NEW DELHI: A 5-judge Constitution bench of the Supreme Court on Monday upheld the validity of Centre’s November 2016 decision to demonetise Rs 500 and Rs 1000 currency notes.
Justice B R Gavai said Centre’s decision-making process cannot be flawed as there was consultation between RBI and government for six months.
The SC had, on December 7, directed the Centre and the Reserve Bank of India (RBI) to put on record the relevant records relating to demonetisation, and reserved its verdict.
Two sides
Petitioners’ counsel P Chidambaram had argued that the government cannot initiate any proposal relating to legal tender. This can happen only on the recommendation of the RBI’s central board.
Attorney General R Venkataramani resisted judicial scrutiny saying the court cannot decide a matter when no tangible relief can be granted by way of “putting the clock back” and “unscrambling a scrambled egg”.
Justice B R Gavai said Centre’s decision-making process cannot be flawed as there was consultation between RBI and government for six months.
The SC had, on December 7, directed the Centre and the Reserve Bank of India (RBI) to put on record the relevant records relating to demonetisation, and reserved its verdict.
Two sides
Petitioners’ counsel P Chidambaram had argued that the government cannot initiate any proposal relating to legal tender. This can happen only on the recommendation of the RBI’s central board.
Attorney General R Venkataramani resisted judicial scrutiny saying the court cannot decide a matter when no tangible relief can be granted by way of “putting the clock back” and “unscrambling a scrambled egg”.
