Demonetisation biggest scam of the year, worse than a natural calamity: P Chidambaram

Former Finance Minister P Chidambaram lashed out at the Narendra Modi government on the issue of demonetisation and its implementation at a media address in Nagpur on Tuesday. Calling the move the biggest scam of the year, he said that the people would not forget what is being done to them or forgive the government for it.

This was the second instance when the former minister and senior Congress leader publicly castigated the government on the issue since the November 8 announcement.

Introduction of Rs 2000 note a puzzle, says P Chidambaram on demonetisation

Here are the highlights of his speech: 

• The pain and suffering people are facing in India, especially rural India, is indescribable, worse than a natural calamity. Even a natural calamity might not cause so much of trouble.
• This is the biggest scam of the year and must be investigated.
• I believe people will not forget what is being done to them and will certainly not forgive the government for it.
• Inflation has gone down because demand has gone down. But when there is no demand, no production is happening.
• Look at the numbers, credit growth is the lowest in 20 years, green field investments and aggregate demand have gone down.
• Long term impacts will be negative in terms of GDP figures. Even the RBI's low projection shows it. Most economists say demonetisation will have a 1-2% negative impact.
• Government should have consulted at least Yashwant Sinha, he is their own man. They could have consulted Mr Manmohan Singh.
• Are you suggesting that the former PM if consulted by the present PM, will betray a secret?
• I cannot get a Rs 2000 note. How have crores in Rs 2000 notes found their way to individuals being raided all over the country?
• What calculations did the government make to say that one can withdraw Rs 24000 when banks don't have enough cash to dispense.
• Every bank says, “No cash”. So how does the government say there is cash? Just like Dr Manmohan Singh said, this is monumental mismanagement.
• Keeping out District Cooperative Central Banks (from currency exchange) is punishing farmers. There is no money for them to buy supplies.
• 45 crore people are dependent on daily wages. Who is going to compensate them?
• This was a thoughtless move, no one in the world has a good word for it. Every major economist and newspaper in the world has said that this is the most absurd of moves by the government.
• It is like motherhood & apple pie – no one speaks against them. Similarly no one will speak against cashless society.
• Has this stopped corruption, black money? The objective is not being served by this. Only poor people are being punished
• The goal post is shifting, it is no longer about black money now they have found a new one called cashless economy
• I went for a wedding the other day, and saw that the rich are not affected. It is the poor who are hurt.