The Hon’be Supreme Court has asked the Government the Rationale behind the demonetization exercise or Note Bandi exercise. It categorically asked the Government : Was the decision of demonetization taken in haste or with inadequate contemplation?…In addition, how much time will the Government take to normalize the negative impact of demonetization exercise and lessen the inconvenience of the people.
If the questions are closely looked at, then one can assume what Supreme Court is asking the Government?
The Supreme Court may be asking the Government: Is the rationale behind the decision the same as it purports to be? … That’s the decision aimed at stopping Black money, terror funding and Fake currency.
This is an essential question as the Court also wants to think on the lines of Loan
financing by the Banks (aka Government). Are the banks all too wiling to oblige a loan and don’t call call the money a loan. Or give very big bad loans. This usually happens with very big loans and when they becoming non-performing look for ways to make up for the potential losses. As what happens here is that in most cases very little or nothing is set aside for potential losses. To summarize, in addition to accounting sleight of hand, which is essentially showing neat balance-sheets by masquerading bad assets as good or increase overall bank trove or setting aside equivalent asset before writing off bad asset.
[NOTE: Very Big Lending here means loans which go into thousands of crores]