Note ban illegal, RBI didn’t take any decision autonomously, everything happened as per government’s wish: Justice Nagaratna


The Supreme Courtroom has given its verdict on all of the petitions filed concerning demonetisation. A five-judge structure bench of the Supreme Courtroom, by a majority, has declared the choice to demonetise Rs 500 and Rs 1,000 notes legitimate in 2016. However on this, questions have additionally been raised on the central authorities concerning the choice of demonetisation. Justice Nagaratna gave a separate judgment dissenting from the bulk view. Justice Nagaratna differed with the bulk resolution on the difficulty of powers of the Central Authorities beneath Section 26(2) of the RBI Act.

‘Demonetisation resolution unlawful’

Justice BV Nagaratna has termed demonetisation as unlawful. He mentioned that the central authorities’s resolution of demonetisation on November 8 was unlawful. Justice Nagaratna mentioned that the federal government’s one-shot resolution to demonetise all collection of Rs 500 and Rs 1000 notes is a really severe matter.

‘RBI didn’t take any resolution autonomously’

Justice Nagaratna has additionally questioned the way by which demonetisation was introduced by the Modi authorities. He mentioned that the choice of demonetisation ought to have been made via a invoice and never via a notification by the central authorities. The Supreme Courtroom Justice mentioned that earlier than taking such an enormous resolution, it ought to have been positioned earlier than the Parliament. Not solely this, he mentioned that the data introduced by the Reserve Financial institution of India (RBI) present that the RBI didn’t take any resolution autonomously, however the whole lot occurred as per the needs of the Central Authorities. The choice of demonetisation was taken in simply 24 hours.

‘All collection of foreign money can’t be banned’

Justice Nagaratna additionally mentioned that the recommendation given by the Reserve Financial institution on the proposal of the Central Authorities can’t be thought of as a suggestion given in accordance with the regulation. In keeping with the powers given to RBI within the regulation, all collection of any foreign money can’t be banned as a result of beneath part 26(2) any collection doesn’t imply all collection.

Cleanliness of the central authorities within the Supreme Courtroom

On the similar time, in the course of the listening to, the Central Authorities advised the Supreme Courtroom that the choice to withdraw Rs 500 and Rs 1,000 notes in November 2016 was one of many essential steps within the collection of transformative financial coverage steps and the choice was taken after in depth consultations with the RBI. was taken after

The Finance Ministry mentioned in an affidavit that demonetisation was a properly thought out resolution. This was taken after in depth session and advance preparations with RBI. The ministry mentioned demonetisation was half of a bigger technique to fight the menace of counterfeit foreign money, terrorism financing, black cash and tax evasion.

With inputs from IANS

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