New Delhi – The 5 Judge Bench of the Supreme Court validated the Government’s Demonetisation in 2016. Country-wide 58 petitions were filed against Demonetisation. The Bench has given a combined decision on all these petitions. The Bench has clearly said in its judgment, ‘there was nothing objectionable in the demonetisation, it is an economic decision and cannot be changed now’. The 5-judge comprising Justices S Abdul Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian, and BV Nagarathna was answering a division Bench reference. Justice BV Nagarathna gave a view different from the other 4 Judges. She held that though demonetisation was well-intentioned and well-thought-of, it was illegally done through an ordinance when it should be done through legislation. But now nothing can be done about what has happened.
As Supreme Court upholds Centre’s 2016 demonetisation decision, leaders welcome verdict https://t.co/gncBGiayhv
— Republic (@republic) January 2, 2023
1. The constitution Bench in its decision said, ‘before deciding about demonetisation the Government had discussed it with the RBI. So, it cannot be said that the decision was taken in an arbitrary manner’.
2. The Central Government giving its defense, had said that this decision was taken to solve the issue created by counterfeit currency, funds for terrorism, black money, and tax evasion. This was the greatest step towards a change in economic policy. This decision was taken only after a recommendation of RBI’s Central Executive Committee. Demonetisation reduced counterfeit currency, increase digital business, and found unaccounted income; to name a few benefits.