CEC OP Rawat Interview: ‘Note ban had absolutely no impact on black money

After former Chief Economic Advisor Arvind Subramanian expresses his views on the prime minister and demonetisation, now recently-retired Chief Election Commissioner Om Prakash Rawat has expressed that note ban was ineffective in checking black money in India.

“After demonetisation it was thought that misuse of money during election will be brought down. But it couldn’t be proved on basis of the data of the seizures. Compared to previous elections, there were more seizures in the same states,” Rawat told ANI.

Two days after his retirement, Rawat said demonetisation didn’t reduce the use of misuse of black money in elections but in fact in some states more seizures were reported compared to previous years.

According to him, the political class and their financiers have no dearth of money. “As far as black money used in elections is concerned, there was no check on it,” Rawat added.

Last week, former Chief Economic Advisor Arvind Subramanian had also raised concerns related to note ban. Six months after quitting the job, he described the note ban as a “massive, draconian, monetary shock” that accelerated economic slide to 6.8 per cent in the seven quarters after the decision against the 8 per cent recorded prior to it.

Subramanian has expressed his thoughts about the overnight nationwide shock of demonetisations in his upcoming book “Of Counsel: The Challenges of the Modi-Jaitley Economy.”

Rawat, who retired on December 2, said that there should be a cap on expenditure by political parties during polls like individual limits. According to Rawat, the move may reduce the use of black money during the polls.

Saurabh Chopra

With a blend of vivid areas of interest, Saurabh is a passionate reader and a news writer. He is always enthusiastic and proactive in finding the latest in his fields of interest. Saurabh is also a keen observer in the economic and business pits and falls.

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