Delhi High Court Dismisses Plea Against RBI Decision on Rs 2,000 Banknote Exchange

NEW DELHI: The Delhi High Court on Monday dismissed a PIL petition which challenged the RBI notifications on the exchange of Rs 2,000 denomination currency notes without using any requisition slip and ID proof.

The HC said it has been done to avoid causing any inconvenience to citizens, and that the court cannot act as an appellate authority on a policy decision.

The high court pointed out that the government's decision cannot be said to be perverse or arbitrary. Nor can it say it encourages black money, money laundering, profiteering or facilitates corruption.

A HC bench comprising of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad said this is a straight- forward policy decision of the government and courts are not empowered to act as an appellate authority over the government’s decision. The high court ruled that the Public Interest Litigation (PIL) lacks merit and dismissed the petition filed by advocate Ashwini Kumar Upadhyay, who had submitted the plea against the notifications by the Reserve Bank of India (RBI) and SBI, enabling exchange of Rs 2,000 banknotes without requisition slip and identity proof.

A large amount of Rs 2,000 currency notes has reached either lockers of individuals or has been secreted by separatists, terrorists, Maoists, drug smugglers, mining mafias and corrupt people, the petitioner had claimed. The plea also stressed that the notifications were arbitrary, irrational and offended Article 14 of the Constitution, which deals with equality before law.

Defending its notification before the high court, the RBI said its action is not demonetisation but a statutory exercise. The central bank said the decision taken to allow exchange of Rs 2,000 denomination currency notes was for operational convenience and the court cannot interfere in such matters.

On the other hand, Upadhyay clarified that he was not challenging the decision to withdraw Rs 2,000 banknote but criticising the exchange of the currency without any slip or identity proof.

On May 19, the RBI had announced withdrawal of Rs 2,000 currency notes from circulation, and said existing notes in circulation can either be deposited in bank accounts or exchanged by September 30. The RBI had said in a statement that the bank notes in Rs 2,000 denomination will continue to be a legal tender.

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