Cash flows in Punjab, despite of demonetization

It has been witnessed that demonetization has been unsuccessful to control flow of cash as in assembly polls, a massive jump is seen across Goa, Uttarakhand, UP and Punjab.

As compared to the assembly polls of 2012, this time as UP has four phases, on February 18, the cash seizures stood at Rs 109.79 crore in the state which is three times than earlier.

As in Punjab, it was three cornered fight amid Aam Aadmi Party, Congress and SAD-BJP in which the cash seizure witnessed with five times more amount. The amount was calculated as liquor of Rs 12.43 lakh litres, cash in Rs 58.02 crore and drugs of Rs 18.26 crore which was almost 2, 598 kg. it all was seized while the poll of February 4.

Similarly the data came up in Uttarakhand, Goa where drugs, cash and liquor of crores has been seized while elections.

“The massive and un precedented cash seizures from the poll-bound states prove that demonetisation has had no effect on use of money power in elections,“ said a senior EC official.

“Even though EC, concerned that the RBI limit on cash withdrawals from banks and ATMs would handicap the candidates in spending up to the prescribed poll expenditure limit, pushed the RBI to relax these restrictions, the high cash seizures show that the withdrawal caps were hardly a deterrent for candidates or political parties.“

The places where the amount was not explained well, it was handed over to the I-T authorities and for this, this time the tax department is keeping up with more issues than early years.

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