Telangana is likely to become the first state in the country to demand the central government to compensate the losses of the states due to the ongoing demonetization drive. Chief Minister K Chandrasekhara Rao is demanding that the Center should distribute the cash accrued to it through demonetisation among all states in the ratio of at least 42 percent.
KCR is estimating that 5 lakh crore in black money will not be deposited with banks fearing penalties and cases. The state government is excepting that RBI will print new currency notes for the amount not deposited with banks and transfer the same to the account of the Central government.
And that amount will be shared with all the states to cover the losses. KCR is planning to lead the delegation of Chief Ministers if the Center will not do that. But then economic experts that any such move will give an impression that demonetization will be viewed as being done with other motives, rather than fighting black money.
