Supreme court judgement on demonetisation: The decision was valid, says apex court
New Delhi : In a landmark judgement. Supreme Court on Monday backed Prime Minister Narendra Modi’s decision in 2016 to demonetise the Indian currency. 4 out of 5 judges voted in favour of the decision and said it could not be faulted just because the centre had initiated it.
More than 50 petitions had challenged the Centre's decision to ban ₹1000 and ₹500 currency notes overnight with the move over 10,00,000 crores for 5 out of circulation.
Justice BV Nagarathna in her dissenting view held that though demonetisation was well-intentioned and well thought of, it has to be declared unlawful on legal grounds (and not on the basis of objects).
Below are the top quotes used by the Supreme Court to praise the demonetization:
• “The measure was well-intentioned and well thought of.”
• “It targeted evils such as black money, terror funding, and counterfeiting.”
• “It is not relevant whether the objective behind the decision was achieved or not.”
• “There was consultation between the Centre and RBI for a period of six months.”
• “There was a reasonable nexus to bring such a measure, and we hold that demonetisation was not hit by the doctrine of proportionality.”
• “The measure is declared unlawful purely on legal grounds and not on the basis of objects.”
• “When the proposal for demonetisation originates from the Central Government, it is not under Section 26(2) RBI Act. It is to be a way of legislation…”
• “Demonetisation of all series of notes at the instance of Central Government is a far more serious issue than the demonetisation of particular series by the bank.”
• “Parliament is a miniature of the country. Parliament, which is the centre of democracy, cannot be left aloof in a matter of such critical importance.”
• “… there are words ‘as desired by the Central Government’… this demonstrates there was no independent application by RBI. The entire exercise was carried out in 24 hours.”
• The “opinion given by RBI cannot be construed as a ‘recommendation’ under Section 26(2) of the RBI Act.”