Black Money: Demonetisation was ineffective in checking black money: Former CEC OP Rawat

After former Chief Economic Advisor Arvind Subramanian’s comments on demonetisation, now recently-retired Chief Election Commissioner Om Prakash Rawat has said that note ban was ineffective in checking black money in India.

Two days after his retirement, Rawat said demonetisation didn’t reduce the use of misuse of black money in elections but in fact in some states more seizures were reported compared to previous years.

“After demonestisation it was thought that misuse of money during election will be brought down. But it couldn’t be proved on basis of the data of the seizures. Compared to previous elections, there were more seizures in the same states,” Rawat told ANI.

He said that it appears that the political class and their financiers have no dearth of money. “As far as black money used in elections is concerned, there was no check on it,” Rawat added.

Rawat, who retired on December 2, said that there should be a cap on expenditure by political parties during polls like individual limits. According to Rawat, the move may reduce the use of black money during the polls.

Currently, there is a cap on poll expenditure for individual candidates but there is no limit on the political parties spending.

Last week, former Chief Economic Advisor Arvind Subramanian had also raised concerns related to note ban. Six months after quitting the job, he described the note ban as a “massive, draconian, monetary shock” that accelerated economic slide to 6.8 per cent in the seven quarters after the decision against the 8 per cent recorded prior to it.

Subramanian has written his views in his upcoming book “Of Counsel: The Challenges of the Modi-Jaitley Economy.”

(Inputs from ANI & IANS)

via Black Money: Demonetisation was ineffective in checking black money: Former CEC OP Rawat

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