 "Delhi High Court to hear plea against demonetisation tomorrow")
Monday's petition challenges the November 8 demonetisation of old 500-rupee and 1,000-rupee notes, as violative of provisions of the Reserve Bank of India Act 1934. "Till date, the government has not issued any notification under Section 24 (2) of the RBI Act for discontinuing currency notes of Rs 500 and Rs 1,000," the petition states.
It further states that 2,000-rupee notes are also being circulated by the government against the mandate of Section 24(1) of the Act. The plea calls the demonetisation move as arbitrary and unconstitutional and questions how such old notes can still be accepted at public utilities, hospitals and petrol pumps even after their invalidation.
Section 24 of the RBI Act deals with denominations of currency and states that bank notes shall be of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 500, Rs 1000, Rs 5000 and Rs 10,000. Any other denominations (not above Rs 10,000), may be issued by the government only after the recommendation of the Central Board of the RBI. The section also says that the Centre may, on the recommendation of the Central Board, direct the discontinuance of existing bank notes, as may be specified.
The petitioner has further alleged that the government cannot misuse provisions of the Income Tax Act 1961 and prosecute individuals under the pretext of exchanging old currency notes and urges the court to quash the various notifications issued in this regard.
The bench of Justices Badar Durrez Ahmed and Jayant Nath will now hear the matter on Tuesday.