Use of black money reason for inflation, price rise: Swamy

Last Updated: Sunday, April 24, 2011 - 20:57

Patna: Janata Party president Subramanian
Swamy on Sunday claimed that black money was responsible for
inflation and price rise in the country as black marketeers
were using the ill-got wealth to hoard essential commodities.



"Black money is being used in a big way to purchase
consumer goods, including food grains, for hoarding to cause
artificial shortage, jacking up prices and then selling them
for huge profit," he said in his lecture on `Ramrajya Kal Aur
Aj` here.
Swamy claimed those hoarding black money had invested
upto 70 per cent of their capital in consumer goods and were
using the profits to buy food materials for black marketing.



It had led to the unusually high inflation rate of
about 16 per cent which was negating India`s 9 per cent
growth, he said.



Swamy claimed that black money was also being invested
in the equity market in the country by bringing the funds
through the Mauritius route. "These investors were causing
prices of various companies to swing to rake in profits."
The Janata Party president touched upon the 2G scam to
substantiate his allegation and said DB Realty`s promoter
Shahid Balwa, now in jail, was a "classic example" of the use
of black money in the economy.



Balwa, alleged to have links with Dawood Ibrahim,
accumulated the huge ill-got wealth and invested it in the
market, he said.



Swamy also hit out at Tamil Nadu Chief Minister M
Karunanidhi for his alleged description of Lord Rama as a
mythical figure during the debate on Setu Samudram project.



The claim about the bridge between India and Sri Lanka
had been proved by Geological Survey of India and NASA, he
said, adding that he had filed a petition in Supreme Court
against attempts to destroy the `Ram Setu` for the shipping
canal between Park Bay and Gulf of Mannar.



PTI



First Published: Sunday, April 24, 2011 - 20:57
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