Demonetisation: How Hasmukh Adhia, the bureaucrat, executed the Top Secret mission

 

To execute the plan of demonetisation Prime Minister Narendra Modi handpicked Hasmukh Adhia, a bureaucrat not too familiar in the financial circle of the country, to lead this top secret mission that banned 86% currency notes overnight. 

 

According to sources, Adhia and five others involved were sworn to utmost secrecy who worked in two rooms at PM Narendra Modi's 7 Race Course Road residence in Delhi to plot this scheme that took the whole country by surprise. 

 

Apart from this, there was a team of young researchers who provided the necessary support to bring about one of the boldest financial moves in the recent history. 

 

The utmost secrecy was much required to ensure that the illicit wealth owners, black money hoarders and others who were the target of the demonetisation could not convert their cash holdings into gold, real estate property, and other assets to hide their possessions. 

 

58-year-old, Hasmukh Adhia, is a top level finance ministry official who monitored the campaign along with his team from the PM's residence in Delhi. Earlier, between 2003 to 2006, he served as principal secretary of then Gujarat Chief Minister, Narendra Modi. 

 

According to reports, it is then that the current PM and Adhia, who introduced yoga to Modi, established a trust relationship. 

 

In September 2015, Adhia was appointed as revenue secretary working directly under Finance Minister Arun Jaitley. However, during this time Adhia was directly in touch with PM Modi with whom he conversed in native Gujarati language. 

 

As per a close aide of PM, Narendra Modi for over a year commissioned various research reports from finance ministry officials, the central bank, and experts on how to fight and recover black money menace in India. 

 

Interestingly, PM Modi demanded different research on different aspects of currency, such as demonetisation, currency printing, the deposit of money, distribution of cash so that no one can connect the dots to predict what's coming. 

 

Under the supervision of Adhia, a research team was assembled who worked on these findings, in theory, to figure out how the demonetisation can and will be worked out. The young team had data and financial analyst, some also worked on PM's social media accounts, and also on the app that Modi used to gather public feedback. 

 

However, despite the secrecy and all the behind closed door activity, the information made its way to the public. State Bank of India analysts in April predicted the possibility of demonetisation, RBI in May also confirmed the preparations for printing ₹2000 notes, and in October, media also started covering news related to the same. 

 

While talking to Reuters, a close source under the condition of anonymity, confirmed that demonetisation was to be announced around November 18, but since signs indicated that the news already got leaked hence the announcement came early. 

 

Many within the finance ministry feel that the plan was flawed since adequate measures were not adopted for printing and disbursing new currency notes. 

 

Demonetisation announced on November 8, 2016, is a radical economic move that cost lives of many, created economic disruption and it has been widely criticised due to the poor implementation. However, many economists and different industry experts have welcomed this move and have said that in the long run, it will prove to be beneficial for the nation's economy.