PM Modi welcomes traders into cash-less fold; assures no post-mortem on bank deposits

NEW DELHI: Dismissing charges that the currency replacement drive was a hasty exercise, Prime Minister Narendra Modi sought to assuage the trader community by saying that there will be no “retrospective postmortem” of business activities to check if their new declarations were disproportionately larger than previous ones as they join the ‘mainstream’ of less-cash, digitised economy.

“I have instructed officials that there will be no retrospective post-mortem (of business activites)… otherwise, we cannot bring them into mainstream… I have also told the labour ministry not to have retrospective nitpicking of their books… whoever wants to join the mainstream should be given the opportunity,” Modi said while addressing a BJP parliamentary party meeting on the last day of the winter session on Friday.

Modi’s announcement is seen as a measure to dispel apprehensions of traders that disclosure of the scale of business could lead to questions on tax compliances of the past. Modi urged BJP MPs to communicate the message to small, cash-dependent businessmen and employers.

Modi said that he visualised a scene when it would take only 6 minutes to process loan applications of the business community on the basis of automatic business transaction records conducted on digital platforms being popularised by the government.

He invoked Chanakya saying “illgotten money cannot last beyond 10 years”, in an indirect dig at UPA’s 10 years’ rule while he attacked the Opposition for its criticism of the note replacement drive and asserted that this was a well-planned move where he was revealing his cards one by one.

“We do not think piecemeal. We think with full-scale designs. We reveal our cards one by one…We are proceeding with full-scale design in mind,” Modi said amid, mounting criticism that the government’s ‘illplanned’ move had caused hardships to the public. He indicated that his government was determined about effective use of legislation to deal with benami transactions as part of its ‘battle’ against black money and corruption.

Modi also provided an arsenal of political arguments to help BJP MPs counter the Opposition attack. Referring to extracts from the book of a former civil servant, Modi claimed that Indira Gandhi went back with a similar currency recall decision after her finance minister YB Chavan took the proposal to her on the basis of the Wanchoo Committee report of 1970.

“Indira asked, ‘Are no more elections to be fought by Congress Party?’” Prime Minister said referring to a book to assert that the “country needed in 1971 what we have done today… delay has cost us dearly… this raises questions whether party interests takes precedence over national interests (for Congress),” Modi said, attacking the Congress, while claiming that his government had given precedence to national interests over interests of the party.

The PM also recalled remarks of the late Communist MP Jyotirmoy Basu and CPM general secretary Harkishen Singh Surjeet in Parliament in the 70s and 80s favouring invalidation of high denomination notes to attack Left parties for their objections to the drive now.

Modi, however, did not hesitate to praise Odisha Chief Minister Naveen Patnaik and Bihar Chief Minister Nitish Kumar for their support to his decision, despite belonging to non-NDA parties. “Is ladai mein jo bhi saath de rahe hain, unhe saath leke humein aage badhna hai,” Modi said after praising Patnaik and Kumar.