The Supreme Court has pronounced the judgment on the petitions challenging demonetisation today, six years after the government's policy.
A Constitution Bench ruled on the validity of the decision taken by the Union Government six years ago to demonetise the currency notes of Rs. 500 and Rs.1000 denominations.
The 5-judge bench comprising Justices S Abdul Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian and BV Nagarathna had reserved the judgment on December 7, 2022.
The judgment was pronounced by Justice BR Gavai.
Petitioners
Over 50 petitions were submitted challenging the 2016 policy (Vivek Narayan Sharma v. Union of India and Others).
Former finance minister and senior advocate P Chidambaram slammed the government's 2016 demonetisation policy, telling the Supreme Court that the process was deeply flawed and should be overturned.
Calling it the most outrageous decision-making process, Chidambaram submitted that the process wasn’t in accordance with the RBI Act and made a mockery of the rule of law of this country.
P Chidambaram said that any power of the Government to demonetise is only on recommendation of the Central Board but there was a reversal of procedure in the present case.
Chidambaram said that the currency being RBI’s matter, the process can’t be reversed to centre advising to RBI and RBI submitted to centre’s advice and gave its recommendation after a one-hour meeting in one day.
Allegations on State
Chidambaram alleged that the Centre was withholding crucial documents regarding the decision-making process, including the letter from the Govt to the RBI dated Nov 7 and the minutes of the meeting of the central board.
Chidambaram said that demonetisation action led to the withdrawal of 86.4 per cent currency and it is an informed guess that this information wasn’t even with the RBI board.
