Image Source: AGENCIES

Date :- 02-01-2023
Watsupptoday Desk

The Supreme Court has upheld the decision of the Union government taken in 2016 to demonetise the currency notes of Rs 500 and Rs 1000 denominations. While dismissing a batch of pleas challenging the note ban, the Supreme Court said the decision could not be faulted just because the Centre initiated it. "The demonetisation exercise cannot be struck down on grounds of proportionality". The Union government is required to take action after consultation with the Central Board of the Reserve Bank of India and there was a consultation between the two for six months, the court observed. There were two separate judgements in the matter which were pronounced by Justices BR Gavai and V Nagarathna. Besides Justice Gavai and Justice Nagarathna, the other members of the five-judge bench are Justices Nazeer, Justices AS Bopanna and V Ramasubramanian. Justice BV Nagarathna said demonetisation could have been executed through an act of legislation and not by the government. "Demonetisation at the behest of the Centre is a far more serious issue as compared to demonetisation on recommendations of the RBI. Powers of the Union government being vast, must be exercised only by legislation rather than by an executive order," Justice Nagarathna said in her order. The top court had, on December 7, directed the Centre and the Reserve Bank of India (RBI) to put on record the relevant records relating to the government's 2016 decision and reserved its verdict.