Last year, BJP MPs rejected the report, which reportedly says demonetisation failed to achieve its objectives of of curbing black money, terrorism.
New Delhi: The political battle over demonetisation is set to escalate in the coming weeks, with the chairman of the parliamentary standing committee on finance, Congress MP Veerappa Moily, preparing to revive a draft report that faulted the Modi government’s decision.
The draft report had been rejected by BJP MPs on the committee last year, preventing it from being adopted. It reportedly says that demonetisation failed to achieve its stated objectives of curbing black money, terrorism and counterfeit currency.
Adoption of a report questioning the impact of demonetisation by a parliamentary committee could be projected by the opposition parties as a vindication of their stand against the NDA government’s move. It may put the ruling party on the back foot in an election year.
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Moily, his close aides said, has decided to convene a meeting of the committee shortly after the end of the Monsoon session of Parliament on 10 August, to re-visit the draft report rejected by ruling party MPs.
“The RBI governor, finance ministry officials and other stakeholders, in their depositions to the committee, failed to provide any evidence to suggest that demonetisation achieved what the Prime Minister said it would. The report is drafted on the basis of their submissions,” said a Congress MP who is a member of the committee.
Will never allow it: BJP MPs
The BJP MPs on the committee told ThePrint that they would “never allow” a report that criticises the government’s demonetisation decision.
“How can we allow the adoption of such a parliamentary committee report, which will then be tabled in Parliament?” said a BJP MP.
Ruling party members of the committee have already sent a signed letter to Moily, conveying their strong reservations against the report.
“We are in a majority in the committee. So, our opinion can’t go as dissent notes. The report has to reflect the majority view and those who have a different view can give their dissent notes,” said another BJP MP.
During his deposition to the committee in June, Reserve Bank of India governor Urjit Patel had been asked about the total value of demonetised notes that had returned to the banks post the move. He informed the committee that the counting of demonetised notes that were in circulation in Nepal and Bhutan was still in progress.
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The demonetisation of Rs 500 and Rs 1000 notes, announced by Prime Minister Narendra Modi in November 2016, has been a matter of intense political debate. The opposition parties have been critical of the move questioning its motive and impact on the economy and citing the hardships faced by the common man.
The BJP, however, showcased it as a move against black money and built a poor-versus-rich narrative that appeared to have benefited it in assembly elections last year. The perception in the opposition camp is that the narrative is now unravelling.