NEW DELHI: The Supreme Court, on Monday, rejected petitions challenging the 2016 demonetisation decision of the BJP government at the Centre.
The central government in 2016 had demonetise the currency notes of Rs 500 and Rs 1000 denominations.
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A five-judge Constitution bench of the Supreme Court, on Monday, dismissed a batch of petitions challenging the decision of the central government of demonetisation.
The judgement was passed by the Supreme Court with a 4:1 majority.
The Supreme Court, while dismissing the petitions, said that the central government’s decision cannot be reversed as it was an executive’s economic policy.
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The bench, headed by Justice SA Nazeer, said the Centre’s decision-making process could not have been flawed as there was consultation between the Reserve Bank of India (RBI) and the central government.
Supreme Court accepted the government’s views that there was consultation between the Centre and the RBI before demonetisation.
Justice Nagarathna, however, differed from the majority judgment on the point of the Centre’s powers under section 26(2) of the RBI Act.
“Parliament should have discussed the law on demonetisation, the process should not have been done through a gazette notification. Parliament cannot be left aloof on an issue of such critical importance for the country,” Justice Nagarathna said.
Nagarathna called demonetisation as “an exercise of power, contrary to law, and therefore unlawful”.
She, however, did not question the Centre’s “best intention” as she called the move “well-intentioned and well thought of”.
“The measure has been regarded as unlawful only on a purely legal analysis, and not on the objects of demonetisation,” she added.
Meanwhile, former union finance minister and Congress leader P Chidambaram has accepted the Supreme Court’s decision on demonetisation as he is “obliged to accept it”.
However, he said that there are a few things that are “necessary to point out”.
“It is necessary to point out that the majority has not upheld the wisdom of the decision; nor has the majority concluded that the stated objectives were achieved. In fact, the majority has steered clear of the question whether the objectives were achieved at all,” P Chidambaram tweeted.
“We are happy that the minority judgement has pointed out the illegality and the irregularities in the Demonetisation. It may be only a slap on the wrist of the government, but a welcome slap on the wrist,” he said.
“The dissenting judgement will rank among the famous dissents recorded in the history of the Hon’ble Supreme Court,” he added.