The outlawed ultra group, CPI(Maoist), whose money worth hundreds of crores has become “trash” following the Centre’s decision to demonetise Rs 500 and Rs 1,000 currency notes, may step up its activities in order to “compensate” for the losses it has suffered. However, the security forces are keeping a close watch on the movements of the Maoists.
Official sources say that demonetisation has crippled the Maoists, so much so that now there is fear that they would intensify activities such as extortion and violence to make up for their losses. This is worrying the security agencies, especially since Maoist related incidents witnessed a remarkable decline in the last couple of years, following the government’s strategy of offensive coupled with development work in areas of rebel-influence.
According to estimates by the Institute for Defence Studies and Analyses (IDSA), which was quoted by the Minister of State for Home Affairs Haribhai Parathibhai Chaudhary in the Lok Sabha last year, “the CPI(Maoist) party has been collecting not less than Rs 140 crore annually from a variety of sources”.
As per the government’s reply, “The main source of funds for the extremist forces includes extortion from tendu patta contractors, infrastructure/development work contractors, businessmen, corporate houses. In addition, they also rob banks and public/private property to augment their finances. They also extort considerable ‘levy’ from various illegal mining mafia groups in the Naxal-affected states,”
However, a senior IPS officer involved in anti-Maoist operations in a Maosit-affected state said that the actual figure is much more than Rs 140 crore. In fact, this is the minimum amount that the ultras have been accumulating over the years. So it can be assumed that they have lost hundreds of crores, if not more, that they accumulated over the years.
Dr P.V. Ramanna, a research fellow with IDSA, said: “The CPI(Maoist) had stashed several hundred crores (of rupees), which are now trash. Therefore, the Maoists will try to exchange these currencies through activists and suppliers. As a consequence, it is possible that, in the months ahead, extortion attempts will increase ‘drastically’.”
The IPS officer estimates that the Maoists have lost 90% of their funds following demonetisation. “They are completely crippled. They are in a big mess. They do not have the money to pay their cadre. They are finding it difficult to run their organisation. In this situation, they may try to intensify their activities. But we are keeping a close watch over the movements and we will make sure that this does not happen,” he said.
The IDSA study says, “There is no evidence yet to suggest that the Maoists are investing money in businesses or in the stock market. Surely, considerable amounts are being spent on acquiring weapons, ammunition and explosives from the grey arms market, while some money is also being spent for the daily needs of the armed cadre and running the war machinery as well as expanding it. A small portion of the finances is being spent on propaganda and development work in their base areas where they are running a parallel government.”