BJP MPs stall adoption of Parliamentary panel report critical of demonetisation

There are also reports that Norbert Haring, a noted German economist, has claimed that Washington was behind the Prime Minister Narendra Modi’s announcement of demonetizing the old Rs 500 and Rs 1,000 notes, thus abolishing over 80 percent of circulating cash by value.

The Bharatiya Janata Party cancelled any sort of discussion or the adoption of a draft report prepared by parliamentary standing committee on Finance that severely criticised the demonetisation, the decision taken solely by Prime Minister Narendra Modi, as an “ill-conceived” exercise that led to the reduction in the Gross Domestic Product by at least 1 percentage point.

The Parliamentary Standing Committee on Finance, headed by Congress MP Veerappa Moily and of which former Prime Minister Manmohan Singh is also a member, had been looking into the issue of demonetisation. The panel had also called RBI governor Urjit Patel and top officials of the Finance Ministry to deliberate upon the issue.

The Bharatiya Janata Party, using its majority in the 31- parliamentary standing committee on finance, managed to stall the report and saved the Modi government from criticism in the Parliament.

The report is overall critical of the demonetisation decision and was set to be tabled in Parliament.

There are also reports that Norbert Haring, a noted German economist, has claimed that Washington was behind the Prime Minister Narendra Modi’s announcement of demonetising the old Rs 500 and Rs 1,000 notes, abolishing over 80 percent of circulating cash by value.

Some members of the panel had sought redrafting of the report as the RBI at that time had not provided some crucial details such as the quantum of the junked Rs 500 and 1,000 notes.

BJP MP Nishikant Dubey noted that since the Reserve Bank has not provided all details and replies to the questions asked by the members of the panel, the document is not complete, the sources said.

RBI governor Urjit Patel had appeared before the panel twice, but the central bank is yet to share details about the number junked notes submitted to banks during demonetisation, announced in November.

The panel had also called all top finance ministry officials while deliberating over the note-ban issue. The members also objected to, and demanded redrafting of, the panel’s report on NSSO data and GDP numbers.

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