Demonetisation an organised loot and legalised plunder, says Manmohan Singh

In the process of demonetisation monumental mismanagement has taken place, former PM says

Former prime minister Manmohan Singh on Thursday led the Opposition's charge on the issue of demonetisation and called it a case of organised loot and legalised plunder of the country.

The Winter Session of Parliament has witnessed repeated adjournment in both the Houses as Opposition was adamant on its demand for Prime Minister Narendra Modi's presence during the debate on demonetisation.

The debate in the Rajya Sabha commenced only when Modi attended the House.

"In the process of demonetisation monumental mismanagement has taken place. Even those who say that this measure will cause distress, in the short run, and it will be in the interest of the country in the long run reminds me of John Keynes' words, "In the long run we are all dead"," Singh said.

Attacking the Prime Minister on his request of giving him 50 days to cleanse the nation, Singh raised the trouble faced by the common man and the death of 60-65 people standing in long queues outside banks and ATMs.

"PM said we should wait 50 days. For those who are from the poor and deprived sections, even 50 days torture can bring about disastrous effect. I say, with all responsibility, that we do not know what will be the final outcome," Singh said.

"60-65 people have lost their lives. What has been done can erode our people's confidence in the currency and banking system. I would like to know from the PM, the names of any countries where people have deposited their money in the bank, but aren't allowed to withdraw their money," Singh questioned the Prime Minister.

Highlighting that the demonetisation will hurt the agricultural growth, small industry, Singh said, "This alone is enough to condemn what has been done in the name of greater good for the people. I would like to point out, that in my opinion, this scheme, the way it is implemented will hurt agricultural growth in our country, will hurt small industry and will hurt all those people who are in the informal sector of the economy."

Terming the forecast that GDP will decline by 2 percentage points due to demonetisation as an underestimation, Singh said, "The GDP of the country can decline by about 2 percentage points as a result of what has been done. This is an underestimate. I feel the PM must come with some constructive proposal of how we can implement this scheme and at the same time prevent the distress to the common people."

Singh also hit out at the government over new modifications done everyday in the banking process saying, "It is no good that everyday banks come with modifications of the rules under which people can withdraw money. This reflects very poorly on the PMO, Finance Minister's Office, & on the RBI. I am very sorry that the RBI has been exposed to this sort of criticism, which I think is fully justified."

Singh urged the Prime Minister to find practical and pragmatic ways and means to relieve the distress on the people.