Supreme Court Upholds Demonetisation, Endorses Government’s 2016 Move
The Supreme Court has ruled in favour of the Centre’s 2016 decision to demonetise currency notes of Rs 1,000 and Rs 500 denominations. The five-judge Constitution bench, headed by Justice S A Nazeer, due to retire on January 4, upheld the notification issued by the Centre on November 8, 2016. The apex court heard 58 petitions challenging the government’s move. In its ruling, the Court held that Section 26(2) of the Reserve Bank of India (RBI) Act could be used to demonetise a whole series of banknotes, not any particular series. It also concluded that the notification satisfies the test of proportionality as laid down in Article 14 and 19(1)(g) of the Indian Constitution.