Mixed Reactions to SC's Majority Decision on 2016 Demonetisation

NEW DELHI: The Supreme Court's 4:1 verdict on Monday upholding the Central government's demonetisation move in 2016 led to a war of words between the Bharatiya Janata Party and the Congress. Ravi Shankar Prasad, former BJP Union Minister and senior leader, scathingly asked if Rahul Gandhi would tender an apology to the nation now for his 'campaign against the demonetisation scheme'. The Congress and the Nationalist Congress Party (NCP) hit back, saying the BJP government at the Centre cannot absolve itself of blame for the distress suffered by the people of the country due to the decision to demonetise Rs 500 and Rs 1000 currency notes.

A SC Constitution Bench on Monday upheld by a 4:1 majority the central government's decision taken six years ago in 2016 to ban notes of Rs 500 and Rs 1,000 denominations. The majority of Justices S Abdul Nazeer, B R Gavai, A S Bopanna and V Ramasubramanian held that the Centre's notification of November 8, 2016 to be valid and that it satisfied the proportionality test.

The only dissenting voice, that of Justice B V Nagarathna, who was part of the 5-judge bench, differed with the majority order. Justice Nagarathna, in her judgment, asserted that it was through legislation, and not through notification that the scrapping of Rs 500, Rs 1,000 series notes had to be done. She also differed on point of the Centre's powers from the majority's view under section 26(2) of RBI Act.

"When the proposal for demonetisation originates from the Central Govt, it is not under Section 26(2) RBI Act. It is to be way of legislation, and if secrecy is needed, then by way of an Ordinance," said Justice B V Nagarathna.

Justice BV Nagarathna in her dissenting view held that though demonetisation was well-intentioned and well thought of, it has to be declared unlawful on legal grounds (and not on the basis of objects). She offered the view that demonetisation was the Centre's move to address disparate evils.

"No suggestion that it was motivated by anything but best intentions and noble objects for the betterment of the nation." However, she held that the measure was unlawful not on the objects of demonetisation but only on a purely legalistic analysis of the relevant provisions of the Act.

There were a few other voices that were not content with the outcome and expressed as much.

Sitaram Yechury, General Secretary of Communist Party of India (Marxist), while reacting to the Supreme Court's Constitution bench decision on demonetisation on Monday, observed that the Court has not declared it to be the 'right' decision.

"The Supreme Court only justified that Central government has the right to take the decision of demonetisation but have not said that demonetisation was right," Sitaram Yechury said

On Monday, SC upheld the 2016 move saying the decision did not suffer from any legal or constitutional flaw.

Not to be left behind, the Nationalist Congress Party and the Congress on Monday also slammed the Narendra Modi government for the demonetization move. The two parties said the BJP government at the Centre cannot exonerate itself of blame for the distress caused to the people of the country due to the decision to scrap high-value currency notes or the note ban, as it has come to be known.

NCP national spokesperson Clyde Crasto said, "Despite the (SC) verdict, the BJP government must be held accountable for the downfall of the economy due to demonetisation and the loss of many lives due to the disastrous, ill planned process,". He also opined that, with 99 per cent of demonetised notes coming back to the banks, the move failed in exposing black money.

Demonetisation came to be regarded as a cruel policy enacted under false pretences. None of its stated objectives was fulfilled- neither a cashless economy, nor a revenue bonanza for the government, failing to clean the system of illicit money, or stopping terror finance. The result was needless suffering and citizens were willingly made fools of.

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