The former finance minister, however, refused to name the ruler and said that though demonetization had failed to meet any of the objectives it aimed to achieve, the PM Modi government has won the "perception battle".
Mr Sinha made the statement at launch of the book - Demonetization and the Black Economy by economist Arun Kumar.
"There was another case in the 16th century in Delhi about a ruler who was famous for shifting the capital from Delhi to Daulatabad. But we forget that he also had demonetised the currency in his time. We have gone back five centuries to repeat the mistake which that gentleman, that king had made," he said.
Mr Sinha, however, refused to confirm if he was making the comparison to Muhammad bin Tughluq. Making another indirect reference attack on PM Modi, he said "not policy-makers but only one policy-maker decides what has to be done".
"What has been the other side-effect? Tax-terrorism, which the BJP had criticised when we were in opposition. It has come back now and 1.8 million cases have been started by the income tax department (since demonetisation)," Mr Sinha said.
(With PTI inputs)