SC Dismisses Pleas Challenging 2016 Demonetisation

New Delhi: The Supreme Court of India has dismissed all the bail pleas challenging the demonetisation of 2016. Supreme Court, today, upheld the decision taken by the Union Government six years ago to demonetise the currency notes of Rs. 500 and Rs.1000 denominations.

It held that the demonetisation that took place in 2016 is valid and satisfies the test of proportionality.

The 5-judge bench comprising Justices S Abdul Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian and BV Nagarathna had reserved the judgment on December 7, 2022.

Reading out the judgement, Justice BR Gavai said, “demonetisation had a reasonable nexus with the objectives (eradicating black marketing, terror funding, etc.) sought to be achieved. It is not relevant whether the objective was achieved or not.”

The bench also added that the prescribed period of 52 days for currency exchange cannot be said to be unreasonable.