SC seeks explanation on exchange of banned notes

Satya Prakash

Tribune News Service

New Delhi, March 21

The NDA government on Tuesday faced some tough questions from the Supreme Court which asked it to explain why it didn’t give time to those who could not deposit demonetised currency notes before December 31 if they had genuine reasons for not meeting the deadline.

A Bench headed by Chief Justice of India JS Khehar – which repeatedly referred to Prime Minister Narendra Modi’s November 8 speech – said there was a promise that those unable to deposit currency notes of Rs 1,000 and Rs 500 would get opportunity till March 31.

It asked the government and the RBI to file separate affidavits explaining their respective stand by April 5 and posted the matter for further hearing on April 11.

Attorney General Mukul Rohatgi said the Prime Minister’s speech was followed by an ordinance and then the law enacted by Parliament gave the government the power to define the class that could avail the window.

“You may have discretion, but it cannot be an arbitrary exercise. From your submission, it seems that you are the final authority…we are not willing to accept it,” the Bench told Rohatgi. It said there was not a big number of such people and their grievances could be looked into by the government.

The top court is seized of petitions filed by almost a dozen individuals challenging the government’s decision to deny them time beyond December 31 to deposit old currency notes with RBI-designated banks. A law made possession of outdated currency a criminal offence and those with such notes can be prosecuted.

The petitioners wanted the court to give them protection from prosecution for possession of demonetised currency notes which has now become an offence but the Bench declined.

The Attorney General assured the Bench that no such action would be taken during the pendency of the petitions. He, however, said if the petitioners withdrew their petitions they would not be prosecuted for possession of banned currency notes, otherwise they would be prosecuted, in case they failed to convince the court about the genuineness of their case.

The NDA government had on March 10 opposed petitions against its decision not to allow her to deposit demonetised currency notes till March 31, saying it was a crime to possess demonetised currency notes.

“How can it be allowed? It’s a crime to possess old currency notes that have been demonetised,” Rohatgi had said. “There was always a window open for depositing the old currency notes till March 31 as the government notification had left some room,” the Bench had pointed out.