Dinesh Kamath's Editorial 'Demonetisation does not appear to be a failure' that was published in Newsband

Demonetisation does not appear to be a failure

Income tax authorities, after demonetization, are netting bigger fish than they may have expected. They have implicated not only mining barons and contractors, but also government officials and politicians. More high-profile personalities will come under the scanner of the enforcement agencies. In the first few days after the demonetisation announcement, several unscrupulous officials of both public sector and private banks conspired to convert demonetised notes to benefit black marketeers and corrupt public servants. This is surely an all-India phenomenon.

It was the demonetisation drive that enabled the law enforcement agencies to get to some of the money-launderers. But this could be just the tip of the iceberg. It is yet difficult to answer the question whether the demonetisation drive has been effective in unearthing black money?

The government has accepted that only 1% of India's more than 125 Crore population pays Income Tax. There are many who say that demonetisation is a counter disruptive mechanism to the disruptive forces out to destroy orderly economic growth, probity and integrity at all levels in the society and the nation's security.  The tip of the iceberg is found, it's time to slowly but surely discover rest of the iceberg.

It is not understood yet as to why politicians like Arvind Kejriwal, Rahul Gandhi, Mamata Bannerjee and Mayawati and some of the comrades from the left put all their efforts in denouncing the demonetisation with rooting out corruption as one of the core objectives behind the move? The nation had displayed infinite patience while witnessing thousands of crores worth scams in past decade. Small steps, but thankfully in the right direction must be appreciated.

Like in the IT field for every good software, there is a virus software trying to spoil the system, in the drive against black money, the hoarders invent dubious methods to whiten their black money. Many influential persons could be hoarding old currencies and hopeful of extension of the 30^th December by another three months at least. In the meanwhile only a detailed investigation by RBI and Finance ministry will tell us the amount of black money unearthed.

Demonetization does not appear to be a failure. Many political parties have been stuck with cash and unable to change the same. The sudden low key political campaigns in states going to polls like Punjab, UP and Goa shows how this has definitely affected political parties. The recent extradition of the Fake Currency Courier King Pin Abdul Salam by Saudi shows there is an impact on the circulation fake currency. Since Fake currency is no longer printed, this gentleman is no longer of use to Pakistan. Demonetization is a multi purpose action not aimed at Black Money alone though that is the significant reason. The PM has mentioned that there will be more steps towards black money eradication – at least this PM is doing something for the nation instead of family.