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Scrapping Rs 500 & 1,000 notes is a risky gamble by Narendra Modi
In every election claims are made by every party to eradicate corruption and action against black money hoarders. Thus, 2014 general election was no different. Narendra Modi had promised people that he would act against the corrupt and recover black money. People trusted Modi as a politician with a difference and hoped that he would do something against corruption and black money.

There were some figures available of the black money stashed abroad from different sources. When BJP formed the government, black money stashed abroad appeared to be far less. The reason wasn't very complicated to understand. Because only a fool would keep money there after a high pitched election promise from Modi with his chances of wining. Thus, most of the black money was converted in to assets like gold, real estate and even yachts. 

Most part of the black money returned to India via Mauritius and Bangkok routes. Modi government constituted an SIT in its first cabinet meeting which would report to SC once every six months. Thus, attempts were made to plug the Mauritius and Bangkok routes, international communities were convinced to furnish details so as to track Indian money in foreign banks. It was at least ensured that it becomes difficult to take black money out of the country.

But that didn't mean that generation of black money stopped in India after the arrival of PM Modi's government. Despite providing a reasonable honest government at the Centre, the generation of black money remained as usual in India. The point that must be understood here is that there are two types of black money generators or hoarders. The first type of black money hoarders generate black money because of their power to grant or approve and to some extent have the authority to create nuisance. For example corrupt police officers, ministers, bureaucrats, municipality authorities etc. They have tremendous authority to delay or even refuse approvals. These people have the capability to harass people running businesses. Thus, even an honest person succumbs to the system and ends up paying bribe thus helping in generating black money.

The second type of black money generators are middlemen, businessman etc who have to produce black money in order to bribe the authorities. For example a real estate businessman has to obtain around 40 NOCs or approvals for his construction project and nothing is available without bribe. A construction agency has to bribe the supervision authority or else it would be subjected to further scrutiny. A good police officer has to generate black money to stay in cities for education of his children because non-payment of bribe to top authorities may result in his transfer to some remote corner of the country.

After various stringent steps taken of stopping black money from going out of the country, Modi eyed the domestic black money which functions as a parallel economy. And then, fake currency and terror funding were also serious issues related to it. Opposition parties started asking, where the black money was? It's not that the opposition parties don't know how black money is stashed abroad or how it re-enters into the domestic market. But they thought that they could corner Modi on this aspect.

In the meantime, Modi did a surgical strike on Rs 1,000 and 500 notes. Ask experts and they will tell you that this is a bold step. The point to be noted is that Modi doesn't enjoy much support from within his own party on this issue because of obvious reasons. But then, it's not an easy task. There will be lot of hardships and inconveniences. Modi knew that initially he may face a lot of opposition from public but after a month or let's consider by January, 2017 the picture will totally change. As hinted by Modi on Sunday, many more actions are to come from January onwards in the fight against corruption.

Now, exposing some of leaders. Arvind Kejriwal came opposing this move of demonetization. Mamata Banerjee is ready for a united opposition front along with CPI (M) and Congress. But people understand who stands where on anti-corruption movement and war against black money. There could be a united opposition where SP, BSP, RJD, JD (U), Left, TMC, DMK and Congress join and try to politicise the hardships of common people although everyone knows on whose side they stand in the fight against corruption and war against black money.

Thus it's a risky gamble for Narendra Modi. There could even be an attempt inside BJP to remove his getting support of other political parties. That's why Modi has started addressing the people directly. But one thing is sure, if things normalise within the coming two-three weeks, then all united opposition will be in for serious trouble as Modi will rise to a higher stature where the public will stand behind him. But the risk is, if RBI, banks and other institutions fail to manage the situation and put an end to the hardships of the common man, then opposition parties will succeed in creating chaos which may politically affect Narendra Modi.

So let's wish for the success of war against black money, corruption, counterfeit currency and terror funding.

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 In case you have a opposing view, please click here to share the same in the comments section.
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