The Supreme Court said it has the power to determine the manner in which the decision on demonetisation was taken . The aim of the 2016 demonetisation scheme was to eliminate black money and fake currencies, according to the court .
New Delhi, December 6: The Supreme Court said on Tuesday that it has the power to determine the manner in which the decision on demonetisation was taken, adding that the judiciary cannot fold its hands and sit simply because it is an economic policy decision.The Courts responded to petitions challenging the Centre's decision to demonetize currency notes of Rs 500 and Rs 1,000 in 2016, according to RBI's counsel.Advocate Jaideep Gupta, the RBI's senior advocate, told the court that the aim of the 2016 demonetisation scheme was to eliminate black money and fake currencies, and that the proportionality principle should be applied to economic policy decisions, but that the court cannot fold its hands and sit, according to Justice BV Nagarathna.However, the judge can also look at decision-making methods and other aspects.
The Central Board of RBI, in an additional affidavit, said that in accordance with the provisions of section 26 of the Reserve Bank of India Act and the Reserve Bank of India General Regulations, 1949, the Board voted to abolish the operation of the registry and declared the same on November 8, 2016, RBI said in an affidavit