Published On : Wed, Nov 9th, 2016

‘Demonetization Scheme to have Long Term Positive Impact on Ecomony’: ICAI Nagpur

Prime Minsiter has formulated Demonetization Scheme for curbing corruption and black money menace that is encouraging cross border terrorism. The PM on 8th November 2016 in his address to the nation announced the Demonetization Scheme wherein Indian Rupees Currency Notes of Rs. 500/- & 1000/- have ceased to be a valid tender with immediate effect from midnight of 8th November 2016. The unprecedented move by the government is being talked about by persons across the society and has also raised certain doubts and required clarifications on the same.

The Nagpur Branch of WIRC of ICAI organised an immediate reaction and Panel discussion for the Chartered Accountants and general public of the society. Eminent Chartered Accountants and economists were invited to express their views on the banning of Rs. 500/- and 1000/- noted and the future impact in the economy.

Senior Chartered Accountant, CA T.S. Rawal expressed his happiness to see the invalidation of such notes of Rs. 500/- & 1000/- with immediate effect. He opined that the biggest loser in such activity will be the Hawal Dealers, Fake Currncy carriers and terrorist groups who have been infusing fake currency bills at regular intervals in the economy. He highlighted that the general public should not panic and keep calm since the government is having sufficient machinery to undertake this transition. CA. Rawal said that the advantages of this move will be felt over long term and economy as whole is expected to move ahead.

CA. Kailash Jogani, in his deliberations termed this move of the Government a Bold and Historical one. He said that this move will have a major impact on real estate sector and fluctuations might happen in the prices of real estate all over the country. He was happy about the fact that tremendous increase in the flow of money would happen in the economy. He however expressed his concerns about the inflationary trends in near future.

CA. Atul Deshmukh while discussing has expressed that this is a predetermined move by the government and such steps would result in curbing the menace of black money. He shared that more such surgical steps could be undertaken by the government in near future. He explained in detail the logic behind the proposed demonetization scheme.

CA. Julfesh Shah, emphazised on necessity of such schemes and he also briefed the participants regarding various economic situations that may arise while the process of exchange of currency notes takes place till 31st December 2016. He also shared his views regarding corrections which might take place in share markets as well as the Real Estate sector over the time.

CA. Abhijeet Kelkar, RCM opined that demonetization has brought various opportunities and challenges for chartered accountants. He expressed that chartered accountants will play an important role in consulting the clients for understanding the terms and precautions to be undertaken for smooth exchange of old currency notes. He also explained the need of rigorous and detailed audit to be undertaken while checking transactions related to flow of cash in this particular period.
Earlier Chairman CA. Swapnil Ghate in his welcome speech praised the government for such an unprecedented move and reiterated that Chartered Accountants will be available to guide the general public for understanding the provision of the economy at all times. He however wished that the government should have been flexible for limited period so that harassment to general public during this period of transition is minimum.

CA. Suren Duragkar, Treasurer coordinated the proceedings while CA. Umang Agrawal, Secretary proposed formal vote of thanks thanking the panelist for expressing their views in a very open atmosphere.

Prominently present on the occasion were CA. Sandeep Jotwani, Vice Chairman, CA. Kirit Kalyani, WICASA Chairman, CA. Saket Bagdia, CA. Sanjay Agrawal & CA. Jiten Saglani- Executive Committee Member, CA. Mahendra Kamat, CA Pramod Jawandhiya, CA. Yash Verma, CA. D G Sharma, CA. Anand Apte, CA. Jayanti Jawarani, CA. R S Temurnikar & over 175 Chartered Accountants members..