People are frantic, there may be riots: SC refuses to bar HCs from hearing pleas on demonetization

The Supreme Court on Friday refused to stop high courts from entertaining petitions challenging the Centre's demonetization notification saying that people are seriously affected and doors of courts cannot be shut in a situation which "may lead to riots".

While dubbing the long queues outside banks and post offices as a "serious issue", the apex court expressed its reservation on the Centre's plea seeking a direction that no other court in the country should entertain petitions challenging the November 8 notification. "It is a serious issue which requires consideration," a bench comprising Chief Justice T S Thakur and Justice A R Dave said, while asking the parties to be ready with data and other issues in writing.

"Some measures are required. See the kind of problems people are facing. People have to go to the high court. If we shut them from going to the high court, how can we know the magnitude of the problem. People going to different courts indicates the magnitude of the problem," the bench said. It made the remarks as Attorney General (AG) Mukul Rohatgi submitted that any matter relating to challenge the demonetization issue be heard by the apex court only. However, the bench said, "People are affected and they have the right to approach the courts. People are frantic. There may be riots."

Noting that there are difficulties, it asked the AG, "Can you (the Centre) dispute it." The AG said there is no dispute, but the queues are getting shorter and even suggested that the CJI can go out during lunch and himself look at the queue. "Kindly go in the lunch time," the AG told the bench and took objection to senior advocate Kapil Sibal, appearing for a private party, for allegedly exaggerating the situation.
"It's a political attempt in the court. I have seen your (Sibal's) press conference also. You are not appearing for a political party, but for an advocate. You are turning the apex court into a political platform," Rohatgi said.

However, Sibal said, "I have the freedom of speech to criticise government policies. I am talking here about the problem faced by people and not politics." He claimed that 47 people have died since November 8 and a serious situation has arisen due the shortage of currency notes in the banks. At the outset, the bench questioned the relief measures undertaken by the Centre by saying, "Last time you said there will be relief for people in the coming days but you have squeezed the exchange limit to Rs 2,000 only." "What is the difficulty? " the bench asked Rohatgi. 

The AG explained the situation by stating that after printing, the currency has to be moved to thousands of centres across the country and ATMs have to be re-calibrated."There is no shortage of funds," he said. To questions from the bench, the AG said Rs 100 notes are in circulation and the ATMs needed to be re-calibrated to issue new currency notes of Rs 500 and Rs 2,000. Rohatgi said the higher denomination notes of Rs 500 and Rs 1000 notes formed 80-85 per cent of the currency notes in circulation before November 8.

He also elaborated on the steps taken by the government to meet the situation by stating that besides reducing the exchange limit, farmers have been allowed to withdraw Rs 50,000 and people having weddings at home can withdraw Rs 2.5 lakh. "At a petrol pump, which has card swipe machine of SBI, people can go and withdraw money upto Rs 2,000. We have been monitoring the situation day-by-day," Rohatgi said and added that the idea was to push the new notes of Rs 2,000 as one note of Rs 2,000 is equal to 20 notes of Rs 100. At this point, Sibal interrupted and said the problem is of printing as they need to print Rs 23 lakh crore, but they do not have the capacity to do that.

"Already they have frozen Rs 14,000 crore and it is not clear under which law they have done so," he said, contending that it is a serious situation where people cannot withdraw their own taxed money. "They are trustee, how can they not let us withdraw our legitimate money," he said, adding that "the situation has turned from bad to worse". Sibal said that the government was not concerned about the people living in remote areas of the north-east, Himachal Pradesh and Naxal-hit district of Bastar where people have to walk for 20 kms to reach an ATM.

While the Congress leader was making the submission pointing out the deficiencies in the steps taken by the Centre, the AG said, "We need not give any explanation as right now it is the interim application that has to be heard. Realising that the bench has reservation in entertaining the Centre's application, Rohatgi said, "We will file a transfer petition." When the bench once again asked what relief is in the offing, Rohatgi said the situation is monitored "day by day and hour by hour" and it is not a case where only one notification has been issued since November 8 but several to meet the varied situation after taking note of the suggestions.

He said mobile vans of State Bank of India are reaching the people at strategic locations including private hospitals and markets as he himself saw one such van at the Greater Kailash market. The matter will be heard again on November 25. The Centre had moved the apex court seeking a stay on the proceedings before various high courts and other courts except the apex court against demonetization issue, saying otherwise it would create a lot of confusion