Statement of National convenor of SJM on Demonetization of high value notes

SJM welcomes the announcement of Prime Minister demonetising Rs. 500 & Rs. 1000 currency notes from midnight of November 8, 2016 to eliminate black money & take out fake currency from circulation. SJM has been campaigning for effective action against black money and counterfeit currency including for bringing back the black money stashed abroad.

This recent demonetisation will eliminate black money deposited in cash to large extent. Earlier also, in the year 2015 and from June 1st, 2016 to September 30, 2016 government had announced voluntary declaration scheme. Under both these schemes Rs. 4147 crores and 65,250 crore were declared respectively. During same period US $380 billion black money that is Rs. 25,40,000 crore were declared in Indonesia. Out of which 180 billion dollors that is Rs. 12,00,000 crore black money was stashed offshore.

By comparison mere Rs. 4147 crore declaration of offshore black money in India means the black money stashed away by Indians abroad is still intact. Therefore exposure of black money stashed abroad and taking effective steps to bring that black is necessary.

Tax evasion by MNCs through transfer pricing or by round tripping the incomes through tax free zones and investment of black money through participatory notes also need to be effectively curbed to contain black money.