Demonetisation done without detailed assessment: Karunanidhi

Chennai: Days after welcoming the Centre's move to demonetise high-value currency notes, DMK chief M Karunanidhi today said it has been done without detailed assessment of its impact and the fears that it can backfire cannot be brushed aside.

He also asked the BJP-led NDA government at the Centre to issue an "appropriate" reply to Delhi Chief Minister Arvind Kejriwal's allegation of 'scam' behind the demonetisation effort.

"While Prime Minister Modi's announcement (on demonetisation) can be welcomed to the extent that it was done with noble intention, the fears that it might backfire without yielding desired results cannot be brushed aside," he said.

In a letter to his partymen, Karunanidhi said, "We have seen what miseries are being faced by commoners and poor over the sudden demonetisation of Rs 500 and Rs 1000 notes, a move made without detailed assessment of its impact."

The DMK chief said on November 9 he had welcomed the demonetisation move but voiced concern about hardships of ordinary people, small traders, autorickshaw drivers as there are no takers for the invalidated Rs 500 notes.

Citing latest reports, he claimed people are affected as movement of notes have been restricted after old Rs 500 and Rs 1000 went defunct and were replaced by Rs 2000 notes.

"People are not getting or able to give change for Rs 2000 note. This only compounded their problems as banks and ATMs are buzzing with crowds," he claimed.

"If the Centre is keen on eradicating black money, it should have consulted economic experts," he said, adding, "How is it fair to punish the poor when a huge amount of black money is stashed abroad."

The priority should be on unearthing black money stashed abroad, Karunanidhi said and claimed that bad debts of big corporates stood at around Rs 11 lakh crore.

On Kejriwal's allegation that BJP had informed its 'friends' beforehand about the demonetisation move, he said, the "Centre has a responsibility to appropriately respond" to the charge.

On Modi's remarks yesterday that crores of people except the corrupt had "slept peacefully" after the announcement of demonetisation of high-value notes, the DMK chief claimed "crores of people have lost their sleep and are anxiously waiting in long queues" to exchange the scrapped banknotes.

Karunanidhi also lashed out at his arch rival Chief Minister J Jayalalithaa for not dwelling on this issue in her statement yesterday.