New Delhi: The Delhi High Court on Monday dismissed a plea challenging the notification to exchange Rs 2,000 denomination notes without any demand slip and ID proof, saying it was done to avoid inconvenience to citizens and the court Can’t sit as one. Appellate authority on policy decisions. The High Court said that it cannot be said that the decision of the government is perverse or arbitrary or that it promotes black money, money laundering, profiteering or promotes corruption.
A bench of Chief Justice Satish Chandra Sharma and Justice Subramaniam Prasad said it was purely a policy decision of the government and courts should not sit as an appellate authority on the decision taken by the government. The High Court held that the Public Interest Litigation (PIL) was devoid of merit and dismissed the plea filed by advocate Ashwini Kumar Upadhyay, who challenged the decision of RBI and SBI to enable exchange of Rs 2,000 notes without demand slip and identity proof. challenged the notification.
The petitioner had claimed that a large amount of currency notes have either reached the lockers of individuals or were hoarded by separatists, terrorists, Maoists, drug smugglers, mining mafia and corrupt people. The petition states that the notifications are arbitrary, irrational and violate Article 14 (equality before law) of the Constitution.
The Reserve Bank of India (RBI) defended its notification before the High Court, saying it was not demonetisation but a statutory exercise. It said the decision to allow exchange of currency notes of Rs 2,000 denomination was taken for operational convenience and the court cannot interfere in such matters. Upadhyay had clarified that he was not challenging the decision to withdraw Rs 2,000 banknotes, but was alleging exchange of notes without any slip or identity proof.
On 19 May, the RBI had announced the withdrawal of Rs 2,000 notes from circulation, and said that the existing notes in circulation could either be deposited in bank accounts or exchanged till 30 September. However, banknotes in the denomination of Rs 2,000 will continue to be issued. a legal tender, the RBI had said in a statement.
The High Court said in its judgment that the government’s decision to withdraw only Rs 2,000 denomination bank notes from circulation has achieved the objective of issuing these notes, which is to meet the currency requirement of the economy quickly. Was. In November 2016, when all Rs 500 and Rs 1,000 denomination banknotes ceased to be legal tender.
To deal with the situation at that time, the government decided to introduce Rs 2,000 denomination notes to ensure adequate supply of money to meet the day-to-day requirements of the people. “After six years of the said decision, the Government has now decided to withdraw from circulation Rs 2,000 denomination bank notes, which are not being commonly used. Rs 2,000 bank notes will continue to be legal tender and this policy Only for exchange of banknotes of denomination Rs 2,000 with other banknotes of…. To facilitate the exchange of banknotes of denomination Rs 2,000 with banknotes of other denominations, the government gave citizens four months and to avoid inconvenience to the citizens, the Government is not insisting on giving any kind of identification,” the High Court said.
It is said to ensure that there is a smooth transition, banks have provided the facility to convert these bank notes into bank notes of other denominations till September 2023. The High Court noted that it was not a case of demonetisation but withdrawal of currency notes of Rs 2,000 denomination from circulation. “For this purpose, the Government has decided not to insist on the requirement of identity proof for exchange of Rs 2,000 denomination bank notes, so that everyone can exchange the same with notes of other denominations. Therefore, it will not It can be said that this decision of the government is perverse or arbitrary or it promotes black money, money laundering, profiteering or it promotes corruption.
The petition states that cash transactions in high value currency are the main source of corruption and are used for illegal activities like terrorism, naxalism, separatism, radicalism, gambling, smuggling, money laundering, kidnapping, extortion, bribery and dowry. And RBI and SBI should ensure that Rs 2,000 notes are deposited in bank accounts only.
“Recently, it was announced by the Center that every household should have an Aadhaar card and a bank account. Hence, why is RBI allowing Rs 2,000 notes to be exchanged without obtaining identity proof.”
“It is also necessary to state that 80 crore BPL (below poverty line) families get free food grains. This means that 80 crore Indians rarely use the Rs 2,000 banknote. Therefore, the petitioner RBI and SBI Also seeks directions to take steps to ensure that Rs 2,000 banknotes are deposited only in bank accounts,” the petition said.
The petition states that depositing Rs 2,000 notes in bank accounts will ensure that people who have black money and assets disproportionate to their legal sources of income can be easily identified. In order to ensure operational convenience and avoid disruption of routine activities of bank branches, RBI has said that Rs 2,000 banknotes can be exchanged for banknotes of other denominations in any bank to the extent of Rs 20,000 at a time . From 23 May.
State Bank of India (SBI) has informed in a letter to the Chief General Managers of all its local head offices that the facility of exchange of Rs 2,000 notes by the public to the extent of Rs 20,000 at a time will be allowed without receiving any. requisition slip.