Everyone carrying Rs 500, 1000 notes is not black money hoarder: SC to govt

It asked the government to file an affidavit giving details to ease inconvenience to public

The Supreme Court on Tuesday declined to stay the demonetisation of Rs 500 and Rs 1,000 currency notes announced by Prime Minister Narendra Modi on November 8 but wanted the government to justify the drastic step through an affidavit. The court will examine its legality with reference to the provisions of the Reserve Bank Act.
 

Here are the latest developments on this issue:
 

1. The bench presided over by Chief Justice T S Thakur clarified that it did not intend to interfere in the economic policy of the government, but asked the Attorney General to file an affidavit explaining what steps the government had taken to ensure liquidity.

2. It asked the Centre to explain the steps it has taken or will take to deal with the chaos outside banks and ATMs following the demonetisation move and observed that people should not suffer.

Senior counsel Kapil Sibal said, “We are with the government incurbing the black money, but the inconvenience it is causing to the public is jeopardising their life.”

3. Everyone carrying Rs 500 or Rs 1,000 cannot be painted as a black money hoarder and will take up the case again on November 25 after government’s reply.
 

The bench said, “You (Centre) can have surgical strike against black money but you cannot have surgical strike against people of the country."
 

4. Centre had filed a 'caveat' in the court soon saying that if any petition was posted, the government should also be heard before passing any order. 
 

Attorney General Mukul Rohtagi appeared for the government justifying the step. According to him, Rs 3.25 lakh crore has been deposited in banks two days after the notification, and Rs 11 lakh crore will be added in a few days. 

5. The PIL filed challenges the provision that is sub-section 2 of section 26 of Reserve Bank of India 1934 Act claiming that there are no guidelines how to exercise the power available under the section. 
 

The petitioners had alleged that the sudden decision has created chaos and harassment to public at large and the notification of the Department of Economic Affairs, Ministry of Finance be either quashed or deferred for some time.
 

The bench said, "On recommendation of the Central Board, the Central Government may, by notification in the Gazette of India, declare that with effect from such date as may be specified in the notification, any series of bank notes of any denomination shall cease to be legal tender save at such office or agency of the bank and to such extent as may be specified in the notification."