SC reserves order on demonetisation plea, asks Centre, RBI to present related records
The Supreme Court on Wednesday directed the Centre and the Reserve Bank of India (RBI) to submit relevant records in connection with the government’s 2016 demonetisation decision for its perusal.
A bench headed by Justice S A Nazeer reserved the judgment after hearing detailed arguments on a batch of petitions challenging the demonetization move.
The bench, also comprising Justices B R Gavai, A S Bopanna, V Ramasubramanian, and B V Nagarathna, said: “Counsel of the Union of India and Reserve Bank of India is directed to produce the relevant records.”
Attorney General R Venkataramani represented the Centre and senior advocate Jaideep Gupta represented the RBI, and senior advocates P Chidambaram and Shyam Divan appeared for some of the petitioners.
Reserving the judgment on the petitions, the top court directed the parties to file written submissions by December 10.
The AG contended that he will submit the relevant records in a sealed cover.
On Tuesday, Justice Nagarathna said the Court will not go into the merits of the decision, but it can always go into the manner it was taken, two things are totally different.
“Because it is an economic policy court cannot fold its hand and sit. Merits of the decision, it is for the government in its wisdom it knows what is best for the people, but while taking that decision what was the material on record, relevant considerations,” said Justice Nagarathna.
Chidambaram, representing a petitioner, said the government should confidently defend the decision and also the decision-making process (involved in 2016 demonetisation), and added they should place those documents before the court.
He said that if the government were to adopt a route through Parliament, then the parliamentarians would have stopped the policy but they did not follow the legislative route.
Chidambaram submitted that the RBI Governor must be fully aware of the fact that in 1946 and 1978, the central bank opposed demonetisation and they resorted to the plenary power of the legislature.
“Surely the history of RBI is published by the RBI. They must be deemed to know that also,” he said, urging the Court to see the documents to see whether the decision-making was fair and not arbitrary.
The Centre had told the Supreme Court that the November 2016 decision to withdraw legal tender of Rs.500 and 1,000 currency notes was one of the critical steps in the series of transformational economic policy steps and this decision was taken after extensive consultation with the RBI and advance preparations.
The Union Ministry of Finance, in an affidavit, said: “The withdrawal of legal tender character of a significant portion of total currency value was a well-considered decision. It was taken after extensive consultation with the RBI and advance preparations.”
It further added that demonetisation was also a part of a larger strategy for combating the menace of fake money, terror financing, black money, and tax evasion.
“The notification issued on 08.11.2016 was a major step to fight the menace of fake currency notes, storage of unaccounted wealth, and financing of subversive activities,” it said.
[With Inputs from IANS]
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This court is taking India along a very dangerous path and the idiots who sit in the opposition go along with it simply because of their hatred towards Modi (or rather his success as a politician). If this trend continues, Indian SC will be the analog of Pak army. No representation, no responsibility but holds all the power. It is past time for this Government to wake up from its deep slumber on this matter.
Demonetization was to enrich the ruling party.
I am sure Dr Swamy can throw light on it if he wishes to do so. Shades of Gurumurthy and from which time he lost his connection to Namo.
Not sure why SC spends its valuable time on issues affecting only the rich and corrupt? Looks like it is acting like an opposition party
SO many poor ppl died in Queue. I really dont thisnk any rich was impacted – reason all the money was returned back to RBI..so no uncovering of balck money happened 🙂
Supreme Court is now a part of Indian political opposition party. Time to ignore supreme court.
Supreme Court operates from Planet-X in Andromeda Galaxy.