Hyderabad HC gives Centre a week to respond on cash crunch

Hyderabad: The Hyderabad High Court on Thursday told the Centre to consider the severe hardships that the people were facing in TS and AP due to the demonetisation of Rs 500 and Rs 1,000 currency notes.

A division bench comprising acting Chief Justice Ramesh Ranganathan and Justice A. Shankar Narayana was hearing three separate petitions by advocate K. Srinivas, city resident S. Venkateswara Rao and former minister M.V. Mysoora Reddy against the currency demonetisation.

When additional solicitor-general K.M. Nataraj sought two weeks to file a counter affidavit, the bench told him that the Centre had to recognise the problems that people were facing for the past month. It has to take steps in accordance with the situation, the judges said.

Mr Y. Balaji, counsel appearing for Dr Mysoora Reddy, opposed the plea for time. “People have been deprived of bread and butter with this notification,” he said.

He said that the Centre, neither in Parliament nor outside, was disclosing the details of currency that it had supplied to banks after the demonetisation. He said that while the people were suffering even to get Rs 5,000 a week, big players were taking away currency through backdoor methods.

While saying that people were looking to the judiciary as their last, counsel alleged that the Centre was running away from Parliament. While asking counsel not to make political remarks in the court, the bench said it was aware of the inconvenience being faced by the people and was considering what best it could do in this difficult situation.

The bench granted time till December 14 and made it clear that if the Centre and the RBI did not file their counter affidavits by that date it would continue its hearing.

Farmers woes move judges
The High Court expressed deep concern at the difficulties and hardships being faced by farmers in repaying their agricultural loans after demonetisation. It did so while dealing with a petition moved by Mr Boda Mangiah and seven other farmers of Jaggaiahpeta and Penuganchiprolu villages in Krishna district during the lunch session of the court.

The petitioners urged the court to direct the authorities to allow them to repay their loans using demonetised Rs 500 and Rs 1,000 till January 2017. The petitioners said they had taken agricultural loans from the primary agriculture cooperative societies in their villages and had to repay the loans before December.

They said that from November 14, PACS were prohibited from receiving the demonetised notes, and they were helpless. Reacting to the submissions, the bench said, “this is a difficult situation” but cautioned of misuse if the PACS were allowed to deal with money at this time.

Counsel for the petitioners told the court that petroleum outlets, airline ticket counters were permitted to receive old currency till this week. He contended that farmers could be put to this hardship which would lead to farmers rushing to private money lenders and all will land in debt trap and cycle of poverty. Asking the Reserve Bank of India and the Centre to respond to the serious issue, the bench said that it will hear the case on Friday.