Supreme Court refuses to stay ban on Rs 500, Rs 1000 notes

TNN & Agencies |  Nov 15, 2016, NEW DELHI: The Supreme Court on Tuesday refused to stay the Modi government's notification demonetizing Rs 500 and Rs 1,000 currency notesbut asked the Centre to file an affidavit giving details of steps taken to ease inconvenience faced by citizensdue to long queues at banks and ATMs.

"We will not be granting any stay," a bench comprising Chief Justice T S Thakur and D Y Chandrachud said hearing a batch of pleas against demonetization. The remarks were made after some advocates insisted on a stay.

Senior advocate Kapil Sibal, appearing for one of the petitioners, however, said he was not asking for a stay on the notification but seeking answers from the government about the steps taken to remove public inconvenience.

The bench asked Attorney General Mukul Rohatgi to file an affidavit about the measures already undertaken by the government and the RBI to minimise public inconvenience and also the steps likely to be undertaken in future.

Without issuing any notice to the Centre or the RBI, the bench posted the matter for further hearing on November 25.

Attorney general Mukul Rohatgi said the government estimates black money size to be Rs 15-16 lakh crore and it expects people to deposit Rs 10-11 lakh crore in banks. "Rest Rs 4-5 lakh crore were being used in northeast and J&K to fuel trouble in India. That will be neutralised," he said. Rohatgi said the real purpose of the Centre is to force those who have hoarded cash at home to deposit in bank and explain the source of money.

The Prime Minister, in a televised address to the nation, had declared that high denomination notes of Rs 500 and Rs 1000 will no longer be legal tender from November 8-9 midnight. He had said the government has declared a "decisive war" against black money and corruption. 

ENS, New Delhi, November 15, 2016: The Supreme Court on Tuesday directed the Central government to take steps to ensure that the common man was not burdened by its decision to discontinue old Rs 500 and 1000 notes. “Discontinuing of higher denomination notes appears to be carpet bombing and not surgical strike,” the bench said.

The Apex Court was hearing a clutch of petitions demanding the roll back of the government’s decision to scrap the old notes. The bench asked the government to file an affidavit to justify its notification and the steps it has taken to ensure people have enough liquidity. Refusing to stay the government’s move for the time being, the court said that it will examine the legal validity of the notification and then take a decision. The bench also said that not everyone who had Rs 500 and 1000 notes “can be painted as a black money hoarder”.

Attorney General Mukul Rohatgi informed the bench that Rs 3.25 lakh crore were deposited in the banks since November 10 and Rs 11 lakh crore would be added in the next few days. The hearing has been adjourned to November 25.

Meanwhile, Economics Affairs Secretary Shaktikanta Das addressed the media on Tuesday and said banks will be using indelible ink to track unscrupulous people who are making multiple visits to the bank counters.