2016 Note Ban Valid, Says Supreme Court On Demonetisation

SC dismisses petitions
against DeMo

Supreme Court dismissed petitions against demonetisation in 2016 of Rs 500, Rs 1,000 banknotes in a 4:1 majority judgement

SC upholds Centre’s
decision

The Supreme Court said, “The demonetisation exercise cannot be struck down on grounds of proportionality.”

‘Demonetisation by Centre
more serious issue’ 

Justice BV Nagarthana noted, “Demonetisation at the behest of the Centre is a far more serious issue as compared to demonetisation on the recommendations of the RBI. Powers of the Union government being vast, must be exercised only by legislation rather than by an executive order.”

Petitions challenging
the 2016 note ban

The top court’s judgement on demonetisation came on a batch of petitions challenging the demonetisation exercise 

2016 note ban: What
petitioners wanted 

The petitioners in the case cited Section 26 (2) of the RBI seeking details on:
- Decision-making process
- Whether the recommendation to demonetise banknotes considered relevant factors
- Whether demonetisation’s objective was achieved
- If it withstood the test of proportionality
- Top court’s powers to grant declaratory relief

P Chidambaram on
Supreme Court’s verdict

Advocate and senior Congress leader P Chidambaram tweeted, “We are happy that the minority judgement has emphasised the important role of Parliament in a democracy. We hope that in future an unbridled executive will not thrust disastrous decisions on Parliament and the people.”

Jairam Ramesh on
demonetisation verdict

Congress leader Jairam Ramesh said the verdict said nothing on whether stated objectives were met or not. He added the verdict deals with the issue of process of decision making and not the outcomes

‘Demonetisation’s
objectives not met’ 

Jairam Ramesh said, “None of these goals- reducing currency in circulation, moving to cashless economy, curbing counterfeit currency, ending terrorism and unearthing black money- was achieved in significant measure.”

Demonetisation
announcement

PM Modi announced the demonetisation of Rs 500, Rs 1,000 banknotes on November 8, 2016

Demonetisation objectives

Rs 500 and Rs 1,000 banknotes were demonetised in 2016 with the following objectives:
Curbing black money flow in the economy
- Promoting digital payments

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