Supreme Court reserves verdict on plea challenging demonetisation

New Delhi, December 7

The Supreme Court on Wednesday directed the Centre and the Reserve Bank of India (RBI) to furnish records relating to the November 8, 2016, decision to demonetise currency notes of Rs 1,000 and Rs 500 denomination.

“Learned counsel for the Union of India and Reserve Bank of India are directed to produce the relevant records,” a five-judge Constitution Bench led by Justice S Abdul Nazeer said while reserving its verdict. Attorney General R Venkataramani told the Bench that he would submit the relevant records in a sealed cover.

The Bench — which also included Justice BR Gavai, Justice AS Bopanna, Justice V Ramasubramanian, and Justice BV Nagarathna —heard arguments from the Attorney General for the Centre, senior counsel Jaideep Gupta for the RBI and senior advocates P Chidambaram, Shyam Divan and others for the 58 petitioners. It allowed the petitioners and the government to file written submissions by December 10.

The Centre defended demonetisation, saying it was a major step to fight “the menace of fake currency notes, storage of unaccounted wealth, and financing of subversive activities”. In an affidavit filed in response to petitions challenging demonetisation, the Ministry of Finance said it was not a “standalone or isolated economic policy action”.

However, asserting its power of judicial review, the Supreme Court had on Tuesday said it would not be a silent spectator and sit quietly with folded hands only because demonetisation was an economic policy decision.

“We can always examine the manner in which the decision was taken,” Justice Nagarathna had said.