Decision To Dispense With ₹2000 Notes Not Towards Demonetisation; Courts Should Not Sit As Appellate Authority Over Policy Decision: Delhi High Court

The Delhi High Court has observed that the Government’s decision to dispense with Rs.2000 banknotes is not a decision towards demonetisation and that the currency shall continue to remain a legal tender. “Banknotes of Rs.2000 shall continue to be a legal tender and this policy is only for exchange of banknotes having denomination of Rs.2000 with other banknotes. In order to facilitate the exchange of Rs.2000 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 court held. A division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad made the observations while dismissing the plea moved by BJP leader and Advocate Ashwini Kumar Upadhyay challenging Reserve Bank of India and State Bank of India's notifications that permit exchange of Rs. 2000 currency notes without requirement of any identity proof. The court onserbed that 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. “The decision of the Government is only to withdraw Rs.2000 denomination banknotes from circulation for the reason that the purpose of issuing these denominations has achieved its purpose which was to meet the currency requirement of the economy in an expeditious manner in November, 2016 when all Rs.500 and Rs.1000 denomination banknotes were declared to be not legal tender and in order to meet the situation at that point of time, the Government took a decision to bring banknotes of Rs.2000 denomination to ensure adequate supply of money to meet the day-to-day requirements of the people,” the court said. The bench added that the present case is not the case of demonetisation but withdrawal of Rs.2000 denomination banknotes from circulation. “For this purpose, the Government has taken a decision not to insist upon requirement of identity proof for exchange of Rs.2000 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,” the court added.Title: Ashwini Kumar Upadhyay v. Union of India & Ors.Click Here To Read Order

Decision To Dispense With ₹2000 Notes Not Towards Demonetisation; Courts Should Not Sit As Appellate Authority Over Policy Decision: Delhi High Court

Nupur Thapliyal

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