The Supreme Court on January 2 upheld the Centre’s decision on demonetisation, an exercise initiated by Prime Minister Narendra Modi, which followed with notes ban in the year 2016.
Backing PM Modi, the apex court said that the decision could not be faulted just because Centre initiated it.
According to the top court, the demonetisation initiative cannot be invalidated due on grounds of proportionality.
The judges stated that, "The Centre is expected to act after consulting with the Central Board of RBI and that there was a consultation between the two for six months."
The Centre's decision to outlaw the Rs 1,000 and Rs 500 currency notes in November 2016 was contested in petitions.
The action caused the overnight ban of note circulation amounting to Rs 10 lakh crore.
The notes prohibition was contested in 58 petitions submitted to the Supreme Court, which argued that the government should not have made the decision and that it should be overturned by the court.
The administration maintained that a case cannot be decided by the court if no real relief can be given. According to the centre, it would be like "turning back the clock" or "unscrambling an egg."
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