The Gujarat High Court today posted for December 14 the hearing on two PILs challenging the Centre's ban on transactions at District Central Cooperative Banks (DCCBs) and restricting cash withdrawals following demonetisation.
The court fixed the date after it was told that petitions of similar nature will be heard in the Supreme Court on December 9.
A division bench of Chief Justice R Subhash Reddy and Justice V M Pancholi was told by the Centre's counsel that the apex court is seized of the matter and will hear a similar set of petitions by DCCBs on Friday.
Also Read
"Two DCCBs from Kerala have challenged the ban in the SC," the counsel said and sought a date after the matter is heard in the apex court to avoid any conflicting view.
Two PILs-- one by Bhavnagar District Cooperative Bank (BDCB) and another by Gujarat Khedut Hitrakshak Samiti (GKHS) -- have challenged the legality of demonetisation as well ban on DCCBs. These PILs have sought quashing of the notification dated November 8 declaring demonetisation of currency notes of Rs 500 and Rs 1,000.
The high court had yesterday asked the RBI to reply if it has powers to impose a ban on DCCBs from exchanging defunct notes or putting restrictions on cash withdrawals by account holders in the wake of the demonetisation.
In its petition, BDCB stated that restriction on dispensing short-term loans to farmers have broken their line of finance for raising crops, due to which farmers would be ruined and they would not be able to purchase their seeds, fertilisers, pesticides, etc.
It also claimed that DCCBs should be treated on par with any other bank as per the RBI guidelines.
GKHS also raised the question on the legality of the Centre's decision to demonetise Rs 500 and Rs 1,000 currency notes, saying it cannot be carried out merely on the basis of a gazette, but an Act is required to be passed in Parliament.
Disclaimer: No Business Standard Journalist was involved in creation of this content
