The Congress on Wednesday mounted a blitzkrieg on the decision to demonetise ₹500 and ₹1,000 currency notes, with party Vice-President Rahul Gandhi accusing the PM of throwing the country into “chaos” and former Finance Minister P Chidambaram predicting that the immediate fallout will be a contraction of the economy.

The Congress Vice-President on Twitter said, “Once again Mr Modi shows how little he cares about ordinary people of this country – farmers, small shopkeepers, housewives – all thrown into utter chaos while real culprits sit tight on their black money stashed away abroad or in bullion/real estate. Well done Mr Modi.”

Chidambaram, at the All India Congress Committee (AICC) office, gave a more exhaustive critique, raising questions ranging from whether the economic gains justify the inconvenience caused and how demonetisation of the notes prevents generation of black money when a higher denomination note of ₹2,000 is being introduced. The former Finance Minister also cited past instances of such a move to contend that served very little purpose.

“In 1978, the Janata government demonetised high denomination notes. By all accounts, that action failed to achieve its objectives. High denomination notes were re-introduced shortly afterwards and the volume of unaccounted wealth and income admittedly increased,” said Chidambaram.

He said the introduction of a new series of notes is estimated to cost between ₹15,000-20,000 crore, and the economic gains of demonetisation should be at least equal to that amount. Also, accounting for inflation, ₹500 notes can no longer be considered a high denomination note and it is used widely.

He also questioned the logic behind introducing ₹2,000 notes when ₹1,000 and ₹500 notes are being scrapped.

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