The Narendra Modi administration’s decision to implement demonetisation in 2016 was upheld by the Supreme Court on Monday, stating there was no flaw in the decision making process.
The top court said the Centre had the power to demonetise all series of a bank note, adding the November 8, 2016 decision can’t be said to be unreasonable nor was it hit by the doctrine of proportionality.
The top court said adequate consultation took place between the Centre and the Reserve Bank of India before the note ban decision. However, Justice BV Nagarathna differed from the majority view and rendered a dissenting judgment.
The note ban decision was considered to be arbitrary, unconstitutional, and inconsistent to the powers and procedures outlined in the Reserve Bank of India Act. On December 7, the bench had reserved its ruling after hearing lengthy arguments from the government and the petitioners.
The note ban decision was considered to be arbitrary, unconstitutional, and inconsistent to the powers and procedures outlined in the Reserve Bank of India Act