2016 demonetisation decision valid, rules SC in 4-1 judgment
2016 demonetisation decision valid, rules SC in 4-1 judgment
A five-judge Constitution bench of the Supreme Court, by a 4-1 majority, validated the controversial November 8, 2016, decision of the Union government to demonetise currency notes of Rs 500 and Rs 1,000 denomination and rejected lock, stock and barrel the challenge by 58 petitions to the demonetisation decision-making process, saying it was “flawless”.
The majority judgment, authored by Justice BR Gavai on behalf of himself and Justices SA Nazeer, AS Bopanna and V Ramasubramanian, said the hardships faced by citizens following demonetisation six years ago cannot be a ground to reverse the decision.
On creating a fresh window for return of demonetised currency, the majority verdict said it did not have the expertise to “frame such a scheme”.
Ploughing a lone furrow, Justice BV Nagarathna said though the objective of demonetisation was noble and aimed to achieve economic health and stability by targeting fake currencies, terror funding and black money, the process adopted by the Union government was illegal. She quashed both the 2016 ordinance as well as Parliament-enacted Specified Bank Notes (Cessation of Liabilities) Act, 2017.
