In a unanimous ruling on Monday, the Supreme Court endorsed Prime Minister Narendra Modi's 2016 note ban and stated that the move could not be criticised solely because it was made by the Center.
New Delhi: In a unanimous ruling on Monday, the Supreme Court endorsed Prime Minister Narendra Modi’s 2016 note ban and stated that the move could not be criticised solely because it was made by the Center.
The apex court stated in its verdict that the 52-day window provided for exchange was acceptable and that the demonetization initiative could not be invalidated on the basis of proportionality. According to four of the five judges on the bench, the Reserve Bank of India (RBI) and the Center were in communication for six months prior to any action being taken.
Demonetization may have been implemented through a parliamentary act rather than by the government, according to Justice BV Nagarathna, who dissented from the majority ruling.
Overall, 58 petitions challenged the Center’s November 2016 decision to ban Rs 1,000 and Rs 500 currency notes. As a result of the move, Rs 10 lakh crore was removed from circulation overnight.
The petitioners claimed that it was not a well-planned decision on the part of the central government, and the court should come forward and take action against demonetization.
The government maintained that a case cannot be decided by the court if no real relief can be given. As the centre described it, it would be like “turning back the clock” or “unscrambling a jumble.” Demonetization, according to the statement, was a “well-considered” move that was a component of a bigger plan to tackle the threat posed by counterfeit money, terror financing, black money, and tax evasion.
Before going on winter break, the five-judge Constitution bench, presided over by Justice SA Nazeer, heard the arguments. Justices BR Gavai, AS Bopanna, and V Ramasubramanian were the other members of the bench.