Supreme Court On Demonetisation: The Supreme Court today delivered its judgment on the petitions filed claiming that demonetisation by the central government is illegal. A five-judge bench of the Supreme Court upheld the central government’s decision by a four-to-one majority. Supreme Court Justice B.V. Nagarathna (Just. BV Nagarathna) ruled against it. He has pointed out that the RBI has not used its discretion on the demonetisation decision taken by the central government.
The Supreme Court dismissed 58 petitions while upholding the central government’s decision. take B.V. Nagaratna, while giving judgment against the decision taken by the Centre, objected to the central government taking all decision-making powers under Section 26(2) of the RBI Act.
Judge. B. V. What did Nagaratna say?
Ny. Nagaratna said that it was not acceptable that the RBI Act did not take into account the fact that the central government would take the initiative regarding the decision of demonetisation. The Central Government’s decision to demonetise could be taken under Entry 36 in List 1. This section is about taking decisions about currency, coinage, foreign exchange.
Under Section 26(2) of the RBI Act, the proposal for demonetisation should have come from the RBI. He said that central government demonetization of all series of notes is more serious than RBI demonetization of some series. He also said that the decision of demonetisation should have been made by bringing a law and not by bringing a gazette notification. The sentiments of the country resonate in the Parliament. In a democracy, it was inappropriate for the central government to keep Parliament in the dark from such a major decision.
This is not a recommendation of the RBI
According to the documents submitted by the RBI in the court during the hearing, the words ‘Central Government desired/ desired’ were used. is Accordingly, the demonetisation decision was not an independent decision taken by the RBI. The decision of demonetisation was taken within 24 hours. The opinion of RBI cannot be considered as a recommendation. Nagaratna said in his result paper.
Demonetisation not effective?
Ny. Nagaratna said in his verdict that 98 percent of demonetised notes were exchanged through this bank. Apart from that, a new Rs 2000 note was introduced into circulation. This decision means that the demonetisation decision has not had the desired effect or has not been effective. Nagaratna pointed out.
What did the conclusion of the verdict say?
Justice. Nagaratna concluded in his judgment that demonetisation was well-intentioned. The decision-making process for demonetisation has gone wrong. On a legal analysis this decision is declared illegal. The decision of demonetisation is not wrong. Nagaratna said.
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