Published: Fri, November 25, 2016
Global Media | By Abel Hampton

Demonetisation to eradicate black money, to benefit all: Govt to SC

Demonetisation to eradicate black money, to benefit all: Govt to SC

The Government today suffered another jolt with the Supreme Court refusing to restrain high courts across the country from taking up issues arising out of its decision to demonetise Rs 1,000 and Rs 500 currency notes, saying people may get “immediate relief” from them.

The Centre's claim that demonetisation was a "success" as over Rs 6 lakh crore have already been deposited and about Rs 10 lakh crore was expected to come to the exchequer till December end, which would prevent hoarding of cash, failed to cut ice with the apex court as it refused to stay the ongoing proceedings before the HCs.

Stating that the apex bank and the Finance Ministry were monitoring the distribution of currency notes of all denominations, the government said that the demonetisation was an attempt to unearth the black money that has been stashed in last seven decades.

Putting up a fearless face amid sustained opposition onslaught and the looming threat of judicial intervention - the Left parties on Wednesday vowed to add heft to the litigation on demonetisation by filing a joint petition in the Supreme Court - the government on Wednesday announced more steps to help farmers to meet their cash needs during the ongoing rabi (winter) sowing season.

"The government has set up a committee which will assess the ground situation across the country on demonetisation move", AG tells SC.

A bench led by Chief Justice of India T S Thakur said it would not be appropriate to issue an absolute order of this kind since high courts might be seized of various kinds of petitions that require some urgent orders. To which the bench said, "If you feel urgency, you can come prior to the date fixed and request to prepone the date but first let the Supreme Court decide the transfer petition of the Centre".

The demonetisation situation is being closely monitored on daily basis and relaxations and relief measures are being taken accordingly, the government said in its affidavit.

When the bench asked "How much have you collected", Rohatgi gave the figure of over Rs six lakh crore. Global average for cash transaction ratio to GDP is 4 per cent while in India, it stands at 12 per cent, the government told the court.

However, the bench noted that people were facing difficulties saying, they are affected and have the right to approach the courts. Some have also questioned the limits on cash withdrawals.

On Wednesday, the Supreme Court had asked the government that if it was serious to combat corruption and black money, why it did not appoint a Lokpal.

Prime Minister Narendra Modi, in a televised address to the nation on November 8, had announced that Rs 500 and Rs 1000 notes will no longer be legal tender from November 9.

"It will eliminate black money which casts long shadow of the parallel economy on our real economy".

Like this: