When Morarji Desai sprang a similar surprise 38 years ago
NEW DELHI: Thirty eight years ago, it was a hush-hush cabinet meeting on January 16 where the decision to demonetise high value currency notes was taken.
“Cabinet ministers were rung up half an hour before the scheduled time and asked to assemble at the residence of Mr Desai ( Morarji Desai—then Prime Minister), 1 Safdarjung Road,” reads a report of Hindustan Times dated January 16.
At the time, Desai didn’t give ministers any clue about the decision. Keeping in line, Prime Minister Narendra Modi announced that he kept the move secret and no officials had any information in advance about the drive.
“Modi undertook a much bigger exercise,” says HK Dua, an editor and former Rajya Sabha MP. “In 1978, how many people could have `1000 or `10,000 banknotes? Very few. But now even a chaiwala (tea-seller) has a `500 note.”
According to observers, the reasons behind the move were much the same in 1978. Desai too, took the stand that higher denomination notes are leading to “illicit transfer of money”.
“Beside the PM, the only two other ministers who were associated with the processing of the decision earlier, namely, finance minister HM Patel and the law JAN 16, 1978 minister, Mr Shanti Bhushan,” said the report in HT.
Modi’s decision has led to critical reaction from the Congress, the principal opposition party. The Party’s vice-president, Rahul Gandhi, questioned the PM’s commitment towards farmers, small traders and housewives.
Unlike the present, the Congress supported the move in 1978. “In 1978, the impact was low and there was hardly any political protest to the move,” recalls Dua.
President Pranab Mukherjee who was a former minister of state (finance) in 1984, lauded the move in both years. “The government should take more vigorous steps to stop operation of black money,” Mukherjee said then.
Desai got a Presidential P ACHYUTA RAO, Activist, Hyderabad ordinance promulgated on the evening of January 16, to move to demonetise the currency.
Meanwhile, Congress general secretary Janardan Dwivedi on Wednesday sought to compliment the Prime Minister, noting that he has started remembering his poll promises and said at least for today “socialism has been ushered in India”.
“It is good that it appeared the PM has started remembering the poll promises,” he told PTI. In an apparent reference to the situation caused by the demonetisation, he said at least today “socialism has been ushered in India” in view of the fact that those who have lot of resources and those who are ‘have nots’ have become equal.
The government is habituated to making such last minute announcements like price hike that badly affect the public. I think this is a very good decision. People who have earned money with honesty and are tax payers, they have nothing to worry about. They can get their notes exchanged easily.
AJAY MISHRA, Social worker