New Delhi: The Supreme Court upheld the decision of the Central government taken in 2016 to demonetise the currency notes of Rs 1,000 and Rs 500 denominations. A five-judge Constitution bench, headed by Justice S A Nazeer, said the decision-making process could not have been flawed as there was consultation between the Reserve Bank of India (RBI) and the Union government on demonetisation.
Justice BV Nagarathna, in her minority verdict, held that demonetisation of Rs 500 and Rs 1,000 currency notes was vitiated, unlawful. The bench assembled for verdict on demonetisation on Monday. The top court’s judgment came on a batch of 58 petitions challenging the demonetisation exercise announced by the Centre on November 8, 2016.The court said the 2016 notification, which announced the decision to scrap the high-value currency notes, cannot be said to be unreasonable and cannot be struck down on the ground of decision-making process. The apex court said it is not relevant whether the objective behind the decision was achieved or not.
“The notification dated November 8, 2016 valid, satisfies test of proportionality,” the bench, also comprising justices B R Gavai, A S Bopanna, and V Ramasubramanian, said. Justice Nagarathna differed from the majority judgment on the point of the Centre’s powers under section 26(2) of the RBI Act.
