Currency recall bold move, government tells Supreme Court

NEW DELHI: The Modi government claimed on Thursday that the sudden invalidation of Rs 500 and Rs 1,000 currency notes was a “bold move” never tried on such a scale before and it would help the economy in the near future.

The government also claimed that the success of the measure, which came into force on November 9, hinged on secrecy.

Any advance inkling of the move would have defeated the entire exercise, the finance ministry said in a fresh affidavit filed in the court ahead of a crucial hearing on a batch of petitions challenging the legality of the demonetisation on the grounds that it had badly affected the common man. The court had asked the government to explain what it was doing to ameliorate the lot of people facing a cash shortage caused by the sudden move.

The ministry defended the demonetisation as a “bold move”.