10 facts stated by Supreme Court on Demonetization

The judges stated that consultation between the two parties lasted for six months and that the Center was compelled to act after speaking with the RBI Central Board. According to the Supreme Court, due to a lack of proportionality, the demonetization process cannot be invalidated. Below are the 10 facts stated by Supreme Court on demonetization

New Delhi: The Supreme Court supported Prime Minister Narendra Modi’s 2016 note ban today in a historic 4-1 majority decision and stated that it was “not important” if the overnight ban’s goal was accomplished. One judge objected, calling the action “illegal.”

10 facts stated by Supreme Court on demonetization

According to a constitution bench, the central government’s November 8, 2016, decree to ban the 1,000 and 500 rupee notes is lawful. The decision-making process cannot be criticized solely because the Centre initiated the action.
According to the court, there is an “inbuilt safeguard,” and the Centre must communicate with the Reserve Bank of India (RBI) before taking action. Four of the five judges agreed that the six months of this dialogue were real.
The Supreme Court concluded that it is “not significant” whether or not the goal was accomplished and added that the 52-day window provided to exchange the prohibited notes was not arbitrary. “When it comes to concerns of economic policy, extreme prudence is required. The court cannot replace the executive’s knowledge with its own, “Justice BR Gavai studied the order before he spoke.
Justice BV Nagarathna, who strongly dissented from the majority opinion, called the Centre’s notes ban “vitiated and unconstitutional,” but added that the status quo could not be changed at this time. According to the judge, the action may have been carried out by a Parliamentary act.
The judge ruled that the demonetization decree was “an exercise of power against to law and unlawful,” adding that it was completed in only 24 hours.
Justice Nagarathna questioned whether the central bank had anticipated the problems brought on by Demonetization.
According to her, records and documents presented by the RBI and the Centre, which contained language like “As requested by the Central Government,” demonstrate that “no independent application of mind by the RBI” occurred.
The Center’s overnight decision to outlaw 1,000 and 500 rupee notes was contested in 58 petitions. The action eliminated 10 lakh crore from circulation.
According to petitions, millions of people were compelled to stand in line for cash, and it was claimed that the choice was ill-considered and caused great suffering.
The administration had contended that the court could not decide the matter since no real relief could be given. According to the Center, it would be like “turning back the clock” or “unscrambling an egg.” According to the statement, Demonetization was a “well-considered” move that was a component of a bigger plan to tackle the threat posed by counterfeit money, terror financing, black money, and tax evasion.