At last, the central government filed one more affidavit on demonetization. The central government defended demonetization in the Supreme Court. The government said that demonetization was necessary to curb terror funding and fake currency. Demonetization has emerged as an effective tool against black money and tax evaders.
The Union government tells Supreme Court that Nov, 2016 order to withdraw Rs 500 and 1,000 currency notes was an economic policy decision on the recommendation of RBI. It was also a part of larger strategy for combating the menace of fake money, terror financing, black money and tax evasion.
The Supreme Court has fixed 24 November for next hearing for demonetization petitions.
Demonetization
On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. It also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes. Prime Minister Narendra Modi claimed that the action would curtail the shadow economy, increase cashless transactions and reduce the use of illicit and counterfeit cash to fund illegal activity and terrorism.
The announcement of demonetisation was followed by prolonged cash shortages in the weeks that followed, which created significant disruption throughout the economy. People seeking to exchange their banknotes had to stand in lengthy queues, and several deaths were linked to the rush to exchange cash.
Petitions against demonetization
A Batch of petition was filed in supreme court challenging demonetization of october 2016. In the Supreme Court.
One of Mr. M. Seeni Ahamed, General Secretary of the Indian National League, also filed a public interest litigation (PIL) to scrap the decision of demonetisation Madras High Court. The High Court dismissed the PIL, stating that it could not interfere in monetary policies of the government. Similar PILs were also filed in the Supreme Court of India. In November 2017, the Supreme Court of India referred all cases related to demonetisation to constitutional bench to review the legality of the demonetisation, implementation irregularities and violation of people’s rights by limits on cash withdrawals.
Government of India’s Reply in Supreme Court
Government of India filed first affidavit on 1 December 2016, additional affidavit in October 2018. Third Time again Government filed this above affidavit and said this affidavit may read as part and Parcel of the two earlier Affidavit.
