SC non-committal on exchange of old notes

Bench to decide if there was need for such a window for citizens

April 12, 2017 01:04 am | Updated 09:37 am IST - NEW DELHI

The Supreme Court said on Tuesday that it will first decide whether there is a need at all to open a window for the public to exchange or deposit their demonetised currency notes post the cut-off date of December 31, 2016 prescribed under the Specified Bank Notes (Cessation of Liabilities) Act.

The possession of demonetised notes is now an offence under the Act. The petitions have claimed that the government went back on its word to offer a grace period to deposit and exchange demonetised currency.

A Bench led by Chief Justice of India J.S. Khehar said the court would first decide whether there was a need for such a grace period, and then depending on the outcome, factually decide on individual demands for more time to deposit or exchange demonetised currency notes.

The Supreme Court posted the case for hearing in July 2017 as counsel for one of the petitioners sought time to respond to the recent reply of the Centre on the issue.

In its latest affidavit, the Centre had told the Supreme Court that it owed no legal duty to citizens to extend a “grace period” for deposit of their demonetised ₹500 and ₹1000 bank notes after December 31, 2016.

The affidavit filed by the Union Ministry of Finance had said the decision to not extend the period for deposit of demonetised notes was taken consciously after an overall review of the rampant “malpractices and irregularities” detected between November 9 and December 30, 2016 when the public was allowed to exchange or deposit their old money for the new currency.

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