All the chairpersons and MDs of India’s top banks were meeting at Reserve Bank of
India’s headquarters on the 15th floor of the Mint Street office in a
special session that started at 7 pm. In Delhi, on the other hand, the
top Cabinet ministers of the Modi government were meeting over an agenda
regarding MoUs between India and Japan.
None of the top bank chiefs or the ministers of the
government were aware of what was to happen.
The Cabinet meeting ended at 7.30 pm and the PM went to
meet the President to inform him about the plan. The ministers were
instructed to remain in the meeting hall. The bankers on the other hand,
were discussing the situation from the Non-Performing Assets (NPAs) in the economy.
Just before 8 PM, the TV sets were switched on to listen to
the PM, with the understanding that the meeting would continue after the PM
address. Of course, the announcement from the PM was going to be
earth-shattering for most bankers who had to rush back to their offices to
handle the situation arising from the ban of Rs 500 and Rs 1000!
The story of demonitization starts way back in at least 2010
with a company named De La Rue and its role in fake currency in
India. Sometime during 2009-10, the CBI had raided around 70-odd Indian
bank branches along the India-Nepal border and found counterfeit currency with
them. That sent shock signals all over the intelligence community.
Upon investigation, however, the intelligence officials found something even
more scary! The branches had received the currency not from some
smugglers, but RBI itself! RBI was sending counterfeit notes to
the bank branches around the country!
When the CBI raided the RBI, it found the same counterfeit
currency in the RBI vaults in Rs 500 and Rs 1000 notes. The Central Bank
of the country had been compromised beyond anyone’s imagination! The
counterfeit and fake currency which Pakistan was pushing into India was being
collected and distributed by none other than the Reserve Bank of India!
Almost like real…
In a little known case involving counterfeit currency caught
in UP and Bihar, the defending lawyer rather nonchalantly argued that what was
the proof that it was fake? When the currency was sent to the Indian
government labs, they indeed confirmed that the currency nabbed from the ISI
agents was actually real! When sent to foreign labs, it was found out
that the currency was so close to real that it was extremely difficult to prove
it being counterfeit. In fact, the small difference that helped them
prove it was not real was probably inserted on purpose! Such was
the confidence and arrogance of the counterfeiters!
It was found by the CBI on further investigation that the
mischief was happening at the end of De La Rue, a company from whom RBI imports
95% of its currency paper. In fact, RBI’s buy accounts for over 30% of De
La Rue’s profits. At that time, De La Rue was blacklisted by the
government and the company came to the point of bankruptcy with 2000 metric
tonnes of paper lying unused! At that time, the De La Rue CEO James
Hussey – godson of Queen Mother herself – resigned over what was called “paper
quality issues”, which sounded fishy to begin with!
“We
don’t know whether the paper disintegrates under a drop of rain or whether
there is just a fly in a roll of paper somewhere,” said one source. “The
statement is so full of holes that is has created further suspicion.”
De
La Rue said the irregularities were of a “serious nature” but that it was
“confident that neither the physical security nor the security features
incorporated in the paper have been compromised for any customer and that the
irregularities referred to relate only to testing of paper specifications at
the relevant facility”.
Meanwhile, in 2010 another serious security lapse was
exposed!
Outsourcing of Currency Printing by
Government: Height of Betrayal
The government, unbeknownst to anyone, had outsourced the
printing of currency notes to US, UK and Germany – amounting to Rs 1 lakh
crores!! The entire economic sovereignty of India was at stake!
The
RBI had in 1997-98 outsourced printing of 2,000 million pieces of Rs 100 notes
and 1,600 million pieces of Rs 500 notes to US, UK and Germany amounting to Rs
1 lakh crore. The committee, after questioning central bank officials, said the
reasons provided were far from convincing.
RBI
had said the soilage factor and bad condition of notes resulted in the
decision. The panel observed that RBI’s system of assessment with respect to
demands and supply of bank notes in the country was off the mark resulting in a
gap.
The three companies to whom the Indian currency was
outsourced were American Banknote Company (USA), Thomas De La Rue (UK) and
Giesecke and Devrient Consortium (Germany).
On November 3, 2011 a complaint was received by the Central
Vigilance Commission (CVC) signed by “unnamed officers of the Ministry of
Finance” – who said that the security was compromised not just by De La Reu,
but also other companies – French firm Arjo Wiggins, Crane AB of USA and
Louisenthal, Germany!
What is most disturbing is that the information of
compromise in security features of the paper for currency had at different
times been withheld from the Home and Finance Ministry of India.
Following
the quality breach by De La Rue, in September-October 2010, the government
tested samples of currency paper supplied by other companies as well. On
November 3, 2010, BRBNMPL ( Bharatiya Reserve Bank Note Mudran Private Ltd) —
which signs currency note contracts on behalf of the RBI — wrote to the
Directorate of Currency, Ministry of Finance, that currency paper supplied by
Crane AB of USA and Louisenthal, Germany, had failed tests in Hoshangabad as
well but cleared re-tests at the suppliers’ foreign laboratories.
The
complaint notes, “BRBNMPL in their letter of 3rd November 2010, concealed the
failure of paper supplied by Arjo Wiggins ( a French company) from the Ministry
of Finance as detected in the tests conducted on Arjo Wiggins paper at Hoshangabad”.
In 2015, after Modi sought help in investigations in the
fake currency notes from the US, it came out that the German company
Louisenthal was also selling raw notes to Pakistan, resulting in a ban on the
company.
The
Home Ministry has barred a German company, Louisenthal, from selling bank note
paper to the Reserve Bank of India (RBI) after it discovered that the firm was
also selling raw notes to Pakistan, according to a senior official.
“We
are only keeping our interests in mind,” the official told The Indian Express.
“We have proof that high-quality fake Indian currency notes are being produced
in Pakistan and pushed into India through Bangladesh, Nepal, Sri Lanka and
Vietnam. The availability of a common supplier could be one of the reasons behind
such high-quality fake notes.”
This is how the Indian currency was compromised at every
point – RBI, Home Ministry, Finance ministry, and the Indian and Foreign
printing presses. Worse of all, our entire currency production was
outsourced to unscrupulous forces who were merrily sharing the real stuff with
Pakistan who was happily and arrogantly snubbing us and creating a havoc with
our economy!
How Pakistan was Check-mated?
The free flow of Indian currency paper to Pakistan
encouraged its government to set up 5 printing presses to print fake
currency notes.these were smuggled to Nepal and Bangladesh (often on PIA
flights). The currency entered India via UP and Bihar (Nepal border), via
Malda in West Bengal (from Bangladesh), via Rajasthan border, Punjab border and
via Chennai and Mangalore through the Indian expats from Gulf.
Pakistan used to pump in money to fund student bodies (like
in JNU and Jadhavpur), media and journalists and also political parties to
completely influence the elections.
The “Imminent” Assault
Given the aggression with which the Modi government has
acted against Pakistan and given its options against Indian – specifically the
Surgical Strikes and the heavy bombardment such that Pakistan had to beg India to
stop beating them up! – Pakistan wanted another front for a major strike!
As per General GD Bakshi, a prominent security and defense
analyst, India has some Rs 16 trillion* of Rs 500 and Rs 1000 in circulation
(which is 96% of the entire money supply). Pakistan was already printing
Rs 15 trillion (Rs 500 / Rs 1000) with a view to push them in India to
completely “unhinge” the Indian economy in what Gen Bakshi calls an “Economic
Pearl Harbour”!
This would have led to unprecedented terror strikes and
runaway inflation and steep price rise, which would have spelt doom for India
in many ways.
On the night of Nov 8th, when the Cabinet Ministers and the
top bankers were caught unawares by the announcement of the Indian PM Modi on
the ban on the notes – an act in extreme secrecy; all efforts to save Pakistan
and its network were thwarted.
Pakistan was checkmated.
All those whom you see now coming together to fight
demonetization know exactly what was being planned and what led to all
this. If they still choose to fight this act by the Modi government, you
should know exactly from which team they are fighting this existential war of
India’s future! And, with the context of how RBI, Home and Finance
Ministry, and banks were compromised over the years, one can very well
understand the reason for extreme secrecy and quick action – which the critics
ironically call “knee jerk” and “unprepared government plan”.
==================================
Important information related to the
FICN (Fake Indian Currency Notes) issue
Let us also look at other information which is important to
fully understand the situation around the currency notes circulation by
Pakistan.
Changes in De La Rue and Printing notes in India
There
are only so many companies in the world with the expertise to produce the
currency paper. De La Rue, since its rather ignominious episode with the
Indian currency and being close to bankruptcy has undertaken a complete rehaul
of the company. And with a new management, it has and is helping India to
create production plants in India.
The
printing facility in Mysuru (of Bhartiya Reserve Bank Note Mudran Private Ltd
(BRBNMPL) was set up with De La Rue Giori (now KBA Giori, Switzerland).
Now another facility is coming up at Salboni with help from Komori Corporation,
Japan. It is important to know that indigenous note mills in India will
be able to take care of 70% of the domestic currency needs.
This
is where the Rs 2000 notes will also be printed. In an attempt to
participate in “Make in India”, the erstwhile De La Rue is working with the
Indian government to establish the mills here in India.
So De
La Rue is keen to contribute to the PM’s initiative, by bringing investment,
expertise, knowledge and best practice to currency production in India. Given
the opportunity to partner with India, we hope to create a regional hub for
research and development, as well as local manufacturing facilities for the supply
of security features for the next generation of India’s banknotes, passports
and identity documents.
We
need to make sure that ultimately India is able to work through the technology
with more reliable partners and eventually on our own to have our important
paper needs taken care of – currency, Aadhar and passport.
November 27, 2016
http://drishtikone.com/demonetization-detailed-drama-modi-checkmated-pakistans-devastating-assault/
No comments:
Post a Comment