SC on Demonetization: Supreme Court Verdict..!?
SC on Demonetization: supreme court Verdict..!?
In november 2016, the central government headed by prime minister Narendra Modi declared the demonetization of Rs 1000 and Rs 500 notes. The central government had said that this demonetization was done in an effort to curb the circulation of counterfeit notes and bring out the hoard of black money and regulate the economy. Following this, around 58 petitions were filed in the supreme court against the central government's demonetization move. The petitions alleged that by declaring the old Rs 1000 and Rs 500 notes invalid, around Rs 10 lakh crore were taken out of circulation overnight.
Further, the petitioners argued in the supreme court that such actions and decisions should not be taken by the government and that the court should quash it. The Centre, on the part of the government, said that the court cannot decide a matter which cannot provide affirmative relief. It is 'like going back to the past' or 'reviving a cracked egg'. Demonetisation is a well-considered decision. Counterfeit notes, financing of terrorism, black money, and part of a larger strategy to combat tax evasion. Subsequently, the supreme court consolidated all the petitions against demonetization into a single case. It was investigated by a 5-judge constitutional bench headed by Justice S.A. Naseer. The session heard arguments before the winter recess. Justices PR Kavli, AS Bopanna, V. Ramasubramanian, and P.V. Nagaratna were the other members of the session.
In november 2016, the central government headed by prime minister Narendra Modi declared the demonetization of Rs 1000 and Rs 500 notes. The central government had said that this demonetization was done in an effort to curb the circulation of counterfeit notes and bring out the hoard of black money and regulate the economy. Following this, around 58 petitions were filed in the supreme court against the central government's demonetization move. The petitions alleged that by declaring the old Rs 1000 and Rs 500 notes invalid, around Rs 10 lakh crore were taken out of circulation overnight.
Further, the petitioners argued in the supreme court that such actions and decisions should not be taken by the government and that the court should quash it. The Centre, on the part of the government, said that the court cannot decide a matter which cannot provide affirmative relief. It is 'like going back to the past' or 'reviving a cracked egg'. Demonetisation is a well-considered decision. Counterfeit notes, financing of terrorism, black money, and part of a larger strategy to combat tax evasion. Subsequently, the supreme court consolidated all the petitions against demonetization into a single case. It was investigated by a 5-judge constitutional bench headed by Justice S.A. Naseer. The session heard arguments before the winter recess. Justices PR Kavli, AS Bopanna, V. Ramasubramanian, and P.V. Nagaratna were the other members of the session.
The central government should have taken action in consultation with the reserve bank of india (RBI) and after six months of consultation between the two, he said. Judge B.V. Only Nagaratna ruled against the central government. He said that it is wrong to demonetize 1000 and 500 rupee notes through a single decree. It is not acceptable to take such a drastic step without consulting the Parliament.