SC upholds the decision of Central government to demonetise the currency notes in 2016
The Centre’s 2016 decision to demonetise Rs. 500 and Rs. 1000 currency notes and says the decision, being Executive's economic policy, cannot be reversed
New-Delhi: The Supreme Court upheld the decision of the Central government taken in 2016 to demonetise the currency notes of Rs 500 and Rs 1000 denominations.
A five-judge Constitution bench dismisses a batch of petitions challenging the Centre’s 2016 decision to demonetise Rs. 500 and Rs. 1000 currency notes and says the decision, being Executive’s economic policy, cannot be reversed.
Supreme Court says there was consultation between the Centre and the RBI before demonetisation. There was a reasonable nexus to bring such a measure, and we hold that demonetisation was not hit by doctrine of proportionality.
Supreme Court says RBI does not have any independent power to bring in demonetisation and the decision was taken after the consultation between the Centre and RBI.
Earlier, it had asked the Centre and Reserve Bank of India to place before it the records pertaining to the 2016 demonetisation decision in a sealed envelope.
On December 7, Supreme Court had directed Centre and Reserve Bank of India (RBI) to submit relevant record relating to government’s 2016 decision and reserved its verdict.
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