P Chidambaram says note ban biggest scam of the year, yet to get Rs 2000 note

Chidambaram said, "The pain and sufferings people are facing in India especially rural India is indescribable, worse than natural calamity."

P Chidambaram says note ban biggest scam of the year, yet to get Rs 2000 note

In a scathing attack on Prime Minister Narendra Modi's demonetisation decision, former finance minister P Chidambaram said Demonetisation is the "biggest scam of the year" and claimed it to be a "thoughtless move", which has been condemned world wide.

The former minister was addressing the media at an event in Nagpur. He said, "I cannot get Rs 2000 note. How crores in Rs 2000 notes found their way to individuals being raided all over the country?"


He questioned government's calculations to withdraw Rs 24000 when banks don't have enough cash to dispense. He further said, "Every bank says- no cash. So how does the govt says there is cash? This is why Dr Manmohan Singh monumental mismanagement."

He questioned the reason for excluding District Cooperative Central Banks as this is "punishing farmers as they have no money to buy seeds, to hire labour or buy fertilisers."

"45 crore people have been affected due to this, who will compensate them?"

He further said that major economists and newspaper across world have termed this most absurd move of the government, and that no one has good thing to say about demonetisation.

"Goal post is shifting,it is no longer about black money, now they have found a new one called cashless economy."

"Which country has cashless economy? Does US? Does Singapore have it? Where is electricity in country? Where are the machines?

"In fact whole game may have been to lure people into keeping Rs 2000 notes and then declare it illegal,ultimately poor people are punished

"It has broken the back of poor people, a case of khoda pahad nikli chuhiya"

He further alleged that rich are not affected, but only poor are hurt. He advised that "If they had to withdraw higher denomination notes, they could have done in the course of one year."

He said that the long term impact of demonetisation would negatively affect GDP. Even RBI's low projection shows it, even most economists say 1-2 per cent of negative impact, he said

He said, "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 but the most important being demonetisation.

"Look at the numbers, Credit growth is the lowest in 20 years, green field investments and aggregate demand have gone down

"Government should have consulted at least Yashwant Sinha, he is their own man. They could have consulted Manmohan Singh

He also said, "There are over a 100 officers involved in budget making, till today its never leaked. What secrecy is this? Nobody consulted."

He said, "To assume that India will go from 3% to 100% cashless in a matter of few months is a outlandish expectations."

"You can’t trivialise a major blow to India’s economy. I'm sorry that PM is trivialising a major development in Indian economy," Chidambaram said.