NEW DELHI: The SC in its first hearing of 2023 withheld its decision on the note ban invoked by the Central govt in 2016 to demonetize the currency notes of Rs 500 and Rs 1000. ” Decision can’t be reversed being Executives economic policy, said the SC in its order.”
A five-judge Constitution bench dismissed a batch of petitions challenging the Centre’s 2016 decision on Monday. The apex court says there was consultation between the Centre and the RBI before demonetisation. There was a reasonable nexus to bring such a measure, and we hold that demonetisation was not hit by the doctrine of proportionality, the SC said.
Former Union Minister and senior advocate P Chidambaram argued that the centre has not examined alternate methods to control fake currency or black money. directed the Centre and the Reserve Bank of India (RBI) to put on record the relevant records relating to the government’s 2016 decision and reserved its verdict. According to the Centre, the demonetisation exercise was a “well-considered” decision and part of a larger strategy to combat the menace of fake money, terror financing, black money and tax evasion.
The court had on December 7th, directed the Centre and the Reserve Bank of India (RBI) to put on record the relevant records relating to the government’s 2016 decision and reserved its verdict. It has heard a batch of 58 petitions challenging the demonetisation exercise ever since.