Hyderabad: Demonetisation of high-value currency notes, an idea voiced by Chief Minister N. Chandrababu Naidu, has been attempted before. In January 1978, all high-denomination banknotes Rs 10,000, Rs 5,000 and Rs 1,000 were demonetised to curb unaccounted money.
However, in order to contain the volume of banknotes in circulation due to inflation, the Rs 500 banknote was introduced in 1987, and the Rs 1,000 banknote in 2000.
A finance ministry report in 2012 had turned down a similar request as it felt bullion, gold and benami properties were the main constituents of the black economy and demonetising higher denomination notes would only increase the cost of printing currency. The AP Assembly later passed a resolution requesting the Centre to take steps to weed out corruption and stem the flow of black money.
Speaking after moving the resolution, Mr Naidu said he welcomed the Narendra Modi-led government’s move to constitute a SIT. He also welcomed the Centre’s move to write to the Swiss government requesting details of Indians holding bank accounts there.
YSR chief Y.S. Jagan Mohan Reddy also supported the resolution.
However, prior to its adoption, the discussion spiraled off towards accusations made by MLAs of the ruling and opposition parties against each other. Mr Jagan Mohan Reddy started off saying, “The recent elections will tell us how much black money has been spent by some parties.”
His remark was met with boos and shouts of “you have no right to speak.” Hinting at Mr Naidu, Mr Reddy then referred to money laundering accused Hasan Ali Khan’s book wherein he had mentioned a certain “Big Boss”.
“He wrote that prior to 2004, two chief ministers had received money. SIT should include these aspects also in its probe.” TD legislators retorted strongly to this, prompting Mr Reddy to remark: “I said he wrote Big Boss. I didn’t say your boss.”
He later added that the CPI had brought out a book titled Babu Zamaana, Avineeti Khazana, highlighting Mr Naidu’s alleged corruption. “In various cases against you, you have got stays on political grounds. You get a probe done on the IMG deal, truth will come out,” Mr Reddy said.
To this, finance minister Y. Ramakrishnudu retorted: “If you give lectures on corruption, it feels like ghosts chanting Vedic hymns. Nobody, except you, was in jail for 16 months. Nobody had their properties attached.”
