Demonetisation Was Illegal: Justice Nagaratna Says While Disagreeing With Demonetisation Verdict
New Delhi, 2nd January 2023: The decision of demonetisation taken by the Modi government in 2016 has been given a clean chit by the Supreme Court today. The Supreme Court, while justifying the decision, said that the government has taken this decision only after a thorough discussion with the RBI (Reserve Bank of India). Meanwhile, a judge has expressed dissent in this decision pronounced by a five-judge bench. Justice BV Nagarathna termed demonetisation as illegal.
Supreme Court Justice BV Nagarathna, who delivered the dissenting judgment on demonetisation, said that the currency notes should be demonetised through law and not a gazette notification. The judge said that Parliament can not be left aloof in a matter of such vital importance.
Justice Nagaratna said the demonetisation of an entire series of currency notes by the Center is a far more serious issue which has wider implications for the country’s economy and citizens. The judge also said that from this decision, it appears that RBI has given a green signal to demonetisation in 24 hours only to accept the government’s decision in haste.
The judge said that the proposal came from the Center, whereas the opinion of the RBI was sought, and such an opinion given by the central bank cannot be treated as a ‘recommendation’ under Section 26(2) of the RBI Act. He further said that the Parliament is the base of democracy, and without it, democracy cannot flourish. Referring to the judgement, the judge said that Parliament can not be sidelined in such an important matter.
Significantly, the Supreme Court ruled with a majority of four-one, justifying demonetisation. The court, while upholding the government’s decision of demonetisation, said the decision-making process was not flawed. With this, the apex court dismissed 58 petitions challenging demonetisation.
