07 February Tuesday

Procedures Behind Demonetisation Secretive; Hearing In Progress Before SC Constitutional Bench

CorrespondentUpdated: Friday Nov 25, 2022

New Delhi :Petitioners in the Supreme Court alleged that procedural steps prior to ban on big notes in 2016, has remained a mystery. A batch of 58 petitions challenged the legitimacy of steps the government invoked in this regard. 

The Central government announced demonetising of notes in a decision that took barely 26 hours for it to come upon, the lawyer appearing for the petitioners, P Chidambaram pointed out to court. The case is being heard by  a 5-judge Constitution Bench headed by Justice Abdul Naseer,

 After hearing on the 12th of October, the Bench directed the Centre to submit records related to procedural steps taken with regard to demonetisation.

The Reserve Bank of India received letter indicating the demonetisation of notes after noon of 7th October in 2016. Following this the apex bank convened its Central Board  meeting and handed its recommendations to the government, Chidambaram told the court, stressing  that, neither the Central Board of the RBI nor the Union ministers had any clue to the procedures involved.

There was absolute no clue of banning 86 percent of currency in the country. The Centre kept the records of procedures involved a total secret. The Centre’s letter to has never been revealed to-date. And, neither agenda   of holding  a discussion in this regard nor any minutes to the effect has ever been made available, the lawyer said.