A public interest litigation filed in the Hyderabad High Court has sought suspension of the Union government's November 8 notification demonetising Rs 500 and Rs 1,000 notes.
K Srinivas, a lawyer, filed the petition through advocate P V Krishnaiah yesterday, challenging the section 26 (2) of the RBI Act, 1934, and sought direction declaring the notification (No. S O 3407 (E), dated November 8) issued by the government as "arbitrary, illegal and unconstitutional".
Since the notification withdrawing the high-denomination notes was issued under the RBI Act, "it has become necessary to challenge sub-section 2 of section 26 of the Act which gives arbitrary power to the government without prescribing any guidelines as to how to exercise such power," the petitioner submitted.
The Centre was implementing the notification immediately without giving sufficient time, which was arbitrary, unconstitutional, and operation of the notification should be suspended pending hearing of the petition, the PIL said.
It has affected the poor and middle-class families, said advocate Krishnaiah.
"We are requesting the court to quash the notification in final relief. Initially we are seeking to stay or suspend this notification," Krishnaiah said. The matter is likely to come up for hearing tomorrow.
Similar petitions have been filed in some other High Courts and also in the Supreme Court.
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