With the NDA government suddenly shaking up the currency system by devaluing high-denomination notes, the country is witnessing a lot of chaos. Assam and other NE states too are bearing the brunt as people scramble to exchange their worthless Rs 500 and Rs 1000 notes for new notes. As for ATMs, it will take quite a few days to provide cash regularly. This demonetization move has been taken to flush out unaccounted money from the system, most of it being stored in high denomination notes. Those who avoided paying tax on this money ignoring amnesty windows the government had offered, now find themselves holding useless cash. Given the secrecy and suddenness of the Centre’s move, it is likely those holding such money would have had little time to use the hawala route to convert money or to pump that money into real estate. Those who went out on Tuesday night to park their money in gold or jewelry are likely to have the taxmen at their doors, who are already raiding the bullion merchants and jewelers. Depositing unaccounted money into one’s bank account or converting it will now invite questions from the I-T department, and prosecution if answers are not satisfactory. Whether this shake-up fulfills the government’s objective remains to be seen, but it is likely to make people think about the role and value of money. We get money depending on the value the market pins on the fruits of our work; and we use that money as a medium to get other goods or services in exchange. This is what we learn at school, but over the years, money in high denomination notes had become a sort of commodity that people wanted to hold on to. In particular, corrupt politicians and public officials stashed away such money in secret hoards. It was the source of power which allowed them to get their way over others. And of course, this money had to be black, kept hidden to avoid questions how it was obtained in the first place. This has been the case with such officials in Dispur and numerous government offices across Assam. Many political leaders in the State too kept loads of unaccounted cash to peddle influence, keep supporters happy and buy votes. Similarly, criminals and terrorists too kept clandestine piles of cash to finance their nefarious activities. For all these people, this ‘bad’ currency flushout has come as just punishment. Source: The Sentinel
