Demonetisation has turned into 'economic anarchy': Mungekar

Economist Bhalchandra Mungekar today termed demonetisation as a "good plan with worst method", say it has turned into an "economic anarchy" and demanded immediate roll back of Rs 2,000 notes claiming it will further generate black money in the country.

"Initially I supported the cause, but when things unfolded, it became clear that the government was absolutely in dark about the magnitude of the challenges being faced by the common man of the country. And now I am of the view that this (demonetisation) has turned into an economic anarchy and total disruption," Mungekar told reporters here.

Mungekar, the former member of the erstwhile Planning Commission, demanded the government should roll back Rs 2,000 notes and speed up printing of Rs 10, 20, 50 and 100 notes so that it can solve the problem of instant scarcity of lower denomination liquidity.
 

"It is distressing that there is almost zero implementation plan and road map with the Finance ministry and the RBI. To the best of my knowledge, the RBI has issued circular to all banks to make available only Rs 100 notes to 10 per cent ATMs across the country. Why it did so late," Mungekar questioned.

Alleging "greatest blunders" in the drive against the black money, Mungekar, said, "Why is it that nobody from the Ministry or RBI has yet explained the rationale of introducing Rs 2,000 notes. Finance Minister Arun Jaitley must answer this in Parliament tomorrow."

"Rs 2,000 currency notes will facilitate hoardings of black money in the immediate future and facilitate the process of conversion of currency to asset such as gold, diamonds and other assets. The rise in gold price was a live example," the economist said.

He said there should be no currency beyond Rs 500.

Mungekar said, "What the nation immediately needs is a proper action plan to reduce hardship, not empty rhetoric and emotional appeals."

"The government is asking people to bear with it for 50 days. I ask who are these (people), who are standing in the endless queues? They are lower and lower middle class, workers, small retailers. How many of the supposedly black moneyed are seen in these queues," he added.

In a surprise decision last week, the Centre had scrapped currency notes of Rs 1000 and Rs 500.