‘Demonetisation is valid’: SC says Centre’s decision-making process cannot be ‘flawed’

'Demonetisation is valid': SC says Centre's decision-making process cannot be 'flawed'

New Delhi: ‘2016 demonetisation is valid’, Supreme court gives verdict on note ban. Justice B R Gavai says Centre’s decision-making process cannot be flawed as there was consultation between RBI and govt. SC dismisses batch of pleas challenging Centre’s 2016 decision on demonetisation, upholds move. Notification dated November 8, 2016 valid, satisfies test of proportionality, Supreme Court said. “Not relevant whether objective achieved or not,” Justice B R Gavai of Supreme Court on demonetisation. The Supreme Court has pronounced its judgment today on a batch of pleas challenging the government’s 2016 decision to demonetise currency notes of Rs 1,000 and Rs 500 denominations. A five-judge Constitution bench headed by Justice S A Nazeer, who will retire on January 4, has pronounced its verdict on the matter on January 2, when the top court will reopened after its winter break.

According to Monday’s cause list of the top court, there were two separate judgements in the matter, which will be pronounced by Justices B R Gavai and B V Nagarathna. Besides Justices Nazeer, Gavai and Nagarathna, the other members of the five-judge bench are Justices A S Bopanna and V Ramasubramanian.

The top court had, on December 7, 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.

Why did people file petition against 2016 demonetisation? Here’s all you need to know

Supreme Court today gave a verdict in favour of the 2016 demonetisaton. Justice B R Gavai says Centre’s decision-making process cannot be flawed as there was consultation between RBI and govt. SC has further dismissed batch of pleas challenging Centre’s 2016 decision on demonetisation. But, why did people file a petition against it? Check here. 

– Demonetisation created a lot of confusion and chaos across country and as a result, fifty-eight petitions were filed in the Supreme Court challenging the notes ban, arguing that it was not a ‘considered’ decision of the government and court should put it down.

– The government, however argued that the court cannot decide a matter when no tangible relief can be granted. It would be like “putting the clock back” or “unscrambling a scrambled egg”, the centre said.

– A five-judge Constitution bench headed by Justice SA Nazeer heard the arguments before its winter break and on December 7, suspended the verdict. 

– In its defense, the centre said the demonetisation was a “well-considered” decision and part of a larger strategy. They further stated that this decision was taken to combat the menace of fake money, terror financing, black money, and tax evasion.

– RBI’s view on note ban: The RBI admitted that there were “temporary hardships” which are part of the nation-building process. 

Bureau Report

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