Team Herald
PANJIM: On the first anniversary of demonetisation, Chief Minister Manohar Parrikar hailed Prime Minister Narendra Modi’s decision stating it is a severe blow to black money and the country is now progressing towards a digital economy.
“All illegal money in several lakh crores reached the government treasury through different deposits. It was the biggest exercise to unearth black money. This was hidden money which resulted in inflation and price rise. Demonetisation has brought price stability and black money circulation has also lessened. The circulation of money is now at the official level and it has also brought better compliance of the tax regime,” he claimed.
In connection with unearthing black money, when specifically asked by journalists, based on some media reports, whether raids were conducted by central investigative agencies on casinos and black money unearthed, the Chief Minister said, “Sections of the media have reported that in simultaneous raids by Enforcement Directorate and Income Tax sleuths across 36 places, they identified Rs 100 crore black money transactions linked with casino operations.”
Asked to clarify further he told Herald, “I’m only referring to some media reports. This is something that the central agencies carry out, not the State. I was referring to reports in a section of the media about this.”
On digitisation, the CM was asked if he would prefer casinos converting to cashless concept, he stated, “I will prefer everything to operate in cashless way.”
The former Defence minister, who was a member of the union cabinet when the demonetisation decision was taken, further said that the government has identified around Rs 3.58 lakh crore ‘without explanation’, while 4.75 lakh entries and bank accounts have come under scrutiny. Similarly, 17 lakh people are also under the scanner for questioning into questionable accounts/transactions.
“All those identified will now be asked an explanation and will be liable to pay tax or penalty and/or face prosecution,” he added.
Claiming that counterfeiting of notes has been curbed, he maintained that terror funding has come to a grinding halt. “Stone pelting incidents in Jammu & Kashmir and naxalite activities have reduced. All unauthorised activities have been curtailed,” the CM said.
He said demonetisation benefited the common man and small traders while the economy is progressing from cash to digital economy. Despite circulation of six lakh crore notes as against Rs 18 lakh crore deposited in the banks, Parrikar said the banking system is running smoothly. “Rs 12 lakh crore notes were issued again, but banking system is working smoothly,” he explained.
He clarified that donations to political parties should not be restricted to digital. “If you link big amounts to the source, there is every likelihood that the next government – if it changes hands – may target the company and the noble idea of official donations will be driven under. I believe, if you want to really get legal donations, though it should be legal face, it should be faceless as far as donor is concerned to protect his identity, so there is no backlash,” he stated.
