The Supreme Court is scheduled to deliver verdict on petitions challenging the Narendra Modi-led Union government's 2016 demonetisation on January 2.
On November 8, 2016, Prime Minister Narendra Modi announced that Rs 500 and 1,000 notes would cease to be legal tender from the next day and that the Union government would roll out new Rs 500 and Rs 2,000 notes. The decision came under immense criticism as it led to long lines of people to exchange the demonetised notes with valid notes.
A five-judge Constitution bench headed by Justice SA Nazeer, who will retire on January 4, is likely to pronounce its verdict on the matter on the said date.
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Earlier on December 7, the Supreme Court directed the Union government and the Reserve Bank of India (RBI) to put on record the relevant records relating to the 2016 demonetisation decision.
The bench, also comprising Justices BR Gavai, AS Bopanna, V Ramasubramanian, and BV Nagarathna had heard the submissions of Attorney General R Venkataramani, the RBI's counsel, and the petitioners' lawyers, including Senior Advocates P Chidambaram and Shyam Divan.
Calling the scrapping of the Rs 500 and Rs 1,000 currency notes deeply flawed, Chidambaram had argued that the government cannot on its own initiate any proposal relating to legal tender, which can only be done on the recommendation of the RBI's central board.
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Resisting the apex court's attempt to revisit the 2016 demonetisation exercise, the government had said the court cannot decide a matter when no tangible relief can be granted by way of "putting the clock back" and "unscrambling a scrambled egg".
The RBI had earlier admitted in its submissions that there were "temporary hardships" and that those too are an integral part of the nation-building process, but there was a mechanism by which the problems that arose were solved.
In an affidavit, the Centre told the top court recently that the demonetisation exercise was a "well-considered" decision and part of a larger strategy to combat the menace of fake money, terror financing, black money and tax evasion.
The Supreme Court was hearing a batch of 58 petitions challenging the demonetisation exercise announced by the Centre on November 8, 2016.
(With PTI inputs)
