Everyone was impacted by demonetization, Chidambaram says the SC

Senior Advocate P Chidambaram said demonetisation was one of the major decisions taken in the last ten-twenty years . He urged the court to declare that 26(2) of the Reserve Bank of India Act, is not expressly applicable, and that, if it is not, it would constitute unconstitutional .

New Delhi (India), November 24: Senior Advocate P Chidambaram said on Thursday that demonetisation was one of the major decisions taken in the last ten-twenty years, which affected everybody because it raised concerns about the government for demonetizing Rs 500 and Rs 100 currency notes in 2016 at a five-judge Constitution bench.Next week, the court will hold a hearing in which another advocate from the petitioner side will make his arguments against the government's decision to demonetize currency notes of 500 and 1000 in 2016.Chidambaram, who argued for almost five hours, has taken the case from demonetisation history.Demonetization, he said, is an unprecedented step that affects everyone in the region.Demonetisation, he said, has failed in the last ten-twenty years.

Section 26(2) of the Reserve Bank of India Act, stipulates that the 2Central Board may declare that any series of bank notes of any denomination shall cease to be legal tender 3save at such office or agency of the Bank as may be specified in the order.The senior advocate argued that the Central government should not make any policy related to currency notes on its own, and that it was Rs 17.9 lakh crore at the time of demonetisation, and now it is 32.18 lakh crore, according to RBI, and that the government's actions have affected the money market.Mentioning that only a small portion of the total currency was demonetized in 1946 and 1978, the court asked if it should have been considered in this instance because parliament would have deliberated it thoroughly and considered the consequences of removing 86.4 percent of total currency?The court also asked Judges Abdul Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian, and BV Nagarathna.

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