Wednesday, December 7, 2016

VOX POPULI

by

S Kamat
as
Aam Admi

Issue: 178          Date:  05.12.2016



NOTE: There was no issue of the Vox Populi dated 28.11.2016. Considering that demonetisation has been at the forefront of our minds this last month, I am attaching a short story written by K G Mallya on the Rs. 2000 note and the reactions of Gandhiji to it if he were alive, to start this issue of Vox Populi. 

Contents:

        1. THE STORY OF Rs.2000/- NOTE by K G Mallya
        2.  Australia & England Are Bad Losers
       3.   Demonetisation Creates The New 'Normal'
       4.   Modi's 'New Normals'


THE STORY OF Rs.2000/- NOTE

By K.G.Mallya

When our Government had withdrawn the circulation Rs.500/- and Rs.1000/- Currency Notes with effect from the midnight of 8th Nov., 2016, I was on a brief visit to Ahmedabad. During my visits to Ahmedabad every time, I usually pay a visit to the Sabarmati Ashram where Bapuji had spent a few years. And I am glad that during each and every visit, Bapuji would spare some time to talk to me clarifying certain points wherever I have doubts. When I reached the Ashram, I could see Bapuji at his spinning wheel as usual, to take the thread from the cotton piece. He was totally absorbed in the unending the task of spinning and taking the thread. To draw his attention I loudly said, “Bapuji, Namaste!” and before he could reciprocate I climbed the steps and reached him and sat before him on the mat meant for the visitors.  Bapuji adjusted his specs and looked at me and affectionately asked, “Brother, when did you come?” I answered, “Bapuji, I am here on some personal work and as you know, whenever I come down to Ahmedabad, I make it a point to call on you, see personally how do you maintain your health and after getting your blessings I take leave. This is going on ever since I came to know that you are the Father of our Nation.” 

“Well, I am happy!” Gandhiji expressed: “I am glad that at least there are some persons like you who adore me as the Father of the Nation! Now tell me what brought you over here?”

“Bapuji,” I slowly began, “you may be aware that the Government has cancelled the Currency Notes of Rs.500/- and also Rs.1000/- And in their place a new Rs.2000/- note has been put into circulation. There is a lot of confusion in the minds of the people who were used to Rs.500/- Nobody can get change of Rs.2000/- when the purchases are for goods and food-grains of Rs.500/- or so. ”….

“Well, well, well!” Bapuji laughed. Even I had felt that the one new note of Rs.2000/- is given in exchange of old Rs.500/-Note. I was really happy that it is a very good gesture of the people in Authority devising a simple method of poverty eradication! For the old note of Rs.500/- a new note of Rs.2000/- is given in exchange! What a grand idea! He laughed and added hurriedly: “My impression was utterly wrong. Now tell me what do you want to say with regard to this new note of Rs.2000/-“

“Bapu, I just wanted to know before printing your portrait on the note did they seek your permission by showing you the specimen? For example in this note also there is your portrait. In the old note your picture was on the right hand side but now it is in the middle in the new note.  On the reverse there is a picture of our Mangalyaan satellite going round the Mars even now, serving as our great achievement in the space science.  How do you like the new note?”

“Well, well, well!” Bapuji seemed happy. “Every time they come here and show me the note to be brought out and every time I tell them to print in bold letters, our Upanishad Dictum, “Satyameva Jayate” which means “Truth alone will Triumph” But year after year it is printed in microscopic letters and in this note also it is just (in)visible. I think our country has achieved almost the Honesty Level and if that is the case it need not be printed at all! In fact when they presented the first note to me I thought that it is a Ticket to the Mars to fly by our Mangalyaan the fare of which is only Rs.2000/- I thought that our people in power are very generous by not levying exorbitant fare thus enabling more and more people especially the people below the poverty line to fly to Mars by our home-made Mangalyaan!”

After this humorous discussion, I felt that I should ask a question that is relevant to all. So I asked, “Bapuji, going by the reports in the print media, the change of currency notes has created a lot of confusion in the minds of people, especially the common man’s category. What is your observation on this?”

Bapuji became thoughtful for a while and then seriously said, “Any change, good or bad, people will not accept unless it is gradual. Money touches everybody’s life and so one must be more careful when changes are going to be implemented. Our Narendra is doing a good job sincerely and people must bear initial inconveniences patiently. It is just like taking a medicine to cure illness. Initially it will be sour and bitter but later the result will be pleasant and sweet. People must give adequate time for its operation and should not jump to conclusion. Ten or twenty days are not sufficient for such a large country with a huge population to respond favourably or immediately.”

I appreciated Bapuji’s views and asked, “Bapuji, I am convinced. Now the last question: By withdrawing the currency notes of a particular value, will this action weed out the black market or black money completely?”

“I doubt! Because by nature it is not a one shot affair!” Bapuji expressed rather worried: “Black money or black market depends entirely on the honesty and integrity of the people at large especially those who are in the public life and public service. The people in power must lead others by example. This should be a part of education not only in schools and colleges but also in all spheres. This is a very slow process as the roots have gone deep into the society in which we work and live and we cannot expect the miracles over night. Yet, it must be taken up earnestly on an ongoing basis. For the time being let us wait and watch the outcome of demonetization that has taken place just now!”…

( K.G.Mallya, Opp. Janata Auto Works, Main Road, Kinnigoli-574150)



Australia & England Are Bad Losers

After losing two Tests in a row to South Africa, the Australians came up with the accusation that the Springbok captain, Faf du Plessis had been involved in ball tampering in the recently concluded Hobart Test. The charge was that Plessis was sucking on a lolly and the viscous saliva from his mouth to polish the ball on one side. In a me-too kind of charge the English after losing the Vizag Test charged the Indian captain, Virat Kohli similarly. The two countries, Australia and England used to be at the top of international cricket and at that time many a charge of bad behaviour on the field, sledging etc. used to be brushed off by them. Now that both countries cricket is on the decline, they are coming up with these frivolous cooked-up charges which they should avoid and concentrate on playing good cricket. That is what is best for the game.

Demonetisation Creates The New 'Normal'

If Narendra Modi is proud of the demonetisation move and in the manner of its implementation he should as a member of Parliament and respecting the status of it as one of the pillars of democracy in India, should address both Houses of Parliament. Avoiding going to Parliament is an insult to the august House to which he also belongs and in turn the constituency - Varanasi, that he represents and also the whole of India. Creating an App and seeking people's responses is not enough since to get a feel of the reactions it is important that he has a dialogue with the affected people and with their leaders. In a similar manner addressing public rallies without the option of a live feedback is also an infructious exercise and only serves to lubricate the speaker's opinions and satisfies himself that he 'has gone to the people'. Though the demonetisation move is desirable what it has ended up is having what used to be called the 'licence' or 'permit' raj in another incarnation launched across India where your own money you are asked to draw in trickles, for your children's wedding you are 'given' a certain amount and told how you should spend it and farmers are given money to buy seeds and not fertiliser. This is the highest form of interference in personal liberties and for a country like India whose name was counted as an example of a functional democracy we are slowly but surely eroding that image. All this because the demonetisation move was timed wrong. When Arun Jaitley says that Narendra Modi is creating the new 'normal', it is very much so considering that you can today have money like the new Rs. 2000 note which you cannot spend because you cannot get change thus giving you the feeling of being rich without actually being so.

                                                               Modi's New Normals

Arun Jaitley has correctly said that PM Narendra Modi is setting 'new normals' in India. The first among these is that if even one has a definite opinion about any government policy measure and/or initiative then one should not express it since like in the context of the demonetisation measure, one risks of being branded one of three things, a mouthpiece for those having black money or having black money or being called anti-national or being against national interest. These were the same arguments in the case of cow slaughter and earlier to that, when  the intolerance issue was expressed over secularism.
The second 'new normal' is that Narendra Modi after ranting against those who looted the country for 70 years and amassed black money; he even shed crocodile tears on the issue twice while speaking publicly and then what did he go out and do but allowed the black money holders to continue amassing their ill-gotten wealth. How is that but by accomodating them to do it in the smaller size new notes of Rs. 500 & Rs. 2000, so that with the existing space they can store more black money! So for 'new' black money you have a 'new normal'. And now they are Modi's new black money holders!

It is important for our leaders and politicians to clearly know that any project, initiative or measure be it in the private or government domain has a cost associated with it which is two-fold - the economic cost and the human cost. Thus irrespective of the paramount importance of the measure to our society and/or country, we may have to give it up entirely or defer it depending on what is the cost of it and its resultant impact on the people. The quality of our leadership in normal times is determined by how they select such of these projects/measures which can be implemented at the minimal cost to the society and the exchequer. In the present demonetisation measure, Narendra Modi and his government has miserably failed on this yardstick. Even though Modi has been trying to clothe himself in the robes of a savior of the poor and the slayer of black money and corruption, the gains of the demonetization exercise has been minimal while the pain to the people has been the maximum. The unfortunate part is that the pain to the people because of the cash shortage is continuing with no end in sight for the next 5 months. Moreover more than 80 people have died in the queues in front of banks and in cases incidental to the demonetisation since 8th Nov 2016 which the government is tending to ignore along with our Parliamentarians in the Opposition. The families of the people who died in these conditions should get a public apology from Modi for unleashing the tsunami of anxiety stress, chaos and confusion on them along with a promise for substantial compensation. Thus the third ‘new normal’ of Narendra Modi is that I will do what I like and the people of India be damned. These are signs of an immature, insensitive and incompetent government.

 The fourth ‘new normal’ of Narendra Modi is that ‘things will take care of themselves’. This is being stated considering how the demonetisation measure has been implemented. Any school kid in the primary school would have told Modi that without the new Rs. 500 note the exercise of replacement currency would not work. The reason being that the Rs. 500 given the inflation prevailing has become the old Rs. 100 note in purchasing power and with the Rs. 2000 note would have allowed people to change money. Thus the exchange of the old demonetised notes up to Rs. 4000 starting Nov 10th should have been done with 1x Rs. 2000 note and 4 x Rs. 500 note . And if the new Rs. 500 note was not available then the demonetisation measure should have been postponed. It could have been implemented later when sufficient quantity of the new Rs. 500 notes became available getting the same results as the present demonetisation measure but with considerably less pain to the people. Why did Narendra Modi go ahead with the demonetisation measure without the new Rs. 500 note? -  will be the Rs. 10 crore question in the next season of Kaun Banega Crorepati! It is not just that but the knee-jerk reactions of how much cash could be drawn by people from their own accounts and for what purpose show a completely amateurish unawareness and complete disregard of what happens on the street. The thing is continuing till this day some 30 days from Nov 8 when demonetisation was announced. And as one can see people have been left to manage by themselves as sector after sector of trade and business gets hit across the country and moves down to a lower level of activity. The cash scarcity has started pinching many of the embassies of foreign countries in Delhi and countries like notably Russia have threatened to impose reciprocatory restrictions on Indian embassies in their countries. However, inspite of this Narendra Modi and his government continue to remain in denial on the travails of the prevailing cash shortage. It is curious here that that while people are queuing  up at banks to withdraw currency and small businesses are being rationed cash, there are seizures of new currency running into lakhs and crores across the country mostly from people linked with the BJP. There obviously seems to be a leak in the currency allotment process by RBI and the banks where the ruling dispensation is getting preferential allotment of currency at the cost of the common people. One also wonders why this aspect has not been taken up by the Opposition political parties in Parliament?  

The fifth ‘new normal’ that Narendra Modi has established is to ‘change the topic and attempt to divert it desperately’. Thus in the unfolding days after banks opened on 10th Nov 2016 post-demonetisation and Modi saw the chaos being generated across India he immediately started singing the paens of a cashless society and encouraged people to go cash-less. This knowing full well that the coverage of mobile ownership and mobile coverage not exceeding to all parts of the country. The attempt was to divert attention away from the cash shortage at any costs. Say anything, do anything but move the spotlight away from the queues at the banks and the woes of no cash. Asking people to move away to cashless transactions in a big way without actually testing these networks and systems for being strong enough to be true to deliver valid and correct transactions in large volume and resolute enough to prevent malpractices like hacking etc. was completely  irresponsible. We had lately seen how international gangs had hacked through the ATM network of some of our banks and withdrawn large sums of money which was the immediate past precedent of the risks involved. The original objectives of the demonetisation exercise announced on 8th Nov 2016 were to eliminate black money and corruption, fight counterfeiting and funding of terrorism. Now these are being de-emphasised to focus on cashless economy like in 'developed' countries etc. etc. since it has been proven that very little black money was impacted by the demonetisation, corruption continues unabated. 

The sixth ‘new normal’ that Narendra Modi has established is to - 'Associate with Industry and Blatantly Promote Big Business'. The links of Modi with the Adani group are well-known and the present demonetisation crisis has brought to the fore that the PM prefers to associate with Reliance Jio, Paytm and other Cos. in the communications sector like feature phone and smart phone Cos., the latter being essential for cashless operations. Not in the last 70 years has a smiling PM figured in full page ads taken out by corporates like Reliance and Paytm in national newspapers across the country. 

The seventh ‘new normal’ that Narendra Modi has established is to - Bring Back Inspector and Licence Raj In A New Avatar. The moment banks re-opened on 10th Nov 2016 to proceed with handling the demonetised notes, we have been receiving multiple advice which at times has been contradicting. Like all deposits exceeding Rs. 25,000 of old notes in bank accounts would need PAN nos. which earlier used to be Rs. 50,000, and then revised to Rs. 50,000. That any deposits above Rs. 2.5 Lakhs of old notes would be issued IT notices, revised later to Rs. 1.25 Lakhs. Just imagine with the volume of such notes coming into the banks and also as deposits, the huge amount of data will by itself encourage errors and then selective choice of certain individuals to be targeted. This is nothing but the old inspector raj in its new reincarnation of 'raid raj'. With just about a month of the banking system handling the cash shortage they are coming apart at the seams and the bank unions have been complaining that something drastic has to be done to improve the situation. In another quarter the same situation will be evident with the IT Officers Association who will be shouting from the rooftops that they are being saddled with unnecessary extra work. The reason for this is that almost all the demonetised currency has come back to the banks except to the extent of maybe 10% which as we go towards Dec 31st maybe also coming in leaving a miniscule amount left back. This would mean that most of it was legitimate money in the hands of the people, maybe with little amounts that was avoided in income tax. Thus the present crowing about tax recovery on these deposited amounts will add to the exchequer may also turn out to be a wrong hill that the authorities are barking up since a large part of it may be already taxed which the IT Dept. will realise at the end of the day. This leaves only the amounts that have come into the Jan Dhan accounts. Now these amounts will get locked in litigation either way and it will take many years before this puzzle is resolved. Thus with almost all demonetised notes coming back into the banking system Modi will not have the moolah to give to the Jan Dhan account holders as their bonanza  and he will not also be able touch the deposits in the Jan Dhan accounts due to legal reasons. Thus what would have the demonetisation achieved but minimal gains than that expected making it the biggest political scam for the last 70 years just for bad planning and implementation. Hereafter in free India no government will ever dare to  demonetise any currency any more for the next 100 years after Narendra Modi's blunder and fiasco that he set off on 8th Nov 2016. 
Concluding one must say why no one be it in government, RBI, trade or industry has had the sense to advise Narendra Modi on this demonetisation and similar governance matters that these may be wrong and not in the best interests of the country and its people, but just stand around and nod their heads like 'yes-men'. If this continues a day will come when the Prime Minister will walk into a prestigious function only in his underwear and we will all be in praise of the Emperor's new clothes!


MODI'S NEW NORMALS:

1. Stifle Public Opinion. Restrict The Fundamental Right of Free Speech.

2. New Black Money & Their Holders Are Welcome.

3. Ignore Public Sentiment & Impose Needless Pain On The People.

4. Avoid Confontation of Issues In The Belief That Things Will Take Care of Themselves. 

5. Keep Changing The Dialogue Since Public Memory Is Short.

6. Associate With Industry & Blatantly Promote Big Business. 

7. Bring Back Inspector & Licence Raj In A New Avatar. 

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