With The Approval Of The Parliament On The Recommendation Of The RBI, the Center’s Affidavit That Demonetisation Is Not A One-Way Economic Policy: The central government again strongly defended demonetization. The Supreme Court had issued notices to the Reserve Bank and the Central Government to submit detailed affidavits in the case related to demonetization. Following this, the central government justified the demonetization in an affidavit filed in the Supreme Court on Wednesday.
The government claimed that the demonetization was part of a continuous drive to eradicate black money. This is part of efforts to curb tax evasion and increase digital payments. According to the central government’s affidavit, the demonetization was implemented as per the recommendation of the Reserve Bank.
The government implemented demonetization in the country by using the powers given by the Parliament. The Centre’s affidavit also states that the previous note ban proceedings were in different contexts. The Center claims that demonetization is not a one-shot economic policy of the government. The Center also explained that demonetization is part of the measures to strengthen the country’s economy.
The affidavit submitted by the Center also states that demonetization was implemented in the country as per the recommendation of the Reserve Bank to control the parallel financial sector.
After the report of the Reserve Bank of India that even after six years of demonetization, the central government came out in defense of the demonetization in an affidavit submitted to the court.
The petition against demonetization is currently pending before the Constitution Bench. The central government had asked for an extension of time to file the affidavits in the petitions related to demonetization. However, expressing dissatisfaction with this, Justice B.V. Nagaratna said a constitution bench would not have adjourned the case on this ground and it was a shameful act. A five-judge constitution bench hears petitions related to demonetization. Finally, considering the Centre’s demand, the case was adjourned to November 24.
Former finance minister and Congress leader P. It was when Chidambaram pointed out that the court asked the central government to submit a detailed affidavit. After Prime Minister Narendra Modi unexpectedly announced demonetization in 2016, several petitions challenging the move reached the Supreme Court. 58 petitions have reached the court questioning the note ban. In the petitions, it was alleged that banning Rs 500 and Rs 1000 notes was against the rules.
But for a long time, these petitions were pending in the Supreme Court. These petitions came before the Constitution Bench for the first time in December 2016. But after the retirement of the judges on the bench, these petitions came to the fore again.
At the same time, according to the RBI’s report released last week, it is now 71.84 percent more than what was in the hands of the citizens of the country which was demonetized on November 8, 2016. As on November 4, 2016, the amount of money held by the people was Rs 17.7 lakh crore. According to the estimate till October 2022, people have currency notes worth Rs 30.88 lakh crore.
According to the Reserve Bank of India’s report, even six years after demonetization, the currency notes held by the people have increased. New figures suggest that the goal of increasing digital payments while reducing cash consumption has failed.
Prime Minister Narendra Modi implemented demonetization in the country on November 8, 2016, at 8 pm. 500 and 1000 rupee notes were withdrawn that day. The central government’s explanation after demonetization was to eliminate black money in the country and reduce the use of cash in the market. One of the stated objectives of the move was to increase digital transactions in the country.
