Lok Sabha Question No. 408 (UNSTARRED), answered on 2017-02-03
Subject: Assessment of Demonetization
Ministry: FINANCE
Asked by: SANJAY SHAMRAO DHOTRE, RAHUL RAMESH SHEWALE, DUSHYANT SINGH, SATYA PAL SINGH, Y. S. AVINASH REDDY, KOTHA PRABHAKAR REDDY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.408

## TO BE ANSWERED ON 3 RD  FEBRUARY 2017 / MAGHA 14, 1938 (SAKA)

## ASSESSMENT OF DEMONETIZATION

408. SHRI SANJAY DHOTRE:

SHRI RAHUL SHEWALE:

SHRI DUSHYANT SINGH:

DR. SATYAPAL SINGH:

SHRI Y.S. AVINASH REDDY:

SHRI PRABHAKAR REDDY KOTHA:

## QUESTION

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has assessed the success/failure of the demonetisation scheme  implemented during the months of November and December, 2016, if so, the details thereof and the outcome thereon;
- (b) the extent to which the Government has achieved the objectives of flushing out black money, counterfeit currency, curb terror and insurgency financing, conversion of cash based economy in to digital economy and higher tax revenue by implementing the said scheme in the country;
- (c) the details of the schemes/ programmes being implemented by the Government to  restore  normalcy  and  provide  relief  to  the  cash  based  industries,  unorganised sector,  farmers,  labourers  and  other  affected/aggrieved  persons  along  with  the outcome thereon, scheme/programmewise; and
- (d) the other steps taken by the Government to weed out black money inside and outside the country ?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI ARJUN RAM MEGHWAL)

( a) and (b) Demonetization seeks to create a new 'normal' wherein the GDP would be bigger, cleaner and real. This exercise is part of the Government's resolve to eliminate corruption, black money, counterfeit currency and terror funding.

Post demonetization, during the period 9 th  November 2016 to 10 th  January 2017, more than 1100 searches and surveys were conducted and more than 5100 notices were issued by the Income Tax Department for verification of for suspicious high value cash deposits. These actions led to seizure of valuables of more than Rs. 610 crore which includes cash of Rs. 513 crore. Seizure of cash in new currency notes was about Rs 110 crore. Further, the undisclosed income detected in these on-giving investigations till 10 th January 2017 was more than Rs. 5400 crore.

(c) A  scheme  of  exemptions,  where  Specified  Bank  Notes  can  be  tendered,  was prepared in consultation with RBI, so as to minimise the inconvenience to the public at the time of the launch of the scheme itself. The details are available on the website of RBI at https://www.rbi.org.in/scripts/bs\_viewcontent.aspx?Id=3270.

(d) Under  direct  tax  laws,  the  actions  against  black  money  includes  collection  of requisite information from various sources, conducting investigations/enquiries in appropriate  cases;  searches,  surveys,  assessment  of  income,  levy  of  penalty  and launching  of  criminal  prosecution  wherever  applicable.  The  Government  has  taken various steps under a multi-pronged strategy in this regard. The recent major initiatives, inter-alia, include (i) constitution of the Special Investigation Team (SIT) on Black Money under Chairmanship and Vice-Chairmanship of two former Judges of Hon'ble Supreme Court; (ii) enactment of a comprehensive law - 'The Black Money (Undisclosed Foreign Income  and  Assets)  and  Imposition  of  Tax  Act,  2015',  Amendment  of  the  Benami Transactions (Prohibition) Act, 1988  etc.

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