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Demonetisation bill introduced in Lok Sabha amid TMC opposition

The Specified Bank Notes (Cessation of Liabilities) Bill, 2017, seeks to replace the ordinance on demonetisation promulgated by the government in December, 2016.

india Updated: Feb 03, 2017 15:04 IST
IANS, New Delhi
Demonetisation,Demonetisation bill,Lok Sabha
Union finance minister Arun Jaitley.(PTI photo)

Finance minister Arun Jaitley on Friday introduced a bill on demonetisation in the Lok Sabha to formally make the banning of Rs 500 and Rs 1,000 notes a law.

The Specified Bank Notes (Cessation of Liabilities) Bill, 2017, seeks to replace the ordinance on demonetisation promulgated by the government in December, 2016.

As the finance minister stood up to introduce the bill, he was opposed by Trinamool Congress member Saugata Roy, who termed the bill “illegal”.

Read: Demonetisation: Govt says RBI may lift limits on ATM cash withdrawal soon

A war of words was witnessed in the House as Jaitley and the Trinamool Congress leader attacked each other over the issue.

Roy said he was questioning Jaitley’s “right to speak”, adding, “Let him go to the Rajya Sabha and speak”.

In response, the minister questioned the member’s right to oppose the bill and said: “His objection is something other than legislative competence. His objection is this is not a good bill.”

Roy said: “He (Jaitley) is not even a member of this house. He is not aware of the rules of the House.”

Parliamentary affairs minister Ananth Kumar defended Jaitley and said: “He (Jaitley) has been a distinguished parliamentarian, and has also been adjudged best parliamentarian. He is well within his knowledge of both houses.”

Roy then said the question of legislative competence will arise later and that any member has the right to object to introduction of a bill.

“This bill is actually illegal because the basic statement by the Prime Minister (on demonetisation), without any notification on November 8 was illegal. No reference was made to the Parliament...” Roy said.

“The Reserve Bank writes on currency notes ‘I promise to pay the bearer...’ The notification (on demonetisation) should have been given by the Reserve Bank of India... I think it is outside the minister’s competence, and legislative competence to bring this bill,” the Trinamool member added.

“This bill, and the ordinance are illegal. The government has imposed a disruptive step on the whole country’s economy. I am told even the finance minister did not know about the demonetisation move till the evening before. I oppose introduction of this bill,” Roy said.

Jaitley, however, said the member was wrong on several accounts. “A bill can be opposed only on two grounds -- that the House does not have legislative competence or it is unconstitutional. His objection is not on either grounds.”

He said the government was well within its right in bringing in demonetisation. “The November 8 notification was under Section 26-2... RBI had the competence to pass the order.”

He also took a dig at the Trinamool Congress member and said: “It will add to his long parliamentary experience; He will get to learn.”

Roy’s objection was overruled by speaker Sumitra Mahajan, and the bill was then introduced in the lower House.

First Published: Feb 03, 2017 15:04 IST