Friday, Apr 19, 2024 | Last Update : 11:32 AM IST
Demonetisation: SC refuses to extend use of old Rs 500 notes
Refers petitions to five-judge Constitution bench by framing 9 questions for adjudication.
Mumbai: The Supreme Court which earlier heard petition challenging demonetisation on Friday refused to extend use of Rs 500 notes that was completely stopped on December 15.
The apex court referred the petitions challenging November 8 notification on demonetisation to five-judge Constitution bench by framing 9 questions for adjudication, PTI reported. The court accepted the assurance of Attorney General that Rs 8,000 crore collected by district cooperative banks between November 11-14 will be allowed to be exchanged.
The court also asked the government to fulfill the commitment of Rs 24,000 withdrawal per week to the extent possible. The apex court has also stayed proceedings on petitions against demonetisation notification in all high courts and says only apex court will hear them.
It was expected that the apex court would pass a favourable order on a plea seeking extension in use of demonetised Rs 500 currency notes for some more time.
On Thursday, the apex court slammed the government for failing to provide the general public with enough cash as people were still facing inconvenience even after over a month since notes were banned.
The government had requested the SC to not pass any interim order on note ban as the move will lead to more cases of black money which the SC bench did not buy, saying when common man was not getting a single note, large amounts of new notes were being recovered throughout the country.
On December 15, the government fully stopped use of Rs 500 notes as it had given some relaxation in their rules. Till Thursday, Rs 500 notes continued to enjoy their legal tender status at select outlets including at LPG centres, petrol pumps, paying for public taxes and school fees with a cap.
The government has now completed a total phase out of Old High Denomination currency notes from the banking system after extending many relaxations in their use. On November 8, the government took the entire nation by surprise through a televised announcement that it was scraping Rs 1,000 and Rs 500 denomination currency notes.
Both the denominations constituted over 86 per cent of total currency in circulation in system and government cancelling them caused huge cash crunch in country that led to long queues outside banks and ATM kiosks.
