CM Pinarayi Vijayan seeks to buy time for Rs 500, Rs 1,000

Thiruvananthapuram: Chief minister Pinarayi Vijayan has urged the Union government to allow transactions of Rs 500 and Rs 1,000 till December 30, the last date for exchanging the banknotes of that denominations. He also announced a relaxation of time till November 30 for paying different fees and taxes. This was applicable even if the deadline for the payment was over. One of the announcements was the relaxation of trader's licence fees to LSGs, a major demand of Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES) which had threatened to down shutters from Tuesday.

Building tax, electricity and water charges, various educational fees including examination fee and fees charged by LSGs can also be paid without penalty till the date. However, the relaxation will not apply to VAT and excise fee. He alleged that the Union government had leaked out information on the demonetization drive to those close to the BJP before the official announcement. "There are reports that the black money lobby got sufficient time to park their money in safe locations and also that BJP had converted their investments ahead of the formal announcement," he said. The allegation that demonetization drive, he said, was due to a flaw by the RBI was serious.

If RBI had accidentally distributed notes without security thread, it was of serious implication. The government should not punish the people for the mistake, he said. "The business of petrol bunks is going up as they were accepting Rs 500 and Rs 1,000 notes. However, there is no shortage of stock. This was also dubious as everybody was aware of major petroleum producer Reliance's closeness to the government," he added. "People who need medicines and treatment were the most affected as the Centre has failed to supply sufficient change." The chief minister who was on his way to Delhi said he would try to meet finance minister Arun Jaitley to convey the state's difficulties.