Demonetization Verdict: 6 Key Points

Demonetization Verdict: In a landmark 4-1 majority decision, the Supreme Court today backed Prime Minister Narendra Modi‘s 2016 demonetization exercise.

Demonetization Verdict Highlight:

1. The Supreme Court stated that the decision could not be criticized just because it was initiated by the center

2. According to the Supreme Court, the center is compelled to act in collaboration with the Reserve Bank of India, and there is an inbuilt safeguard.

The judges recognized that the two had been in contact for six months.

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According to the Court’s rule, whether or not the goal was met is irrelevant.

. Justice B.R. Gavai
. Justice B.R. Gavai

3. Justice B.R. Gavai, reading out the order of the five-judge Constitution bench, stated that there must be great restraint in terms of economic policy. The Court’s wisdom cannot be used to replace the executive’s wisdom.

4. In a forceful dissenting opinion, Justice BV Nagaratna declared the center’s notes ban void and illegitimate, and stated that the measure would have been carried out through an act of parliament.

5. The judge argued that the November 8th, 2016 demonetization notification was an unconstitutional exercise of power, adding that the entire process was completed in less than 24 hours.

Justice BV Nagaratna further said the problems associated with demonetization make one wonder whether the central bank had visualized disease

She said that documents and records submitted by the Center and the RBI which included phrases like as desired by the central government show that there was no independent application of Mine by the RBI

6. Approximately 58 petitions challenged the center’s decision to ban 1000 rupee and 500 rupee currency notes overnight approximately 10 lakh crore Rupees were wiped out of circulation by the move

Petitions argued that it was not a considered decision and caused immense hardships to millions of citizens who were compelled to queue up for cash

7. The Supreme Court ruled that the demonetization exercise cannot be struck down on grounds of proportionality

It added that the period of 52 days given for the exchange of notes was not unreasonable

The government too had argued that the court cannot decide on a Case when no tangible relief can be granted

The center also said that demonetization was a welcome decision and part of a larger strategy to combat the Menace of fake money Terror financing black money and tax evasion

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