SC reserves verdict on demonetisation pleas, directs Centre, RBI to place related records

Reserving its verdict on a clutch of petitions challenging the central government’s November 2016 decision of demonetisation of Rs 500 and Rs 1,000 currency notes, the Supreme Court on Wednesday directed the Centre to produce relevant records (relating to the decision) in a sealed cover for the court’s perusal.

A five-member constitution bench comprising Justices Abdul S Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian and BV Nagarathna directed parties to file their written submissions by December 10. Appearing on behalf of some of the petitioners, senior advocate Shyam Divan argued that a recommendation from the Reserve Bank of India (RBI) was a “condition precedent” before the central government could have taken the decision of demonetisation.Divan argued that while the central government was found wanting in its duty, the RBI also did not act correctly. Appearing on behalf of the Centre, Attorney General for India R Venkataramani denied the accusations.

On Tuesday, the RBI had told the top court that there was “no procedural lapse” in the demonetisation of Rs 500 and Rs 1,000 currency notes in November 2016.


Senior advocate Jaideep Gupta, appearing for the RBI, had told the constitution bench that “no judicial review lies once there is no procedural lapse”. He had further informed the bench that the central board of RBI met on November 8 and recommended demonetisation. The recommendation went to the Cabinet which took a decision on the same.