Will currency demonetisation assist catching any black money hoarders or corrupt people?

While watching TV in the evening today, It suddenly stuck me that the currency demonetisation will not assist Modi government in catching any significant number of individuals, bureaucrats, tax evaders, cops or politicians unless they make the blunder of depositing unaccounted money in the bank. Only stupid people will get caught.

What is surprising is that at the end of Dec 30, 2016, we will not even know who had black money or unaccounted money because people who have black money will not deposit the same in the bank as depositing the money would not only heavy penalty but also exposure that individual or firm to investigation. Whoever has unaccounted money in old notes will suffer the loss financially to the extent of unaccounted that is still lying with him on Dec 30, 2016 but will not be prosecuted because nobody will know that he had black money but which is now destroyed. The real big culprits will get away prosecution. They can later build up their stash of unaccounted money with fear as the government cannot go through demonetisation again and again frequently.

Actually, if demonetisation does not identify the culprits whom the Modi government can not only cause financial harm but also prosecute them for their misdeeds since 1947 as promised by Mr Modi, it will not serve the purpose.

Avinash Narula

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