Demonetization: SC lauds move against black money; says no to stay on note ban

Observing that fighting the black money menace was a “laudable” step, the Supreme Court on Tuesday refused to stay the government notification demonetizing Rs 500 and Rs 1,000 currency notes. It, however, asked the Centre to “consider taking steps to ease the pain of the common people” and also consider raising the limit of cash withdrawals.

“Carpenters, maids, vegetable sellers are dependent on cash...Your aim is to wipe out black money but people are traumatised standing in queues for hours doing nothing,” a bench comprising Chief Justice TS Thakur and Justice DY Chandrachud said.

“Why can’t the withdrawal limit be raised to a reasonable level so that there is less number of people standing in the queue,” it asked.

The government told the apex court that the situation was being constantly monitored at the highest level and just now, it has been decided that the banks would allow from today the withdrawal of Rs 50,000 per current account per week and the facilities would also be available to companies.

The apex court did not issue notices to the Centre or the RBI and asked them to file a comprehensive affidavit detailing steps taken so far to ameliorate the harassment and inconvenience caused to citizens due to demonetization of the high-value currency notes.

The government, represented by Attorney General Mukul Rohatgi, came fully prepared to defend its ambitious step aimed at curbing black money and counterfeit currency used in financing terror and extremist violence saying the target was to “catch the big fish” which the previous governments could not do in last 50 years.

Asking the government and the RBI to be open to suggestions the bench posted further hearing on the PILs to November 25.