With upcoming elections in five states, this was an opportune time to weed out corrupt electoral practices.
Indian government’s surprise announcement to withdraw high denomination bills has set the country rolling. The swing in moods was visible in every stratum of society.
The sequence of events is well planned, beyond doubt.
In 2014, government encouraged the populous to open zero balance banks accounts under its ‘Jan Dhan Yojana’. This encouraged several families to enroll for free bank accounts. This came with several benefits like getting an Rs. 30,000/- life cover. Following this, in 2015, it launched Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill. Apparently, this was to empower tax authorities to prosecute residents who have undeclared overseas assets. Then came the Income Disclosure Scheme (IDS) in June 2016. Here again people were given an opportunity to come clean regarding their undisclosed incomes after paying a hefty tax of 45 percent. This window was available for three months, starting June till September 30, 2016.
All this while the government kept warning people to disclose their income or face prosecution. Then another bill, Benami Transactions (Prohibition) Amendment Bill, was passed in July 2016 and implemented in August to prohibit benami transactions and prevent unfair practices.
In addition, the government signed several accords with foreign governments, including US, to incorporate provisions to share banking information.
As per government records, all these efforts in the last two and a half years have added about 19 billion dollars to the Indian economy.
Now, on Tuesday night, as much of the World was busy following US presidential elections, comes a master stroke to cleanse India of counterfeit and unaccounted monies.
“Brothers and sisters, to break the grip of corruption and black money, we have decided that the five hundred rupee and thousand rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016,” Prime Minister Narendra Modi said. “The five hundred and thousand rupee notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper.”
Modi continued: “The rights and the interests of honest, hard-working people will be fully protected. Let me assure you that notes of one hundred, fifty, twenty, ten, five, two and one rupee and all coins will remain legal tender and will not be affected.”
The government, however, has given sufficient time to the public to ensure convenient deposits. People have about 50 days to deposit the stripped currency bills in their bank or post office accounts; and there is no limit set for non-cash deposits such as checks, demand drafts, debit or credit cards and electronic fund transfer. Government agencies, however, would monitor all major transactions during this time.
The timing of the decision is commendable. While the nation is still grappling with the recent terrorist strikes and contemplating strategies to tackle neighboring countries of Pakistan and China, upcoming elections were demanding their own due attention.
According to sources, elections are the best time to utilize unaccounted money. It does not generate such money, but definitely helps in spending it.
As states of Punjab, Manipur, Goa, Uttarakhand and Uttar Pradesh prepare for polls, electorates are showered with cash in exchange for votes. But, this time at least some of it shall be curbed before the election code kicks in.
“Over the last few years, ever since the EC [Election Commission] started coming down hard on black money in polls, candidates and parties have started bribing voters early, much before the model code of conduct comes into effect. I think this decision has been announced at the right time, just ahead of five state elections,” former Chief Election Commissioner SY Quraishi said in an interview to the Indian Express.
“Parties and candidates, who were going to resort to bribery, would not now what they should do with that money now,”Quraishi added.
However, not everyone agrees, completely.
For instance, several interviews conducted by Daily World recently, hints that elections, especially in Punjab, would be fought with money and muscle, too.