November 30, 2022

Monopoly central government responds to demonetisation in Supreme Court. EXCLUSIVE: Demonetisation plan underway since February 2016, know Centre’s intentions?

In the Supreme Court on November 9, the Attorney General, appearing for the government on demonetisation, sought more time to file a reply. The next hearing in the matter is scheduled for November 24.

Central Govt there is Supreme Court Said that the impact of demonetisation on the economic growth rate was transitory. Citing the decade before the pandemic, the government said the growth rate was 8.2 and 6.8 in the 2016-17 and 2017-18 financial years. Which is higher than the growth rate of the previous decade (6.6 percent).

Filing an affidavit in the Supreme Court, the government said that in February 2016, the Center and the Reserve Bank of India (RBI) had planned demonetisation. It was implemented eight months later in November. The move was necessary because between 2010-11 and 2015-16, circulation of Rs 500 notes increased by 76.4 per cent and Rs 1,000 notes by 109 per cent. The increase was too high and the Supreme Court decided to constitute a Special Investigation Team (SIT) in the black money case. It was formed in 2014, after which several steps were taken.

‘Note ban is not a sudden decision’

In the affidavit, the Supreme Court was told that as per the 2011 census, the total labor force in the country is 481 million. This includes an estimated 400 million unorganized cases. This sector was completely dependent on cash. Problems of terrorist funds, fake currency, black money and tax evasion were rampant. Due to this, the RBI central board recommended to the central government to demonetise the 500 and 1000 rupee notes, which was taken after consideration. It is not a sudden decision, but step by step.

The central government said in the affidavit that arrangements were made for the common man at various levels. Digital payments were also promoted, in which there was a huge increase. It is to be noted that the Attorney General appeared on behalf of the government on November 9 and asked for more time to respond to the Supreme Court. The next hearing in the matter is scheduled for November 24. A five-judge bench headed by Justice S Abdul Nazir is doing this. The bench consists of Justice S. Abdul Nazir, Justice BR Gavai, Justice AS Bopanna, Justice V. Ramasubramanian and Justice BV Nagaratna.

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