demonetisation Monday on the questions arising continuously on the process of Supreme court put an end to The process of this decision taken to curb corruption and black money has been upheld by the apex court. According to senior journalist Ashok Bagadia, before justifying the decision, the court had examined the whole process on six points. On this basis the court central government All the 58 petitions filed against have been dismissed. The court has also argued that there is no error in the verdict. However, the lone woman judge in the bench, BV Nagaratna, has questioned the process of demonetisation. He has termed it as illegal. Justice Gavai pronounced the verdict on behalf of the Supreme Court bench. Justice Nagaratna kept his argument. Let us know on what basis the Supreme Court examined this decision.
1- Does the Government of India have the power to demonetise all series of notes?
Justice Gavai – The Constitution and the RBI Act give the central government the right to demonetise. Till now the right of demonetisation was used twice, in 2016 the government used this right for the third time. RBI alone cannot take this decision.
Justice Nagaratna – There should have been a discussion in the Parliament before demonetisation, this decision is going to have a deep impact on the people and economy of India, so it cannot be done just by issuing a notification. An ordinance should have been brought on this.
2- Section 26 (2) was followed? Is the demonetisation process legally valid or not?
Justice Gavai: Section 26(2) of the RBI Act gives the central government the right to demonetize notes of any series.
Justice Nagaratna: Under Section 26(2) of the Reserve Bank of India Act, the Central Government is empowered to discontinue any series of notes, in the Act ‘any series’ is written which cannot mean “all series”.
3- Was it necessary to bring a law in Parliament before demonetisation?
Justice Gavai: Any decision cannot be blamed because it has been taken by the government. Before demonetisation, talks were held between the government and the RBI for six months.
Justice Nagaratna: The opinion of the Reserve Bank cannot be treated as a recommendation in any way. It should have been discussed in the Parliament, since the legal process was not followed, that is why it was illegal.
4- Was the time given to exchange the old notes sufficient or not?
Justice Gavai: While giving the verdict of the Supreme Court, Justice Gavai said that it cannot be said in any way that 52 days were not right to exchange old notes.
Justice Nagaratna: He did not give any comment on this.
5- Does RBI have independent power in cases of demonetisation or not?
Justice Gavai: The demonetisation process was correct. Government and RBI have decided on this after discussions.
Justice Nagaratna: This decision with serious economic implications should have been placed before an expert committee, discussed in Parliament. RBI did not independently decide on this. In this matter opinion was sought only from the Reserve Bank.
6- From whose side should the proposal for demonetisation come?
Justice Gavai: We should not go into from whose side the proposal came, because the government or the parliament has the power to regulate the currency. That’s why the government can also give a proposal.
Justice Nagaratna: The proposal for demonetisation should have come from the Central Board of RBI.
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