Supreme Court "Validates" the decision of Demonetization : Said Govt decision can not be reversed
<p>The supreme court on Monday cleared its decision on the govt’s move to demonetize the 500 and 1000 rs note back in 2016, and sad thatthe government’s move is “Valid.”The five-judge Constitution bench of the apex court headed by Justice SA Nazeer said that the decision, being the Executive’s economic policy, cannot be “reversed”. The top court also said that the Centre’s decision-making process “could not have been flawed” as there was consultation between the Reserve Bank of India (RBI) and the Central government.Further they made the statement during the hearing that the notification of Demonetization of Indian Currency notes of 1000 and 500 rs can not be “unreasonable.” “The notification dated November 8, 2016, is valid and satisfies the test of proportionality,” the bench, which also comprised justices BV Nagarathna, BR Gavai, AS Bopanna, and V Ramasubramanian, said.Further it was said , it is not neccessary to know that the objective for which the the decision was taken is fulf</p>
03:00 PM Jan 02, 2023 IST
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mediology
The supreme court on Monday cleared its decision on the govt’s move to demonetize the 500 and 1000 rs note back in 2016, and sad thatthe government’s move is “Valid.”
The five-judge Constitution bench of the apex court headed by Justice SA Nazeer said that the decision, being the Executive’s economic policy, cannot be “reversed”. The top court also said that the Centre’s decision-making process “could not have been flawed” as there was consultation between the Reserve Bank of India (RBI) and the Central government.
Further they made the statement during the hearing that the notification of Demonetization of Indian Currency notes of 1000 and 500 rs can not be “unreasonable.” “The notification dated November 8, 2016, is valid and satisfies the test of proportionality,” the bench, which also comprised justices BV Nagarathna, BR Gavai, AS Bopanna, and V Ramasubramanian, said.
Further it was said , it is not neccessary to know that the objective for which the the decision was taken is fulfilled or not. And then By a 4:1 majority verdict, the Supreme Court upheld the Centre’s 2016 decision on demonetisation.
Justice BV Nagarathna, who differed from the majority judgment on the point of the Centre’s powers under section 26(2) of the RBI Act, held that demonetisation was “vitiated” and “unlawful”.
“Parliament should have discussed the law on demonetisation, the process should not have been done through a gazette notification. Parliament cannot be left aloof on an issue of such critical importance for the country,” Justice Nagarathna said.
Calling the scrapping of the high-value currency notes “deeply flawed”, Chidambaram had argued that the Union government cannot on its own initiate any proposal relating to legal tender, which can only be done on the recommendation of the RBI’s central board. The RBI had earlier admitted in its submissions that there were “temporary hardships” and that those too are an integral part of the nation-building process, but there was a mechanism by which the problems that arose were solved.
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