Demonetisation: Why no window to deposit banned notes after December 31, Supreme Court asks Centre

[Kool_SRG]

The Supreme Court has sought the Centre and the RBI's response on why they did not give a window to citizens to deposit demonetised currency after December 31. 

 

 

The Supreme Court has sought the Centre and the RBI's response on why they did not give a window to citizens to deposit demonetised currency after December 31.

The apex court bench, headed by Chief Justice Jagdish Singh Khekar, gave the Central government and the Reserve Bank of India two weeks' time to reply to the notice.

 

HERE IS ALL YOU NEED TO KNOW ABOUT WHAT SUPREME COURT SAID:

1. 1)The Supreme Court's notice to the Centre and the RBI came on a petition filed by one Sudha Mishra who claimed that people are not allowed to deposit their old currency notes at the central bank despite Narendra Modi government's promise.
2. 2)The Supreme Court asked Centre why it chose not to give a window to citizens to deposit demonetised currency after December 31.
3. 3)The apex court said that Prime Minister Narendra Modi in his November 8 speech had said that those facing genuine difficulty in depositing demonetised notes by December 31 would get a chance to deposit them till March 31.
4. 4)The Supreme Court said that the Prime Minister's speech gave hopes to people that those who missed the December 31 deadline could deposit their old notes by March 31 once they have explained their difficulty.
5. 5)The Supreme Court while fixing the next date of hearing as April 11 also asked the petitioner if she was in India or outside before December 31.
6. 6)"Why did you not exercise the option of opening another window (provided under law). You may have 20 reasons," the Supreme Court bench asked Attorney General Mukul Rohatgi after the AG told the court that Parliament had given the option to government but it chose not to exercise it. "I (government) didn't think it appropriate to exercise the option," the Attorney General told the court.

[Kool_SRG]

SC pulls up Modi govt on demonetisation: Why did you stop deposit after Dec 31?

The Supreme Court asked the Centre on Tuesday why it did not give time to people who could not deposit demonetised 500 and 1,000-rupee banknotes before December 31 if their inability to do so was genuine.

A bench headed by chief justice JS Khehar referred to the Prime Minister’s November 8 speech and said there was a promise that those with difficulty to deposit demonetised notes will get chance till March 31.

“You may have a discretion, but it cannot be an arbitrary exercise. From your submission it seems that you are the final and we are not willing to accept it,” the bench told attorney general Mukul Rohatgi who said Parliament had left the government with the choice to define the class that could avail the window.

The court was hearing petitions challenging the government’s decision to deny them time beyond December 31 to deposit old notes with RBI-designated banks. An ordinance made possession of outdated currency a criminal offence and those with such notes can be prosecuted.

Modi’s shock announcement had led to a rush in banks by people and business houses to exchange the old notes, besides sparking a crippling currency shortage. The government described the exercise a surgical strike on black money.

The opposition had, however, accused the government of faulty implementation leading to people sufferings from the cash crunch.

“Parliament asked us to find the category and we have done so by keeping the window open for NRIs,” Rohatgi told the court.

The court, however, did not appreciate the government’s move to issue the ordinance on December 30, without any notice that the window was closed.

“If the ordinance had come a week before, people would have got time. Everybody knew from the PM’s speech and the notification that there would be some more time. Nobody realised the PM’s words can be taken back,” the CJI remarked, giving time till April 11 to the government to file its affidavit.

“You must explain why the window was given only to NRIs and not (other) citizens,” the bench said. It had a word of caution for the petitioners who were warned of facing criminal case if they lost the case.

However, Rohatgi offered a window to them and said the petitioners would not be prosecuted if they withdrew their pleas.