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PM Modi went for demonetisation first, RBI’s formal approval came five weeks later

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Demonetisation queue

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On a day when ‘#DemonetisationYaadRakhna’ (always remember demonetisation) was a top tending hashtag on Twitter to remind people of the hardships brought about by Prime Minister Narendra Modi’s sudden and drastic step, news reports based on reply to a RTI query said he had gone ahead and done it even before formal approval by the RBI central board.

The demonetisation of Rs 500 and Rs 1,000 notes, which saw 86 per cent of high-value currency going out of circulation, was announced by PM Narendra Modi on November 8, 2016.

Urjit Patel-led RBI board had met just two-and-a-half hours before Modi’s announcement, said media reports. However, the minutes of the meeting were signed by the RBI governor five weeks later on December 15, 2016.

According to the minutes of the 561st meeting of the RBI’s Central Board, which was convened hurriedly in New Delhi at 5.30 pm on November 6, the central bank’s directors described the move as “commendable” but also warned that demonetisation “will have a short-term negative effect on the GDP for the current year”, the Indian Express had reported last year.

The RBI board, which included the present Governor Shaktikanta Das as a director, had also observed that demonetisation would not have any material impact on tackling the black money menace or counterfeit currency — the prime objectives cited by the PM while announcing the move.

“It is a commendable measure but will have short-term negative effect on GDP for the current year. Most of the black money is held not in the form of cash but in the form of assets such as gold or real estate and that this move would not have a material impact on those assets,” as per the minutes posted by RTI activist Venkatesh Nayak on the website of Commonwealth Human Rights Initiative.

In another reply, the RBI revealed it had no data on the old Rs 500 and Rs 1,000 notes used to pay for utility bills such as fuel at petrol pumps — payments that are anonymous and are believed to have formed a good part of the demonetised currency that returned to the banking system.

The RBI, in its annual report for 2017-18 on August 29, 2018, said that nearly all the money that was withdrawn returned to the banking system. The RBI said it had received Rs 15.31 lakh crore of Rs 500 and Rs 1,000 notes, or 99.3 per cent of the Rs 15.417 lakh crore worth of notes which were in circulation as on November 8, 2016.

This meant that just Rs 10,720 crore of Rs 500 and Rs 1,000 notes failed to come back to the RBI, as against government expectations that well over Rs 3 lakh crore of black money would not return to the banking system.

The sudden withdrawal of notes led to a liquidity shortage and GDP growth declining close to 1.5 per cent.

Senior Congress leader Jairam Ramesh said that the RBI board had backed the move as it was “pressured” by the government. “Demonetisation, issued through a Tughlaqi farmaan (autocratic and arbitrary decision), had destroyed the Indian economy,” PTI quoted Ramesh as saying.

Ramesh said if Congress came to power all abnormal flows from legitimate tax havens and abnormal deposits in cooperative banks would be probed. “The first thing that we will do when we come to power is restore the autonomy and independence of the RBI,” he said.[/vc_column_text][/vc_column][/vc_row]

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Farmers leave protest site on Noida Expressway, police remove barricades

The farmers temporarily shifted their protest to Ambedkar Park but threatened to resume their march towards the national capital, if their demands were not met on time.

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Farmers leave protest site on Noida Expressway, police remove barricades

Hundreds of farmers, who gathered for Delhi Chalo march over several demands agreed to vacate the protest site on Monday evening, allowing traffic movements along the Noida-Greater Noida expressway.

Reportedly, after a meeting with the Noida authorities, Bhartiya Kisan Parishad leader Sukhbir Khalifa, who is spearheading the protests, decided to give the Centre a week’s time to fulfill the farmers’ various demands, including a legislation on Minimum Support Prices (MSPs). The protestors temporarily shifted their protest to Ambedkar Park but threatened to resume their march towards the national capital, if their demands were not met on time.

Earlier on Monday, massive traffic snarls caused inconvenience to commuters crossing the Delhi-Noida border, as police set up multiple barricades to avert the farmers from Uttar Pradesh from marching towards the Parliament complex. 

After the farmers’ gathered near the Mahamaya flyover in Noida on Monday afternoon, some of them broke a few barricades and attempted to continue with their march. The protest is being supported by the Kisan Mazdoor Morcha (KMM), the Samyukt Kisan Morcha (SKM) and other farmer organisations.

Shivhari Meena, Joint CP Law and Order Noida, Shivhari Meena, told a news agency that the farmers had announced the Delhi Challo march today and they were continuously holding talks with them. She added that the farmers have told their demands to the officials and officials have given them an assurance. 

Additional Commissioner of Police, Eastern Range of Delhi Police,Sagar Singh Kalsi, had told a news agency that owing to farmers’ protest, they have made strong and robust arrangements at all major, minor borders in East Delhi.

Beside a legal guarantee on the MSP, the protesters are demanding farm loan waiver, pension for farmers and farm labourers, no hike in the electricity tariff, withdrawal of police cases and justice for the victims of the 2021 Lakhimpur Kheri violence, reinstatement of the Land Acquisition Act, 2013 and compensation to the families of the farmers who died during a previous agitation in 2020-21.

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Amid Chief Minister suspense, BJP appoints Finance Minister Nirmala Sitharaman, former Gujarat CM Vijay Rupani as central observers for Maharashtra

The oath-taking ceremony for the new government is set for the evening of December 5 at Azad Maidan in Mumbai, with Prime Minister Modi in attendance.

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Amid Chief Minister suspense, BJP appoints Finance Minister Nirmala Sitharaman, former Gujarat CM Vijay Rupani as central observers for Maharashtra

The BJP on Monday appointed Union Finance Minister Nirmala Sitharaman and former Gujarat Chief Minister Vijay Rupani as central observers for its legislature meeting in Maharashtra to select its leader. This comes amid ongoing suspense over Maharashtra’s next Chief Minister.

More than a week after the BJP-led NDA, also called Mahayuti, secured a landslide win in the Maharashtra assembly elections, the new government is yet to be sworn in. BJP leader Devendra Fadnavis is expected to be elected as the legislature party leader in a meeting scheduled for December 3. Reportedly, all BJP MLAs have been directed to be present in Mumbai for the event.

In the Assembly Elections, the Mahayuti alliance secured 230 out of 288 assembly seats, with the BJP winning 132 seats, Eknath Shinde’s Shiv Sena claiming 57, and the Ajit Pawar-led NCP taking 41 seats. The oath-taking ceremony for the new government is set for the evening of December 5 at Azad Maidan in Mumbai, with Prime Minister Modi in attendance.

Notably, the BJP is proceeding cautiously as the aspirations of its allies, especially the Shiv Sena, have risen following the massive election victory. Despite Eknath Shinde’s push for unity within the Mahayuti, some allied leaders have expressed differing views.

Former Union minister and BJP leader Raosaheb Danve said that if the undivided Shiv Sena and BJP had contested the elections together, they would have secured more seats. Shiv Sena MLA Gulabrao Patil also claimed that the Eknath Shinde-led party would have won 90-100 seats had Ajit Pawar’s NCP not been part of the alliance, provoking a strong response from the Ajit Pawar-led party.

The BJP legislature party meeting to elect the leader, who will be the party’s chief ministerial pick, is yet to be held even though Shiv Sena and NCP have elected Eknath Shinde and Ajit Pawar as their legislature party leaders, respectively. Meanwhile, a senior Mahayuti leader said the allies will jointly decide whether only the Chief Minister and deputy CMs will take oath on December 5 or ministers will also be sworn in.

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Eknath Shinde cancels meetings again, Ajit Pawar flies to Delhi to meet BJP leaders

The Shiv Sena leader did not return to his official residence, Varsha, and had been staying in his native village in Satara over the weekend.

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Eknath Shinde cancels meetings again, Ajit Pawar flies to Delhi to meet BJP leaders

The conundrum over finalising the next Maharashtra Chief Minister continues after 10 days as caretaker Chief Minister Eknath Shinde cancelled his meetings today as he was unwell. Earlier on November 29, the Shiv Sena leader cancelled a crucial meeting of Mahayuti, and unexpectedly left for his village in Satara district. Meanwhile, NCP leader Ajit Pawar headed to Delhi to meet with top BJP leadership over government formation.

Reportedly, Eknath Shinde, who was supposed to attend a meeting of Mahayuti leaders to finalise the portfolio allocations, is down with a throat infection and fever. The Shiv Sena leader did not return to his official residence, Varsha, and had been staying in his native village in Satara over the weekend. The meeting is scheduled to be held on Tuesday.

The Mahayuti alliance, comprising the BJP, Shiv Sena and Ajit Pawar-led NCP, swept the November 20 Maharashtra Assembly election, winning 230 of 288 seats, the results of which were declared on November 23. The BJP secured a massive 132 seats, while Shinde Sena and NCP’s Ajit Pawar faction got 57 and 41 seats, respectively. Reportedly, Ajit Pawar may discuss the Maharashtra government formation and portfolio allocations with the top BJP leadership in Delhi today.

In another major development, Eknath Shinde’s son and Shiv Sena MP Shrikant Shinde rejected reports of a demand for the Deputy Chief Minister post for him. Shrikant Shinde called the reports baseless rumours and said he was not in any race for any ministerial post in Maharashtra.

His clarification came after speculation arose that he would be considered for the Deputy Chief Minister’s post. Taking to X, Shrikant Shinde wrote that the swearing-in ceremony of the coalition government has been a bit delayed and currently there is a lot of discussion and rumours. He added that caretaker Chief Minister Eknath Shinde went to the village for two days and rested due to ill health, and so the rumours flourished. 

He continued that the news that he will be the Deputy Chief Minister has no truth in it and is baseless. The Shiv Sena MP mentioned that he got the chance to become a Cabinet minister after the NDA’s victory in the Lok Sabha elections and asserted he had no desire for a position in power.

He stated that after the Lok Sabha elections, he had a chance to become a minister in the central government. However, he thought about working for the party and refused the ministerial post even then. He added that he is not in the race for any ministerial position in the state.

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