Iron fist and clash over cash - BJP and govt step up offensive, Maya alleges foul play and Mamata calls for Opposition unity

A queue snakes outside an HDFC Bank branch in Calcutta on Thursday as a nationwide exercise to issue new notes began. (Amit Dutta)

Radhika Ramaseshan, TT, New Delhi, Nov. 10: The Centre and the BJP have vowed to step up a multi-pronged drive to flush out black money on a day Mayawati alleged foul play and Mamata Banerjee appealed to all Opposition parties to work together ahead of the winter session beginning next week.

As the income tax department conducted "surveys" in multiple cities on the first day of currency conversion in the country, a senior BJP leader said more search and punitive measures would roll to squeeze tax evaders from "hiding".

The BJP leader warned that not even "the hair" of the offenders would be spared.

Tax surveys - a euphemism for raids - were conducted in Delhi, Mumbai and some other cities. Market places like Karol Bagh, Dariba Kalan and Chandni Chowk in Delhi were among those surveyed amid reports that cash hoarders were deploying dummies to convert the old notes for a price.

In a statement, Prime Minister Narendra Modi said he was "heartened" by the "warmth, enthusiasm and patience" citizens had shown in "coping with this limited inconvenience for a greater good".

The threats and endorsements of civil support were accompanied with an assurance from finance minister Arun Jaitley that small depositors wanting to exchange the old currency would not be "questioned or harassed". Government sources conceded that more steps were needed to "pacify" the informal sector that it was not the Centre's "target".

The flurry of statements came as Mayawati alleged that some industrialists were tipped off before the demonetisation kicked in. Mulayam Singh Yadav echoed her. So did Arvind Kejriwal.

A few hours after Jaitley expressed "deep disappointment" at Mamata's objections, the Bengal chief minister tweeted: "May I appeal to all political parties in the Opposition to work together boldly against the anti-poor govt at the Centre?" 

Referring to the criticism from Mamata, Mayawati and Mulayam, a BJP leader said: "This is music to our ears. Are they saying they are affected by the crackdown on black money? We will take this message to the people."

This morning, Jaitley said it was common in India for almost every household to hold some money for an "exigency or an emergency". "The revenue department is not going to take note of such small deposits or ask questions," he emphasised.

The minister's promise came after the BJP received feedback that the informal sector had panicked over being "tarred" as "tax defaulters" and "hoarders of black money".

A BJP leader from central Uttar Pradesh said: "I was besieged with queries from small traders on whether they were being bracketed with hardcore criminals because they are given to keeping liquid cash for their businesses."

In the coming weeks, the Centre and the BJP are expected to unfurl a publicity blitz centred on a single theme.

BJP sources said the government would take care not to hurt women who keep back moderate amounts for exigencies.

"The demonetisation drive is not aimed at anyone else but anti-national elements and the drug mafia," a source said. 

YOUR MONEY TODAY

What to expect on Friday

• ATMs to operate. Ceiling of Rs 2,000 per account every day till November 18
• Initially, notes of Rs 100 and Rs 50 likely 
• Many banks have waived fees for ATM use
• Flight tickets bought at the airport with old notes will be non-refundable
• Refunds above Rs 10,000 for railway tickets to be sent directly to bank
• Use of old notes at government hospitals, rail and air ticket counters, medicine shops, crematoria and burial grounds, milk booths, petrol pumps, LPG distributors, state and central tax and fee counters to be allowed till Friday night