With new currency notes still being few and far, the Supreme Court on Thursday asked the Centre why the old Rs500 notes should not be continued as legal tender in Government hospitals, crematoria and burial ground till such time the cash situation improves. The deadline for using the old currency notes had expired on Thursday.
Faced with the inconvenience faced by citizens who were unable to withdraw cash even upto Rs24,000 in a week as promised by the Centre, the Bench of Chief Justice TS Thakur, Justices AM Khanwilkar and DY Chandrachud said, “We recognise there is a shortage of new currency. If you recognise this difficulty, till such time you are not able to give new notes, why don’t you extend the period for Government hospitals and crematoria/burial groundsIJ” The bench repeatedly asked whether the Government suspected anything fishy in allowing this concession and reminded Centre that as on date, Government hospitals and crematoria only accept cash. A decision in this regard is expected soon as the Court will pass orders on interim relief with regard to demonetisation in the coming days.
However, on the issue of fixing a minimum assured limit on withdrawal, the bench was of the view that so long as the Government has issued a notification that allows a citizen to withdraw Rs24,000 per week, the Centre should honour it unless they wish to modify their notification. However, a breakthrough came with regard to District Cooperative Banks, who had amassed a sum of Rs8,000 crore by way of deposits by their customers over a four-day period (November 11-14).
Attorney General Mukul Rohatgi informed the court that in the next three days, a circular will be issued allowing the Rs8,000 crore to be deposited with Reserve Bank of India (RBI). He said that a sum of Rs13 lakh crore in old currency has been received by banks while Rs5 lakh crore has been generated by RBI in new currency. The bench observed, “How are crores of currency being seized when people are not getting even Rs24,000 in a week…Is your Rs5 lakh crore going in this fashion.”