Nitish Kumar's party Janata Dal United alleged that BJP knew about the currency ban.
Bihar Chief Minister Nitish Kumar's Janata Dal United has alleged that a series of land purchases made by the BJP in the state for party offices were designed to pre-empt the centre's crackdown on black or undisclosed money by banning 500 and 1,000 rupee notes.
That timing of the purchases, the JDU alleges, shows that the ruling party had been tipped off about the demonetisation move and so it rushed through most of the 23 deals between August and September this year. The notes ban was announced on November 8.
The state's ruling party has also alleged that the BJP paid less than the circle rate or base cost of the land in some cases and has demanded an investigation.
"They were aware of the demonetization, so most of the deals were executed in August and September," said Janata Dal (United) spokesperson Neeraj Kumar.
The BJP has rejected the allegations saying all its purchases are above-board and were paid for by cheque, which precludes the use of black money. Negotiations, Bihar's chief opposition party said, happened over many months and the deals were struck only now.
"BJP president Amit Shah has instructed all party units to look for plots to construct party offices everywhere. Land was purchased in other states too," said Bihar BJP chief Mangal Pandey, emphasising that documents related to all land purchases made by the party are in the public domain.
Senior BJP leader and former Deputy Chief Minister Sushil Modi scoffed at the allegation that top-secret details of the demonetisation had been leaked to BJP units.
"Rahul Gandhi says that even Finance Minister Arun Jaitley didn't know about the notes ban. On the other hand they say that people in the BJP were tipped off. They are people who did nothing against black money in the 10 years that they were in power," Sushil Modi said.
Congress vice president Rahul Gandhi and other opposition parties, including the JDU, have united to attack the government on the implementation of the notes ban and demand that the Prime Minister explain it in parliament. They have also demanded an inquiry by a joint parliamentary committee or JPC, alleging a selective leak of information about the ban.
Nitish Kumar has, however, been overt in his praise of PM Modi's move, reportedly upsetting both his allies the Congress and Lalu Yadav's RJD.