New Delhi: Supreme Court will deliver its verdict in a batch of 58 petitions filed challenging the Centre’s 2016 demonetisation policy. The 5-judge constitution bench headed by Justice Abdul Nazeer, comprising Justice BR Gavai, Justice A.S. Bopanna, Justice V. Ramasubramanian, and Justice B.V. Nagarathnawill, will deliver the verdict a day before Justice Nazeer is due to retire.
Two opinions, one authored by Justice BR Gavai and another authored by Justice BV Nagarathnaare expected from the verdict. The judgment was reserved on December 7, after five days of arguments and while reserving, SC had asked the Centre and RBI to produce all relevant documents and records regarding the policy.
What are the petitioners’ arguments?
The petitioners argue that the process followed by the government was flawed and should be struck down. They argue that the process did not follow rule of law. They say that any power to demonetise is only on the recommendation of the RBI’s Central Board but the process violated the RBI Act by demonetising all series of Rs 500 and Rs 1000 currency notes. According to former Union Minister P Chidambaram, who is presenting the arguments, the Finance Ministry submitted the documents to the RBI at 5:30 PM on 8 November 2016 while the announcement was made at 8 PM.
What does the Centre say?
The Central Government argues that demonetisation was a step to tackle fake currency notes, unaccounted wealth and terrorism financing. Centres says that demonetisation should not be seen or scrutinised in isolation from the rest of the connected economic policy measures and that the larger benefits brought to the economic system and one-time hardship faced by people are incomparable.
The Centre also argues that the policy extricated fake currency significantly from the system and brought in the benefits of a digital economy.
What does RBI say?
RBI told the court that the process under the RBI Act to make a recommendation to the Centre was followed and the prescribed quorum was met in the RBI’s Central Board meeting that decided to make the recommendation.
On the hardships faced, RBI argues that opportunities were given to people, and wide arrangements were made to enable the public to exchange their money.
