The Supreme Court on Friday refused to give any interim relief to citizens in the wake of post-demonetisation cash crunch as it directed all petitions challenging the Government’s note ban decision to be heard by a Constitution Bench and stayed all courts in the country from taking up any challenge against the Government’s move.
After the Bench of Chief Justice TS Thakur, Justices AM Khanwilkar and DY Chandrachud hinted on Thursday that some interim orders were needed as the new currency notes are in shortage while people are being inconvenienced, expectations were high that the Government may be asked to extend the use of old currency notes as legal tender in Government hospitals, rail services etc and the limit of withdrawal per account holder per week may be fixed in such a manner that citizens could get a minimum assured withdrawal on their visit to the bank.
Friday’s order dealt with these aspects but left it to the Government to take a decision being “sensitive and responsive to the problems encountered by the common man”. The Bench noted that an extension on essential services in Government hospitals may not be possible as the expiry date of depositing the demonetised currency will end on December 30. “Hence, it will be impossible to deposit the demonetised notes at specified counters thereafter,” said the Bench.
On the issue of withdrawal of Rs 24,000 per account holder per week, the Bench noted the Centre’s submission that it required 50 days’ time to streamline cash flow. This period has not expired still. Moreover, the RBI had till date replaced 40 per cent of the demonetised currency with new notes. The Bench asked the Centre to consider reviewing its decision on withdrawal periodically and take corrective measures to fulfill the commitment of Rs 24,000 withdrawal as per RBI Notification.
District Cooperative banks can deposit a sum of Rs 8,000 crore in demonetised currency with RBI’s Currency Chests, and new currency will be provided only to the extent of such notes which are not counterfeit or fake and that comply with KYC norms. However, the bar on such banks to receive further deposits in demonetised currency or exchange it with new currency will remain till a Constitution Bench of the apex court decides on the validity of demonetisation.
A five-judge Bench of the apex court will hear nine issues related to validity of demonetisation that will also decide whether Courts can decide on fiscal and economic matters and whether political parties such as CPI is entitled to approach the Supreme Court on such matters against the Government.