Prime Minister Narendra Modi has banned Rs 500 and Rs 1000 currency notes, putting the fear of god on tax evaders. Demonetization is complex to administer and may even needlessly push inspector raj. Sure, in January 1978, the Indian government had demonetised 1,000, Rs 5,000 and Rs 10,000 notes to counter black money in the economy. But putting the fear of god into tax evaders did not curb the generation of black money. The practice of political parties mopping up huge amount of poll funds through unaccounted contributions pushes businesses to generate black money.

Source: Economic Times November 08, 2016 19:57 UTC