'Demonetisation was well-planned with...': Centre makes BIG STATEMENT in Supreme Court

New Delhi: Defending the move in the Supreme Court, the Central Government said in the affidavit that the 2016 demonetistaion policy was an important step to combat the menace of fake currency, terror funding, black money, and tax evasion. It further stated that it was a well-considered decision and was taken after extensive consultation with RBI.

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The Centre began consulations with the Reserve Bank of India (RBI) in February 2016, at least eight months before implementing demonetisation on November 8, 2016. it further said in the affidavit.

No one can forget demonetisation. The event had shaken up everyone’s life, some of whom had borne the long-term impact of it. The words of PM Narendra Modi still echoes in mind when he had declared the notes of Rs 500 and 1000 ‘illegal tender’ with the effect of midnight September 8. 2016. The Centre has always reiterated since then that demonetisation was a good move to let remove of black money and counterfeiting.

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It is to be noted that a Constitution Bench of the Supreme Court in October said it was aware of the “Lakshman Rekha” that it should keep in relation to the government policy matter, however, it would examine the manner in which the 2016 demonetisation exercise was carried out.

When the legal hearing for Demonetisation started?

Demonetisation was first challenged by advocate Vivek Narayan Sharma on November 9, 2016 regarding the constitutionality of the scheme and the manner with which it was implemented. A three-judge bench had put stayed on all hearings related to demonetisation in high courts and transferred the matter to the Supreme Court and referred to a five-judge Constitution bench.

Since then, the Centre has provided three affidavit in the Supreme Court in relation to demonetistaion.