Narendra Modi defends note ban in Lok Sabha

The timing of demonetisation was perfect, as the economy was doing well, says Modi

The decision to ban high value currencies was dedicated to the poor of the country, Prime Minister Narendra Modi said on Tuesday.

In his reply to the discussion on the motion of thanks to the President’s address, the PM said the timing of demonetisation was perfect, as the economy was doing well. But he did not share any details on the amount of currency returned to the banking system.

Rival political parties have been making the chaos wrought by demonetisation a major plank of their respective election campaigns for the Uttar Pradesh Assembly polls. To counter that, Modi portrayed his government as one for the welfare of the poor.

To counter Congress allegations that his was a suit-boot ki sarkar, the PM detailed the number of schemes launched for the underprivileged and marginalised sections. He said his government has done more for the betterment of the poor, Dalits, farmers and other weaker sections.

On why November 8 was chosen to announce demonetisation, the PM said the period after Diwali was usually one when the business cycle subsided after peaking during the festival season. Modi said he was aware there would be some problems for 15-20 days and things would move towards normalcy in 50 days. “Today, I can see that whatever I had analysed, we are moving in that direction.”

In his 90-minute speech, which witnessed frequent protests from Opposition benches, the PM said: “Some people have asked why this (demonetisation) decision was taken when the economy was doing well... It was the best time for demonetisation, as the economy was strong. Had the economy been weak, we could not have done it successfully.”

The PM also sought to counter accusations that the note ban decision was taken in a hurry. “Don’t assume that Modi does anything in haste. For that, you will need to study Modi.” In Rajya Sabha, Finance Minister Arun Jaitley told the House during Question Hour that consultations were on since February 2016. In his speech, the PM conceded that demonetisation caused “difficulties” to the people. He argued the decision was not taken for any electoral benefits but for the benefit of the poor. 

The PM listed the several steps that his government has taken to check black money. “Had it been for political benefit, you would have done it,” he told the Congress. To criticism on the changing of rules ‘150 times’ after November 8, Modi said it was done to find ways to ease problems of people and also to stay two steps ahead of those trying to beat the system. He said the Congress-led United Progressive Alliance government had amended rules of its rural job guarantee scheme 1,035 times in six years. 

Modi said demonetisation has brought everything on  record, including details of who has deposited how much money. “Now by use of technology and data mining, top names would be culled without an income tax officer needing to go anywhere. They can just send an SMS.”

He said the Supreme Court had observed in March 2014 that “since 1947, nobody in the past 65 years thought of bringing back black money stashed in foreign bank accounts. The government has failed in its role for 65 years.”

The PM asked the Congress why Rajiv Gandhi, who commanded the biggest mandate till date, never notified the Benami Law, which is hanging fire since 1988. The PM said Opposition leaders had criticised the surgical strikes but changed tack when they saw public support. “I am asked why demonetisation was kept a secret. But nobody asks why the surgical strike was kept a secret.”

The President’s address was later adopted by the House amid a Congress walkout. The Lok Sabha, where the National Democratic Alliance has a clear majority, negated all the 190 amendments moved by the Opposition.