New Delhi, Nov 17 (IANS): The CPI-M has said that the way the demonetisation move has been conducted has exposed "the utter inefficiency and bungling by the government".

An editorial in the party journal "People's Democracy" also said the withdrawal of 500 and 1000 rupee notes "is unfolding as a war on the common people instead of a war on black money".

The Communist Party of India-Marxist said there were no preparations to ensure adequate supply of the new currency notes once Prime Minister Narendra Modi spiked the high value currency. 

The ATMs were also not calibrated for the new size of the notes, it said.

The editorial alleged that Modi and his government were trying to portray the demonetisation as a big step to unearth black money. 

"By this, they spread the fallacious idea that black money is the hoarding of huge amounts of cash in currency notes. 

"The bulk of the black money is converted into real estate, gold, jewellery and foreign currency kept abroad. Black money exists as a parallel economy. 

"It is generated by economic activities which are either illegal or undertaken in excess of what is legally permitted. The incomes generated from these activities are not declared to evade taxes." 

It accused the Modi government of doing nothing to plug the loopholes which generate the flow of black money in the economy. 

"It has not taken any action against the big business houses which have evaded taxes or defaulted on the loans they have taken to the tune of thousands of crore from the nationalised banks.

"The claim that this is a step to fight corruption is a hollow one. 

"As long as the nexus between big business-ruling politicians and bureaucrats is not broken, corruption will thrive. The new 2000 rupee note will only facilitate bribes being paid. 

"The real intention of the cancellation of the 500 and 1000 rupee notes is something else," the editorial said. 

"It is meant to divert attention from the abject failure of the Modi government to bring back the illegal money stashed abroad and the election promise to create millions of jobs. 

"It is also intended to disarm the opposition parties in the run-up to the assembly elections in Uttar Pradesh and Punjab where their use of monetary resources is sought to be crippled." 

The editorial spoke of largescale disruption to the economy, particularly the informal and the rural economy.

It demanded that till the currency crisis gets over, the use of the 500 and 1,000 rupee notes should be allowed for all transactions till December 30.