Lagatar24 Desk
New Delhi, Oct 12: The Supreme Court on Wednesday announced that it would investigate how the Narendra Modi administration decided to implement demonetization in 2016. The Centre and the Reserve Bank of India were ordered by the top court to submit thorough affidavits.
On November 9, the case will be heard by a five-judge Constitutional bench presided over by Justice SA Nazeer. The bench ruled that it is the constitution bench’s responsibility to respond when a question is brought forward.
The top court also said that it is aware of the ‘Lakshman Rekha’ on judicial review of government policy decisions, but that it must revisit the 2016 judgement on demonetisation in order to determine whether the matter has devolved into a just ‘academic’ exercise.
“We always know where the Lakshman Rekha is, but the manner in which it was done has to be examined. We have to hear the counsel to decide that,” said the bench.
A constitution bench has a responsibility to respond when a question is brought before it, according to a five-judge panel led by Justice S. A. Nazeer. Without a solid challenge to the Act on Demonetisation, according to Attorney General R Venkataramani, the matter will largely stay academic.
SC's Constitution Bench issues notice on all intervening applications & fresh petitions challenging Centre's decision to demonetize Rs 500 & 1,000 notes in 2016 & consider whether issue of demonetisation is academic. Centre & RBI seek time to file affidavits. Next hearing, Nov 9 pic.twitter.com/77sNZNeNLj
— ANI (@ANI) October 12, 2022
The High Denomination Bank Notes (Demonetization) Act was passed in 1978 to make it possible for certain high denomination bank notes to be demonetised in the public interest in order to stop the illicit money transfers that these currency notes promote.
The supreme court ruled that because neither side could come to an agreement, it was necessary to look into the situation before deciding whether the exercise was academic or futile.
Notably, the apex court was hearing a bunch of petitions challenging the demonetisation exercise when the government had scrapped Rs 500 and Rs 1,000 currency notes on October 12.
