the supreme court upheld the Centre’s decision on demonetisation in 2016.
The supreme court said the notification dated November 8, 2016, which announced the decision to toss the high-value currency notes of 1,000 and 500, cannot be said to be unreasonable and struck down on the ground of the decision-making process.
A five-judge Constitution bench of the apex court, headed by Justice S A Nazeer, said the Centre’s decision-making process could not have been flawed as there was consultation between the Reserve Bank of India (RBI) and the Union government.
“The notification dated November 8, 2016, valid, satisfies the test of proportionality,” the bench, also comprising justices B R Gavai, A S Bopanna, V Ramasubramanian and B V Nagarathna, said.
While Justice Nagarathna differed from the majority judgment on the point of the Centre’s powers under section 26(2) of the RBI Act.