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Opposition's allegation that Govt leaked demonetisation information beforehand is illogical
If you summarise the various allegations by the opposition parties, especially by Arvind Kejriwal and Rahul Gandhi, against the demonetisation you will get 2-3 points only.

First one is, PM Modi informed his party men and some of his corporate friends beforehand regarding government's demonetisation move so that they can take care of their black money.

To prove this, they gave example of the West Bengal BJP, which deposited rupees one crore on 8th November 2011 just before or just after PM Modi declared the currency ban through a televised address to the nation.

In their second allegation, they asked, is there any rich person standing in the queue, indirectly making inference that the rich fellows (close to Modi) did whatever they wanted to do to dispose of their black money after getting the demonetisation info beforehand.

Also, some economists (particularly who are anti-demonetisation) observed that the black money in cash constitutes just six per cent of the total cash and hence such a drastic step inflicting great pain to the people is unwarranted.

Now, I will demolish these three points/allegations by giving some simple logics. It will prove how shallow is their allegation and for which purpose they are raising doomsday day prophecies in high decibel sound bites in a united manner by forgetting their hard core rivalry.

Firstly, let me focus on the first allegation that PM Modi informed BJP beforehand after which West Bengal BJP deposited a little more than one crore rupees in cash on 8th November. 

My first question to them is, what is black money? Black money means unaccounted cash. Thus if BJP deposited money in bank how it can be unaccounted. Rs 500 and Rs 1000 notes have been scrapped for non-banking transactions. But they are still legal notes for depositing in banks. That means the Bengal BJP could have deposited it on November 8th, 10th or today or even on 30th December. Is there a ban on political parties that they cannot deposit their party fund in bank accounts beyond 8th November?

The opposition parties are thinking that they can fool the public with illogical examples, but today's public isn't fool.

Second point is, why rich are not standing in queues to exchange their money. The simple answer is they don't need to exchange. If they have accounted money, they would send their people for making deposits and if cash is required they can withdraw by cheque. As they have bank accounts and most of their transactions (white money) are online or through card, they don't need to stand in queues at ATMs.

In any case they can't deposit their unaccounted money through deposits. They either have to burn/throw their unaccounted cash or will have to find some other method to dispose of their cash. 

One of the methods was purchasing gold, which they have done on the night of 8th. However, the authorities have started scrutinising the gold sale and hopefully many offenders will be apprehended in due course.

Some were converting their old black cash to new black cash through proxies standing in queues for exchange. I have described it in my article 'Have Jugaad technology? to escape war against black money? The government already has a strategy to counter it' published here on 13th November 2016.

Although the government has a strategy to catch hold people after scrutiny of the forms submitted, now it has also started using indelible ink on the fingers of those who are coming to exchange money in a bid to prevent multiple exchanges by a single person. 

Some TV channels (including IBN7) has shown through sting operation that people are standing for others (read people with black money) for exchange of currencies @Rs 300 per exchange (Rs 4000 old currency to new currency).

Yesterday, I had been to a ICICI bank branch in Bhubaneswar. The queue for exchange was much less because of the use of indelible ink. That means, the long queues for exchange of currency was dominated by proxies of black money hoarders (some say it was mostly for politicians) and genuine people were in problem. With the use of this indelible ink I am sure the rush for exchange would be smooth in a week. But some antillectuals use to cite the version of the proxies to describe how big the trouble is for the public.

Now, let's take care of the economists' view that there is only 6% of cash in the form of black money as people have already converted those into immovable properties. I don't know how they have reached to this figure but let me give an example.

Consider, I have black money of Rs 100. I purchase a house giving Rs 40 as black money and rest white. Then I purchased gold giving another Rs 40 in black and rest in white. Thus I have only Rs 20 left in balance as black money because I have disposed of Rs 80 black money by converting it in to properties.

In my case, though it's correct that I disposed of Rs 80 that I had in black, but is that Rs 80 black money now white in totality? The answer is no, because the builder and the jeweller who accepted the black money still have unaccounted cash of Rs 40 each. To calculate their role you can again start considering Rs.100 for the builder or the jeweller.

The bottom line is, black money never became white, rather it was distributed among the black marketers. The only time it becomes white is, when it is distributed to public in elections for the purpose of purchasing votes. But as you are aware the investment in elections always has 10 fold RoI (Return on Investigation). Thus the 6% figure is not logical and there's a lot of black money in the system.

Demonetisation is the first step to recover that black money. The steps to be followed could be very harsh against black money traders and hoarders, whereas the common people need not feel any panic or problem. Mr. Modi had already hinted towards the upcoming problems.

Thus the opposition should stop fooling people with their shallow logics as people can see through their antics.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
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