SC believes there is no flaw in the Centre’s decision-making process regarding demonetisation

The Supreme Court ruled that the Centre had the authority to demonetize all series of bank notes, adding that the November 8, 2016 decision was neither irrational nor subject to the proportionality criterion.

The Supreme Court upheld the Narendra Modi government’s 2016 demonetisation decision, saying there was no flaw in the decision-making process.

The Supreme Court ruled that the Centre had the authority to demonetize all series of bank notes, adding that the November 8, 2016 decision was neither unreasonable nor subject to the proportionality doctrine.

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According to the Supreme Court, enough consultation took place between the Centre and the Reserve Bank of India before to the note ban decision. However, Justice BV Nagarathna disagreed with the majority and issued a dissenting opinion.

The bench reserved its ruling on December 7 after hearing extensive arguments from the government and petitioners who maintained that the note ban decision was arbitrary, unconstitutional, and contradictory to the powers and procedures established by the Reserve Bank of India Act.