Big relief to NDA government in demonetisation case, Supreme Court dismisses petitions filed

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The NDA government led by PM Modi has got a big relief from the Supreme Court in the matter of demonetisation. On Monday (January 2, 2023), the constitution bench of the court rejected the petitions filed against the Centre’s 2016 demonetisation decision (related to the closure of 500 and 1000 rupee notes) and justified the move of the Centre. The bench has bluntly said that the decision making process related to note ban was not wrong and there was no error in it.

The court said that there was a consultation between the Center and the Reserve Bank of India (RBI) before demonetisation. RBI does not have independent authority or power to bring or do demonetisation. This decision was taken only after discussions between the Center and the RBI. Justice BR Gavai said during this time that there cannot be a flaw in the decision of the Center as there was a discussion on this issue between the RBI and the Center earlier. It is not relevant whether its objectives were achieved or not.

According to the court, the notification issued on November 8, 2016 was valid and under process. Justice BV Nagaratna, however, differed with Justice Gavai on the issue of Centre’s powers under Section 26(2) of the Reserve Bank Act. In fact, the Supreme Court had directed the Center and the Reserve Bank of India (RBI) on December 7 to produce relevant records related to the government’s decision to demonetise Rs 1,000 and Rs 500 notes in 2016.

The bench had heard the arguments of the counsel for the petitioners, including Attorney General R Venkataramani, RBI counsel and senior advocates P Chidambaram and Shyam Devan, on the petitions challenging the Centre’s 2016 decision and reserved its order.

Describing the decision to demonetise Rs 1,000 and Rs 500 notes as ‘seriously flawed’, former finance minister and senior Congress leader P Chidambaram had then argued that the central government should consider any proposal related to legal tender on its own. cannot start.

This can be done only on the recommendation of the central board of the RBI. Opposing the court’s attempt to revisit the demonetisation exercise, the government had said that the court cannot decide a case when ‘in the past No concrete relief can be given by returning.

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