To Say Demonetisation Has Been Upheld By Supreme Court Is Totally Misleading: Congress

The party's statement came in the backdrop of Supreme Court's judgement where it upheld Centre's demonetisation by a 4:1 judgment. 

Congress spokesperson Jairam Ramesh

Source : PTI

New Delhi: The Congress party on Monday said that saying Supreme Court upheld demonetisation is "totally misleading and wrong" and  highlighted one judge's statement "who said in her dissenting opinion that Parliament should not have been bypassed." The party's statement came in the backdrop of Supreme Court's judgement where it upheld Centre's demonetisation by a 4:1 judgment. 

"The Supreme Court has only pronounced on whether Section 26(2) of RBI Act, 1934 was correctly applied or not before announcing demonetisation on November 8 2016. Nothing more, nothing less. One Hon'ble Judge in her dissenting opinion has said that Parliament should not have been bypassed," said party spokesperson Jairam Ramesh. 

"To say that demonetisation has been upheld by the Honourable Supreme Court is totally misleading and wrong. One Hon’ble Judge in her dissenting opinion has said that Parliament should not have been bypassed."

-Shri @Jairam_Ramesh's statement on SC's verdict on Demonetisation. pic.twitter.com/T49ZVRx04h

— Congress (@INCIndia) January 2, 2023

Justice BV Nagarathna was the lone judge who expressed her strong dissent after a five-judge Supreme Court Constitution bench upheld the decision of the notes ban by the Centre with a 4:1 majority.

She called the November 8, 2016 notification of the Centre "unlawful" and argued that according to the Reserve Bank of India Act, the Central bank should have independently recommended demonetisation and not through the government's advice.

The government notification on demonetisation was "unlawful" and the notes ban process could not have been initiated by the Centre, justice BV Nagarathna said.

"In my considered view, the action of demonetisation by November 8 notification was unlawful. But status quo ante cannot be restored now since it was in 2016," she said. Demonetisation was "an exercise of power, contrary to law, and therefore unlawful," she further stated.

The Supreme Court on Monday rejected 58 petitions challenging the Centre's 2016 decision to demontise Rupees 500 and 1,000 currency notes saying the decision-making process is not flawed. Justice B R Gavai held that the power under Section 26(2) of the RBI Act can be used to demonetise the whole series of banknotes and not any particular series.

The majority consensus held that demonetisation cannot be struck down on the grounds of proportionality.