NaidU takes credit for scrapping of notes

Naidu had written to the PM seeking withdrawal of high denomination notes.

that the idea was worth pursuing to check black money.

But Bokil is the one who sold the idea to Naidu almost four years ago. Bokil, who held a seminar on Artha Kranti in Ramoji Film City in Hyderabad on 2 December 2012, vigorously championed the cause of abolition of big currency notes from the market. Naidu’s TDP think tank was present at the seminar in full strength. Of course, Bokil’s proposals were even radical. He has been demanding that there was no need for any big notes, including Rs 100. In his view, the economy will smoothly run with notes of Rs 50 and lesser denominations and coins. Even the SIT (special investigation team) on black money headed by retired Supreme Court judge M.B. Shah, too, was in favour of abolition of big notes.

Naidu pressed for the abolition of Rs 500 and Rs 1,000 as recently as recently as 28 October when Union Finance Minister Arun Jaitley came to Amaravati to lay the foundation stone for the administrative complex of new AP capital. Jaitley publicly acknowledged that Naidu had been actively behind the demand to pull out big notes from circulation. Andhra Pradesh State Planning Board vice-chairman C. Kutumba Rao said that Naidu had done extensive work before demanding the cancellation of Rs 500 and Rs 1,000 notes.

Even on Thursday, Naidu felt that there was no need for a higher denomination like Rs 2,000 notes, and replacement of Rs 1,000 and Rs 500 notes. But should the Centre decide to introduce them for the sake of public convenience, their circulation can be restricted and smaller notes should be brought in circulation.

But Naidu’s clamour for cancellation of big notes is seen in AP politics as an attack against his political rival, YSR Congress leader Y.S. Jagan Mohan Reddy. Jagan, now facing several illegal assets cases filed by the CBI, is often accused of making at least Rs 50,000 crore worth of wealth when his late father Rajasekhara Reddy was CM.

Naidu had alleged that the distribution of notes in elections has become easier with the free availability of Rs 500 and Rs 1,000. According to them, although the money spent by political parties in the 2014 elections was offiially said to be about Rs 8,000 crore, it was actually around Rs 50,000 crore. Interestingly, the PM’s decision to do away with Rs 500 and Rs 1,000 notes was welcomed by the YSR Congress. “We welcome the decision to ban big notes, but we only request the Centre to see that ordinary people are not put to hardship,” YSR Congress senior leader Botsa Satyanarayana told this newspaper on phone. Even Telangana CM K. Chandrasekhar Rao (KCR) welcomed the PM’s move against black money. His son and IT minister K.T. Rama Rao congratulated PM Modi for the bold strike against black money.