Former Prime Minister Manmohan Singh on Thursday spearheaded a blistering attack by the Opposition in Parliament against the government’s demonetisation move, and termed it an “organised loot and legalised plunder of the common people.”

Singh, who was speaking for the first time on the issue in the Rajya Sabha, where Prime Minister Narendra Modi was also present, said the government’s decision to withdraw high-value notes would cause GDP to decline by about two percentage points.

Countering Singh’s comments with matching feistiness, Finance Minster Arun Jaitley told newspersons later that those who dismissed the issues of black money and scams as blunder during their regime were now leading the crusade against black money. “The maximum black money was generated during 2004-2014,” he said.

The Finance Minister further said that in the long run, demonetisation would have a positive impact on GDP. “The medium-term and long-term impact is going to be positive.” Earlier, Manmohan Singh said the demonetisation move would weaken and erode people’s confidence in the currency and the banking system. “I want to know from the Prime Minister the name of any country he may think of where people have deposited their money in the bank, but they are not allowed to withdraw their money. This alone is enough to condemn what has been done.” Singh further noted that the manner in which the plan was being implemented would hurt agricultural growth, small industry and 90 per cent of the people who are in the informal sectors of the economy.

“Every day the banking system comes with modification of the rules... under which people can withdraw money. That reflects very poorly on the Prime Minister’s Office, the Finance Minister’s Office and the Reserve Bank of India,” Singh said.

“I am very sorry that the RBI has been exposed to this sort of criticism,” said Singh, who has held the posts of Finance Minister and RBI Governor in the past.

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