The Supreme Court on Monday dismissed the pleas challenging the 2016 demonetisation, upholding the Centre’s decision to demonetise the currency notes of 500 rupees and 1000 rupees denominations, reported Deccan Herald.
The five-judge bench held that demonetisation cannot be struck down on the grounds of proportionality.
Justice B R Gavai said that Centre’s decision-making process cannot be flawed as there was consultation between RBI and government.
“We find that the three purposes are proper purposes and there was a reasonable nexus between the objects and the means to achieve the objects. Action cannot to be struck down on the basis of the doctrine of proportionality,” Justice Gavai said, pronouncing the judgement.
The period prescribed of 52 days cannot be said to be unreasonable, the Justice said.
The arguments in the case were heard by a five-judge constitution bench of the country’s top court.
In November, 2016, PM Modi personally led the shock move to outlaw 86 per cent of the cash in circulation to target undeclared “black money” and fight corruption, reads the report.
