The Centre said on Wednesday that the scrapping of old Rs500 and Rs1,000 banknotes does not violate citizens’ fundamental rights, as alleged, but imposed “reasonable restrictions” to eradicate black money and counterfeit currency.
Submitting its second affidavit on demonetisation before the Supreme Court, the Centre rebutted the challenge on the legal validity of the November 8 notification. It was not an act of deprivation but regulation, it said.
“In the present case, the public is not deprived from using the money or the value for the legal tender possessed by them. They can still use their money by use of cheques, e-transfer, etc. The government, however, in view of the changeover of the fake notes, has for a limited period, imposed certain reasonable restrictions in the form of limited withdrawal of money and or exchange thereof,” the affidavit, to be taken up by Chief Justice of India’s bench on Friday, read.
The Centre also defended its decision to introduce Rs2,000 currency notes, saying it was done keeping in view “the erosion of purchase value of money due to rising inflation”. There was nothing illegal in the printing of the high denomination note, it said.
The Centre rejected arguments that the government has no power to demonetise as the authority is vested only with the RBI, which, it said, is under its management and control.