Demonetisation verdict – SC rejects pleas challenging govt’s 2016 note ban decision: Key points | India News

NEW DELHI: A 5-judge Constitution bench of the Supreme Court on Monday upheld the validity of Centre’s November 2016 decision to demonetise Rs 500 and Rs 1000 currency notes.
A five-judge constitution bench headed by Justice S.A. Nazeer and comprising Justices B.R. Gavai, A.S. Bopanna, V. Ramasubramanian, and B.V. Nagarathna pronounced the judgment on a clutch of petitions challenging the Centre’s 2016 decision to demonetise currency notes of Rs 1,000 and Rs 500 denominations.
Pronouncing the majority judgment, Justice Gavai said that the decision-making process cannot be faulted merely because the proposal emanated from the Central government.

We hold that there was a reasonable nexus to bring such a measure, and we hold that demonetisation was not hit by the doctrine of proportionality

Majority judgment

Here are the key points of the judgment:

  • A five-judge Constitution bench of the apex court, headed by Justice S A Nazeer, said the Centre’s decision-making process could not have been flawed as there was consultation between the Reserve Bank of India (RBI) and the Union government for a period of six months.
  • The court said the notification dated November 8, 2016, which announced the decision to scrap the high-value currency notes, cannot be said to be unreasonable and struck down on the ground of decision-making process.
  • The apex court said it is not relevant whether the objective behind the decision was achieved or not.
  • “The notification dated November 8, 2016 valid, satisfies test of proportionality,” the bench, also comprising justices B R Gavai, A S Bopanna, V Ramasubramanian and B V Nagarathna, said.
  • Justice Nagarathna differed from the majority judgment on the point of the Centre’s powers under section 26(2) of the RBI Act.

Watch Supreme Court upholds demonetisation, rejects pleas challenging Govt’s 2016 decision

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