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Thursday, May 23, 2024

PIL against withdrawal of ₹2,000 notes: RBI says it is not demonetisation; Delhi High Court reserves order.

The Delhi High Court Tuesday reserved its verdict in a public interext litigation (PIL) petition by challenging Reserve Bank of India’s (RBI) notification for withdrawal of the ₹2,000 currency notes from circulation.

Senior Advocate Parag Tripathi appeared for the RBI and stated that the withdrawal of ₹2,000 notes was a statutory exercise by the RBI and not demonetisation.

A Division Bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad said that it will pass appropriate orders in the matter.

The plea filed by BJP leader and advocate Ashwini Kumar Upadhyay argued that the RBI has allowed exchange of notes notes without obtaining any requisition slip and identity proof and therefore, it is arbitrary and irrational.

“It is necessary to state that RBI admits in para-2 that total value of ₹2000 banknotes in circulation have declined from ₹6.73 lakh crore to ₹3.62 lakh crore, which ₹3.11 lakh crore has been reached either in individual’s locker otherwise has been hoarded by the separatists, terrorists, maoists, drug smugglers, mining mafias & corrupt people,” the plea stated.

Upadhyay submitted that he has not challenged the notification as a whole, but only assailed the provision allowing the exchange of currency without any proof of identity.

“It is for the first time that people can come to banks with money and get it exchanged. Gangsters and mafias and their henchmen can come and get their money exchanged,” he said.

The RBI had on May 19 notified the withdrawal of ₹2,000 notes. It added that the currency will still be legal tender. The RBI has advised people to deposit the banknotes into their bank accounts or exchange them for other denomination notes at bank branches.

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