Power of Babudom – Demonetization

While Babudom may have managed to derail demonetization somewhat, they may still end up losing the war.

While Babudom may have managed to derail demonetization somewhat, they may still end up losing the war.
While Babudom may have managed to derail demonetization somewhat, they may still end up losing the war.

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]P[/dropcap]rime Minister (PM) Modi announced on Nov 8 that till Dec 31 people can deposit any amount of the scrapped Rs.500 and Rs.1000 notes. He asked all mitrons (friends) to give him just 50 days (sirf pachas din). But on the 40th day he changed the rules. He now says that these notes worth Rs.5000 can be deposited only once before Dec 31. If you have to deposit more you will have to satisfy the bank manager why you couldn’t deposit earlier!! Incidentally this is the 59th rule introduced by the finance ministry to implement the demonetization program.

Corrupt bank officials have made a nonsense of his note bandi scheme. They have exchanged lakhs of crores of demonetized notes belonging to tax evaders into new currency for 30% commission.

Critics of Modi are quick to jump and accuse him of reneging on his promise. But what can the poor man do? Corrupt bank officials have made a nonsense of his note bandi scheme. They have exchanged lakhs of crores of demonetized notes belonging to tax evaders into new currency for 30% commission. In fact, demonetization, which was intended to deliver a body blow to domestic black money, has most ironically spawned a whole new industry in which many bank officials and agents have made thousands of crores of black money by exchanging defunct notes for new for hefty commissions.

It is really sad to see a corrupt bureaucracy bringing the prime minister of the world’s biggest democracy to his knees. Modi trusted the bureaucrats to implement his extremely well-intentioned scheme of demonetization. But, the babus, who have looted the nation more than the British, told him to take a walk. Modi thought, rather naively, that the officials would ensure the success of his scheme. He didn’t realise that power in India is in the hands of the bureaucrats. Modi may be receiving red carpet welcome in Washington, Moscow, Beijing etc. But back home it is the bureaucrats who call the shots. Dr. Subramanian Swamy, who is a senior MP of the ruling BJP, has to write to Modi to complain how certain officials of the finance ministry are preventing the Enforcement Directorate (ED) from acting against NDTV despite serious allegations of money laundering of crores of rupees. The ED had unearthed details of Karti Chidambaram’s alleged benami properties abroad. But it can’t proceed against him because of pressure from mysterious bureaucrats of the FM.

Some months ago, RSS ideologue, S Gurumurthy, had extensively written how a senior Income Tax official of Chennai was hounded by the top brass in Delhi after he commenced a probe against PC Chidambaram. The ED investigation into the Vasan Eye Care scam too has been effectively stymied. It appears that even though Arun Jaitley is the FM, certain powerful officials of his ministry are still loyal to Mr Chidambaram.

Soon after he announced his bold scheme some of his admirers said he deserves nothing short of a standing ovation from the nation. With a substantial portion of the unaccounted money now converted into new currency (thanks to corrupt bank officials) these Modi bhakts may well hide their heads behind the nearest sofas.

But there is hope. With some diligent investigation, it would be possible to locate the exact officers who indulged in this exercise. But this too will have to be done by the same Babus! Will they? Only time will tell.

Note:
1. Text in Blue points to additional data on the topic.
2. The views expressed here are those of the author and do not necessarily represent or reflect the views of PGurus.

Advocate and Senior Journalist who was formerly City Editor & Chief of Bureau of The Times of India, Mumbai. He has also served in the MumbaiMunicipal Council.
S Balakrishnan
Latest posts by S Balakrishnan (see all)

4 COMMENTS

  1. I commented here on pgurus quite some time ago that Jaitley would be Modi’s downfall.
    Perhaps, who knows, Jaitley misled Modi on purpose to political demise. Perhaps the heat in SC and the closeness to conviction on the 2G , NH etc were responsible.
    Modi was moving along fine till demonetization took place . Soon he will have to resign taking responsibility for Jaitley and Ambani’s twit Urjit’s failures.

  2. Mr Bala, it is clear from your article that, DEMONETISATION was not the solution to whatever problem the Prime Minister was wanting to resolve. It is his administrative failure and the failure of agencies that are setup for various functions viz IT, ED, etc. The Prime Minister cannot and should not blame anybody else but himself for the mess that his caprice has created.
    This guy has been a Chief Minister for 3 terms and now Prime Minister for about 2 years and if you want your readers to believe the Prime Minister did not know about the “Babus” and the power they wield; then, you are deliberately insulting the intelligence of your readers.
    By the way Mr Bala, you are also an advocate it’d have been more informative if your article had educated the readers on the legality of the exercise, the various constitutional violation if any that have taken place since Nov 8th 2016 and the rights of the masses and protection thereof from the capricious, fanciful diktats emanating from an individual or those authorised by him.

  3. Dear Author, You have NAILED it! For that matter, Everyone knows who are the Stooges of previous regime’s. Swamyji, is right! AJ has to be removed along with SKD and their loyalists. There has to be a massive revamping in the FM. And each and every official has to spied and exposed only Then the Schemes would be implemented properly. Another report on the same subject appeared in the Guardian news paper. http://www.sundayguardianlive.com/news/7718-lutyens-moles-work-damage-pm-modi

  4. Dr. Swamy has some personal enimity against another Tamilian Politician P Chidambaram
    Bala Sir I like your views on Intention of DEMO by NAMO.
    Hope Mr. Swamy did not link all the Banks Burocrats with PC or Congress for his own Political milage and use such media.
    A Million Doller Question.. where is the money deposited in 40 days?
    Why only 40℅ of ATMs are only working?
    Why Now Ally turning in to Foe?

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