NEW DELHI: The Delhi High Court on Monday dismissed a petition difficult the notifications enabling the change of Rs 2,000 denomination foreign money notes with none requisition slip and ID proof, saying it has been accomplished to keep away from inconvenience to residents, and the court docket can not sit as an appellate authority on a coverage determination. The excessive court docket maintained it can’t be mentioned that the federal government’s determination is perverse or arbitrary or it encourages black cash, cash laundering, profiteering or abets corruption.
A bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad mentioned that is purely a coverage determination of the federal government and courts shouldn’t sit as an appellate authority over the choice taken by the federal government. The excessive court docket mentioned the Public Interest Litigation (PIL) is devoid of deserves and dismissed the petition filed by advocate Ashwini Kumar Upadhyay who challenged the notifications by the RBI and SBI enabling change of Rs 2,000 banknotes with out requisition slip and id proof.
The petitioner had claimed a considerable amount of foreign money notes has reached both a person’s locker or has been hoarded by separatists, terrorists, Maoists, drug smugglers, mining mafias and corrupt folks. The plea asserted the notifications had been arbitrary, irrational and offended Article 14 of the Constitution (equality earlier than legislation).
The Reserve Bank of India (RBI) defended earlier than the excessive court docket its notification, saying it’s not demonetisation however a statutory train. It mentioned the choice was taken to permit change of Rs 2,000 denomination foreign money notes for operational comfort and the court docket can not intervene in such issues. Upadhyay had clarified that he was not difficult the choice to withdraw Rs 2,000 banknote however assailed the change of the foreign money with none slip or id proof.
On May 19, the RBI had introduced withdrawal of Rs 2,000 foreign money notes from circulation, and mentioned current notes in circulation can both be deposited in financial institution accounts or exchanged by September 30. The financial institution notes in Rs 2,000 denomination will, nevertheless, proceed to be a authorized tender, the RBI had mentioned in an announcement.
The excessive court docket, in its judgement, mentioned the federal government’s determination is just to withdraw Rs 2,000 denomination banknotes from circulation given that the aim of issuing these notes has been achieved, which was to satisfy the foreign money requirement of the financial system in an expeditious method in November, 2016 when all Rs 500 and Rs 1,000 denomination banknotes ceased to stay authorized tender.
To meet the scenario at that time of time, the federal government took a call to deliver banknotes of Rs 2,000 denomination to make sure ample provide of cash to satisfy the day-to-day necessities of the folks, it mentioned. “Six years after the said decision, the government has now decided to withdraw Rs 2,000 denomination banknotes from circulation which is not being used commonly. Banknotes of Rs 2,000 shall continue to be a legal tender and this policy is only for exchange of banknotes having denomination of Rs 2,000 with other banknotes….In order to facilitate the exchange of Rs 2,000 denomination banknotes with other denomination banknotes, the government has given a window of four months to the citizens and in order to avoid inconvenience to citizens, the government is not insisting of providing any kind of identification,” the excessive court docket mentioned.
It mentioned to make sure there’s a easy transition, banks have supplied amenities for conversion of those banknotes to different denomination banknotes until September 2023. The excessive court docket famous it’s not a case of demonetisation however withdrawal of Rs 2,000 denomination foreign money notes from circulation. “For this purpose, the government has taken a decision not to insist upon the requirement of identity proof for exchange of Rs 2,000 denominations banknotes so that everybody can exchange the same with the other denomination banknotes. Therefore, it cannot be said that the decision of the government is perverse or arbitrary or it encourages black money, money laundering, profiteering or it abets corruption,” it mentioned.
The petition mentioned money transaction in excessive worth foreign money is the principle supply of corruption and is used for unlawful actions like terrorism, naxalism, separatism, radicalism, playing, smuggling, cash laundering, kidnapping, extortion, bribing and dowry, and the RBI and SBI ought to be certain that Rs 2,000 banknotes are deposited in financial institution accounts solely.
“Recently, it was introduced by the Centre that each household ought to have an Aadhaar card and checking account. Therefore, why is the RBI allowing to change Rs 2,000 banknotes with out acquiring id proof.
“It is also necessary to state that 80 crore BPL (below poverty line) families receive free grains. It means 80 crore Indians rarely use Rs 2,000 banknotes. Therefore, petitioner also seeks direction to RBI and SBI to take steps to ensure that Rs 2,000 banknotes are deposited in bank accounts only,” the plea said.
Depositing Rs 2,000 foreign money notes in financial institution accounts will guarantee folks having black cash and belongings disproportionate to their authorized sources of revenue might be recognized simply, the plea mentioned. In order to make sure operational comfort and to keep away from disruption of normal actions of financial institution branches, the RBI has mentioned change of Rs 2,000 financial institution notes into financial institution notes of different denominations will be made as much as a restrict of Rs 20,000 at a time at any financial institution ranging from May 23.
In a communication to chief basic managers of all its native head places of work, the State Bank of India (SBI) knowledgeable that the ability of change of Rs 2,000 notes by public as much as a restrict of Rs 20,000 at a time can be allowed with out acquiring any requisition slip.
