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SC to review Modi govt's noteban exercise, seeks affidavit from Centre, RBI
The apex court was hearing a bunch of petitions challenging the demonetisation exercise when the government had scrapped ₹500 and ₹1,000 currency notes on October 12.
The Supreme Court on Wednesday said it will look into the decision-making process behind the demonetisation exercise carried out by the Narendra Modi government in 2016. The apex court asked the Centre and the Reserve Bank of India to file detailed affidavits.
A five-judge Constitution bench headed by Justice SA Nazeer will hear the case next on November 9. The bench said when an issue arises before a constitution bench, it is its duty to answer.
The bench said that while it is aware of the "Lakshman Rekha'' on judicial review of government policy decisions, but will have to examine the 2016 demonetisation decision to decide whether the issue has become a mere "academic" exercise.
Attorney general R Venkataramani said unless the High Denomination Bank Notes (Demonetisation) Act, passed in 1978, is challenged in a proper perspective, the issue will essentially remain academic.
The SC bench, also comprising Justices BR Gavai, AS Bopanna, V Ramasubramanian, and BV Nagarathna, said in order to declare whether the exercise is academic or infructuous, it needs to examine the matter since both sides are not agreeable.
"We always know where the Lakshman Rekha is, but the manner in which it was done has to be examined. We have to hear the counsel to decide that," the bench said.
The apex court was hearing a bunch of petitions challenging the demonetisation exercise when the government had scrapped ₹500 and ₹1,000 currency notes on October 12.
Senior advocate P Chidambaram, appearing for one of the parties, said the issue has not become academic and neeit has to be decided by the top court.
He said this kind of demonetisation requires a separate act of Parliament.
