Supreme Court Verdict on Notebandi The decision of demonetisation taken by the Modi government in 2016 has got a clean chit today. The Supreme Court, while justifying the decision, said that the government has taken this decision only after a thorough discussion with the RBI. Meanwhile, a judge has expressed dissent in this decision pronounced by a five-judge bench. Justice BV Nagarathna termed demonetisation as illegal.
Demonetisation should have been done by making a law
Supreme Court Justice BV Nagarathna, who delivered the dissenting judgment on demonetisation, said that the entire Rs 500 and Rs 1,000 currency notes should be demonetised through a law and not a gazette notification. The judge said that Parliament cannot be left aloof in a matter of such vital importance.
Correct procedure followed- SC
While hearing more than 3 dozen petitions against demonetisation, the court said that nothing wrong has been found in its process. The Supreme Court said that the RBI had no independent power to bring about demonetisation and the decision was taken only after consultation between the Center and the RBI.
58 people including Chidambaram had filed a petition against demonetisation
Terming demonetisation as wrong and flawed, Congress leader and senior advocate P Chidambaram had argued that the government cannot on its own initiate any resolution related to legal tender, which can only be done on the recommendation of the central board of the RBI . Explain that the court will give its verdict on 58 petitions against demonetisation.
Meanwhile, the court also made many big comments in this decision. Let us know the 10 big things about the Supreme Court’s decision on demonetisation.
- The Supreme Court, while giving its verdict on 58 petitions against demonetisation, said that the decision was correct. Along with this, the court also dismissed all the petitions.
- On the Centre’s decision to invalidate Rs 1,000 and Rs 500 notes, the court said the government took the decision only after extensive discussions with the RBI and the central bank has no power to demonetise notes.
- The apex court said that the decision cannot be reversed as it is the economic policy of the government.
- Meanwhile, the judgment also featured a split, with Justice BV Nagaratna dissenting in a separate opinion from Justice BR Gavai’s judgment on the point of Centre’s powers under Section 26(2) of the RBI Act.
- Justice BV Nagaratna, giving a dissenting judgement, said that demonetisation should have been brought about through an Act of Parliament and not by the government.
- At the same time, the court said that the notification of demonetisation brought on November 8, 2016 was valid and the time of 52 days given to exchange the notes was also quite reasonable.
- The court had reserved the verdict on December 7 in 2022 after hearing the arguments of the government and the petitioners.
- Let us tell you that Congress leader and senior advocate P Chidambaram had also filed a petition against demonetisation, in the petition it was said that this decision of the Center is wrong and flawed.
- The demonetisation was termed by the government as a ‘well thought out’ decision and part of a larger strategy to combat the menace of counterfeit money, terrorism financing, black money and tax evasion.
- During the hearing, Attorney General R Venkataramani, representing the government, had said that demonetisation was an economic policy designed to remove many evils.
The government had given this argument
In an affidavit, the Center recently told the apex court that the demonetisation exercise was a “well thought out” decision and part of a larger strategy to tackle the menace of fake money, terrorism financing, black money and tax evasion.