STOCK MARKET BSE NSE

RBI defends demonetisation before Hyderabad HC

While submitting that the issuance of notification on Nov 8 for demonetisation of `500 and `1,000 is not violative of the provisions of the Constitution of India,

Published: 16th December 2016 03:33 AM  |   Last Updated: 16th December 2016 03:33 AM   |  A+A-

By Express News Service

HYDERABAD: While submitting that the issuance of notification on Nov 8 for demonetisation of `500 and `1,000 is not violative of the provisions of the Constitution of India, the Reserve Bank of India (RBI) on Thursday told the Hyderabad High Court that giving any prior intimation to the public about demonetisation would have defeated the very purpose of the Central government’s decision. 

In this regard, the RBI filed its counter affidavit before the HC, which is hearing batch petitions filed challenging the notification issued by the Centre.

On earlier occasion, a division bench of Acting Chief Justice Ramesh Ranganathan and Justice A Shankar Narayana, while dealing with petitions filed by Venkateswara Rao and K Srinivas of the city challenging the Constitutional validity of demonetisation, and another petition by former minister MV Mysura Reddy challenging the restrictions imposed on withdrawal of cash from banks, directed the respondents - Union of India and RBI to file counter affidavit.    

 The RBI, represented by its assistant general manager Manabhanjan Misra, in its counter defended its action. 

“The impugned notification was issued in the best interests of the country. It also intended to check funding by unaccounted wealth and fake notes which subserve activities such as terrorism and cause damage to the economy and security of the country. Section 26 of the RBI Act does not suffer from arbitrary or unbridled power conferred on the Government of India nor does it suffer from the vice of lack of guidelines in any manner.”

It said that the decision to issue the notification was taken to deal with an emergent situation and the question of giving any prior intimation to the people and calling for objections and conducting public hearings would not arise in such emergencies as any delay in taking a decision or any advance notice about the move would defeat the very purpose of the Central government’s move. 

The RBI further stated that apart from having a recommendation by the Central Board of the RBI, the notification was very much within the law. In fact, the Centre indeed has the power to demonetise the currency under section 26(2) of the RBI Act, it noted.
The matter is expected to come up for hearing on Friday.

Stay up to date on all the latest Hyderabad news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp