Demonetisation struck at root of parallel black economy: President

President Ram Nath Kovind on Thursday lauded the Prime Minister Narendra Modi-led central government's demonetisation move and said that it had "struck at the very root" of the country's parallel black economy.

"Demonetisation was a defining moment in the Government's war on corruption and black money. This decision struck at the very root of the parallel economy thriving on black money, and the money outside the formal system was brought within the ambit of the nation's economy," President Kovind said in his address to the Joint Sitting of both Houses of Parliament of the Budget Session.

"This action of the government broke the back of the forces destabilising the country, and the systems sustaining the flow of black money. The registration of 3 lakh 38 thousand dubious shell companies responsible for the flow of black money have been annulled by the government. The directors of these companies have also been prohibited from holding such offices again," he added.

President Kovind went on to add that "assets worth more than Rs 50,000 crore are being confiscated under the Benami Property Act, Prevention of Money Laundering Act and the law against fugitive economic offenders."

"As a result of the policies of my government, black money in real estate sector has declined substantially, the prices of houses have come down and the dream of a normal middle-class family for possessing their own house is being realised," he added.

Prime Minister Narendra Modi on 8 November 2016, announced the demonetisation of all Rs 500 and Rs 1,000 banknotes.

The Budget Session of Parliament commenced on Thursday and the interim Budget will be presented on Friday.

The session, which will continue till February 13, will have 10 sittings.

This will be the last session of the Lok Sabha before the general elections.