Demonetization biggest scam of the year : Chidambaram

chidambaramFormer Finance Minister P Chidambaram came down heavily on NDA government calling the Demonetization ,the biggest scam of the year and also demanded an investigation.

He said, “Every bank says – no cash. So how does the govt says there is cash?. This is why Dr Manmohan Singh said monumental mismanagement. I cannot get Rs 2000 note. How crores in Rs 2000 notes found their way to individuals being raided all over the country.  45 crore people have been affected due to Demonetization, who will compensate them?”, questioned the former FM.

He said Farmers are suffering, there is no money to buy seeds, to hire labor or buy fertilizers. Every major economist, the newspaper in the world has said that this is the most absurd of moves by the government. It is a Thoughtless move.

He questioned, Which country has a cashless economy? Does US? Does Singapore have it? Where is electricity in the country? Where are the ATM machines?. Has this stopped corruption and black money?.In fact, whole game may have been to lure people into keeping Rs 2000 notes & then declare it illegal, ultimately poor people are punished. He said, the rich are not affected. It is the poor who are hurt. Only poor people are being punished. Demonetization has Long term impact that it will be negative for GDP. Even RBI’s low projection shows it. Most economists say 1-2% -negative impact.

Just bcoz people are not protesting that does not mean that they are condoning what govt is doing. The pain and sufferings people are facing in India especially rural India is indescribable, worse than natural calamity. Confidence in Indian economy has been severely dented by number of measures including Credit growth, greenfield investment and aggregate demand are on all time low due to DeMonetisation.

He advised Government should have consulted at least Yashwant Sinha, he is their own man. They could have consulted Mr Manmohan Singh. There are over 100 officers involved in budget making, till today its never leaked. What secrecy is this?, Why Nobody consulted?. To assume that India will go from 3% to 100% cashless in a matter of few months is an outlandish expectations.
Inflation has gone down because demand has gone down. But when there is no demand, no production is happening

He said,” I am affected. I am not being able to get my Rs 24000 and therefore I am complaining. You can’t trivialize a major blow to India’s economy. I’m sorry that PM is trivializing a major development in Indian economy.”.