaken belief" that "black means cash".

"Black cash is less than one percent of the black wealth so even if this cash could be squeezed out, it would hardly impact black wealth. Further, black income generation is a process which is not impacted by demonetisation," it said.

It also argued that cash in an economy does not determine the level of corruption, and having a less cash economy would not determine the level of corruption in the country.

  

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Comment on this article

  • Declan, Mumbai

    Tue, Mar 20 2018

    Demonetization was nothing but a scam to help convert black money to white to later give it off as loans to the Ambanis and Adanis etc.

    DisAgree Agree [3] Reply Report Abuse

  • Af,,, Mangalore

    Tue, Mar 20 2018

    Sinha ,LK Advani ji are now made as toothless snakes ,there is no effect if they bite also,

    DisAgree [3] Agree [5] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Tue, Mar 20 2018

    Of course you are better than jutly,because he is handling a portfolio that doesn't belongs to him,maybe suitable for law minister.as far as demonatisatin is concerned it is really a "Thuglak"idea from a layman's idea.

    DisAgree [1] Agree [15] Reply Report Abuse

  • Vincent Rodrigues, Bengaluru/Katapadi

    Tue, Mar 20 2018

    Anything new implemented without proper preparation is nothing but disaster

    DisAgree [1] Agree [22] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Mar 20 2018

    Our Chaiwala also has some Limitations ...

    DisAgree [1] Agree [20] Reply Report Abuse

  • Truth teller, Karnataka

    Tue, Mar 20 2018

    World rankings on corruption in countries has placed India at the same (just 2 points up) bottom most corrupt countries!. It shows that demonitization has failed miserably but also pulled back our GDP growth!!!. It has virtually destroyed almost all SME's and made people lose jobs! Exactly the opposite was promised by Modiji!!!. Looks no body dares to talk against him or at least tell him the correct path forward!

    DisAgree [1] Agree [22] Reply Report Abuse

  • PEDDA GUNDA, MANGALURU

    Tue, Mar 20 2018

    They voted a NOT WELL POLISHED politician and they thought bring sensible changes which is never happend

    DisAgree Agree [18] Reply Report Abuse

  • Ahmed K.C., Mangalore

    Tue, Mar 20 2018

    Demonetization was a haste decision. It wasn't in the interest of the country but, for the benefit of BJP/RSS only

    DisAgree Agree [27] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Tue, Mar 20 2018

    Golden words from an intellectual...., Let us pray that no one venture to call shrii Sinhaji as Anti - .....,
    We can't expect anything better from chai & pakoda economy specialist....!!!

    The NDA's achievement is they successfully converted Hindustan's Central Bank (RBI) as currency printing press....!!!


    jh
    jai hind..,

    DisAgree Agree [22] Reply Report Abuse


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Title: Sinha compares Modi to Tughlaq, says demonetisation has failed



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