Supreme Court to give verdict on demonetisation today, 58 petitioners await decision

New Delhi: Demonetization in 2016 took a toll on the economy of India and turned out to be a nightmare for many. As a result, many people filed a petition against the decision which argued that it was not a ‘considered’ decision of the government and should be struck down. Today, on January 2, 2023, the Supreme court is likely to give its verdict on the petition challenging the decision to ban Rs 500 and Rs 1,000 currency notes. This decision took a toll on India’s economy. A five-judge Constitution bench headed by Justice S A Nazeer heard a batch of 58 petitions challenging the demonetisation exercise in 2022. 

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Here's what we know so far against the government's decision on demonetisation:

- Demonetisation created a lot of confusion and chaos across country and as a result, fifty-eight petitions were filed in the Supreme Court challenging the notes ban, arguing that it was not a 'considered' decision of the government and court should put it down.

- The government, however has argued that the court cannot decide a matter when no tangible relief can be granted. It would be like "putting the clock back" or "unscrambling a scrambled egg", the centre said.

- A five-judge Constitution bench headed by Justice SA Nazeer heard the arguments before its winter break and on December 7, suspended the verdict. 

- In its defense, the centre said the demonetisation was a "well-considered" decision and part of a larger strategy. They further stated that this decision was taken to combat the menace of fake money, terror financing, black money, and tax evasion.

- Former Union Minister and senior advocate P Chidambaram argued that the centre has not examined alternate methods to control fake currency or black money.

- The government, he said, cannot initiate any proposal on legal tender on its own. This, he said, can only be done on the recommendation of the central board of the Reserve Bank of India (RBI).

- As per reports, the centre was also withholding crucial documents on the decision-making process, including its letter to the Reserve Bank dated November 7 and the minutes of the meeting of the bank's central board, Chidambaram argued.

- When the bank's counsel argued that judicial review cannot apply to economic policy decisions, the court said the judiciary cannot fold its hands and sit just because it is an economic policy decision.

- RBI's view on note ban: The RBI admitted that there were "temporary hardships" which are part of the nation-building process. 

- The opposition parties alleges that the demonetisation was a failure of the government, destroying businesses and ending jobs. Congress chief Mallikarjun Kharge said, "Six years after the 'masterstroke' the cash available in public is 72 percent higher than that in 2016. PM (Narendra Modi) is yet to acknowledge this epic failure that led to fall of the economy."