Demonetisation Verdict Today: On January 2, the Supreme Court upheld the Union Government’s November 2016 decision to demonetize Rs 500 and Rs 1000 currency notes. There were no flaws in the decision-making process, and it passed the proportionality test. The power available to the centre can be exercised for all series of bank notes, and the windows provided for note exchange were reasonable.
A five-judge Constitution bench dismisses a slew of petitions challenging the Centre’s 2016 decision to demonetize Rs. 500 and Rs. 1000 currency notes, ruling that the decision, as Executive economic policy, cannot be overturned.
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— NDTV (@ndtv) January 2, 2023
According to Justice Nagarathna, the Justice Gavai Judgment Does Not Take Into Account That Only the RBI’s Board Can Recommend Demonetisation.
Justice Nagarathna also stated that the central government’s power to demonetize must be exercised through the legislative process.
Because the powers of the central government are vast, they should be exercised in a broad sense. A discussion about demonetisation is required. He went on to say that demonetisation requires an ordinance or legislation.
The Supreme Court upheld the Centre’s 2016 decision to demonetize currency notes in denominations of Rs 1,000 and Rs 500 on Monday.
According to the Supreme Court, there was consultation between the Centre and the RBI prior to demonetisation.
“There was a reasonable connection to bring such a measure, and we hold that demonetisation was not affected by the proportionality doctrine,” the Supreme Court stated.
“The Supreme Court has ruled that the RBI lacks independent authority to implement demonetisation, and the decision was made after consultation between the Centre and the RBI,” it added.
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The RBI previously acknowledged in its submissions that there were “temporary hardships.” “and that those, too, are an essential part of the nation-building process, but there was a mechanism in place to solve the problems that arose.
The Centre recently told the Supreme Court in an affidavit that the demonetisation exercise was “well-planned.” “The decision is part of a larger strategy to combat the threat of counterfeit money, terror financing, black money, and tax evasion.
