The Delhi-based lobbyist told me a story he had heard from a minister. On 8 November 2016, as Modi prepared to announce his surprise decision to annul all high-denomination bank notes, he gathered his top ministers. After handing each a piece of blank paper, he asked for their opinions on whether he should withdraw all Rs 1,000 notes, all Rs 500 notes, or both. “Jaitley, being the finance minister, said, ‘We can demonetise 1,000-rupee notes but not 500-rupee notes. It will be a big jolt.’ To which Modi, not in jest but sarcasm, said, ‘Are you saying this because lawyers mostly store their money in 500s?’ Rajnath said, ‘Pehle hi kar dena chahiye tha, I am fully supportive of it.’” Venkaiah Naidu, also a cabinet minister, supported the move as well. Then it was Gadkari’s turn. “He said, ‘This problem of black money should be finished once and for all. Demonetise everything from 1,000 to 100. Nobody keeps bundles of 50-rupee notes.’ Modi was taken aback.” When a colleague later asked Gadkari about this, “he said, ‘He had already made up his mind, he was just doing a paper exercise to corner us. So I tried to go one up on him.’
In short it was the Prime ministers personal pet project, done to drain out the cache of money held by opposition parties.
The Delhi-based lobbyist told me a story he had heard from a minister. On 8 November 2016, as Modi prepared to announce his surprise decision to annul all high-denomination bank notes, he gathered his top ministers. After handing each a piece of blank paper, he asked for their opinions on whether he should withdraw all Rs 1,000 notes, all Rs 500 notes, or both. “Jaitley, being the finance minister, said, ‘We can demonetise 1,000-rupee notes but not 500-rupee notes. It will be a big jolt.’ To which Modi, not in jest but sarcasm, said, ‘Are you saying this because lawyers mostly store their money in 500s?’ Rajnath said, ‘Pehle hi kar dena chahiye tha, I am fully supportive of it.’” Venkaiah Naidu, also a cabinet minister, supported the move as well. Then it was Gadkari’s turn. “He said, ‘This problem of black money should be finished once and for all. Demonetise everything from 1,000 to 100. Nobody keeps bundles of 50-rupee notes.’ Modi was taken aback.” When a colleague later asked Gadkari about this, “he said, ‘He had already made up his mind, he was just doing a paper exercise to corner us. So I tried to go one up on him.’
In short it was the Prime ministers personal pet project, done to drain out the cache of money held by opposition parties.
Gone horribly wrong.