JOIN USThe Supreme Court on Tuesday turned down a plea seeking a stay on the Centre’s November 8 notification demonetising Rs 500 and Rs 1,000 notes.
However, it advised the government to pay heed to the grievances of citizens. The objective of tackling black money and fake currency may be laudable but not everyone holding old currency can be treated as a hoarder of black money, a bench comprising Chief Justice T S Thakur and Justice D Y Chandrachud said.
“It has become traumatic for people to go and stand in queues to get their own money. This could be money which is properly taxed and is in their own bank accounts. The common man should not be made to suffer,” the bench said.
Collateral damage
Senior advocate Kapil Sibal, appearing for one of the four PIL petitioners, said he was not for a stay on the notification. The bench concurred with Attorney-General Mukul Rohatgi's observation that some collateral damage was unavoidable in a surgical strike against black money.
“The situation is more like carpet bombing than a surgical strike, since everyone is affected,” the bench said.
Hearing the PILs challenging the validity of the notification, the bench asked the government to submit by November 25 a comprehensive affidavit stating the legal validity of its orders and explaining measures taken to address people’s concerns.
The court agreed with the Attorney-General's assertion that demonetisation was an economic policy decision.
However, it emphasised that the government should ensure that daily wage workers, carpenters, vegetable vendors and people doing menial jobs for a living were not affected.
“There is a general feeling that inconvenience has been caused to people who may have nothing to do with black money. Those standing in long queues are not the ones you want to target for black money. For the present, we are only wondering if you can do something to reduce their suffering. We may understand your objective behind these notifications but instead of forcing the common man to stand in queues for hours, why don't you raise the limit of money?” the bench asked the Attorney-General.
Steps to ease pain
Rohatgi submitted the government was ramping up the process and bringing out new notifications.
“If we increase the cash withdrawal limit, it will cause more inconvenience,” he said, agreeing to take steps to ease hardship.
Sibal, for his part, contended, “We support all endeavour to curb black money but not every Rs 500 and Rs 1000 note can be treated as black money. One can have legitimate currency in cash too. It is my tax-paid money and a bank is only a trustee. How can I be stopped from withdrawing my own money? People cannot buy rations. They cannot get proper treatment. What kind of reasonableness is this where you are jeopardising lives of people?”
DH News Service
‘All will not be well in 50 days’
CPM general secretary Sitaram Yechury on Tuesday said that the government will not be able to solve the problem of cash crunch in 50 days, DHNS reports from New Delhi.
He said that 2,300 crore notes are needed to maintain current levels and the RBI is currently printing 40 lakh Rs 500 notes a day.
“So, how will all be well in 50 days?" Yechury asked on Twitter. In a Facebook post, he said that the prime minister gave a few aims for demonetisation.
“First, the black economy: Black economy is only 6% in cash, the rest of the black economy is wired. Demonetisation will barely make a dent, as former RBI governor Raghuram Rajan had explained when he was the governor,” Yechury says.
“Second, official estimates for counterfeit currency are that it is only 0.025% of the total currency in circulation. The new currency notes, moreover, have no additional security features to prevent counterfeiting. It will not make any difference,” he argues.
‘Black money helpful in recession’
Amid the raging debate on demonetisation of high value currency by the Centre, Uttar Pradesh Chief Minister Akhilesh Yadav on Tuesday said that black money, though bad for the country, helped during the times of recession, DHNS reports from Lucknow.
“We too are against black money...stern action should be taken against the offenders but some experts are of the opinion that black money had helped the country during the global recession,” Akhilesh said in an informal chat with reporters here on the sidelines of a programme.
He said the demonetisation had “deeply hurt” the common people. “The decision was taken without adequate preparations,” he added.