SC dismisses plea against RBI notification allowing exchange of Rs 2k otes without ID

Mumbai: The Supreme Court on Monday dismissed a plea filed by a lawyer against the Reserve Bank of India's decision (RBI) to allow the exchange of Rs
2,000 notes without any requirement for requisition slip or identity proof citing it as an area of “executive governance”.

A bench of Chief Justice of India (CJI) DY Chandrachud and Justice PS
Narasimha observed that the notes were being exchanged since the
purpose of demonetisation had been served.

“This is the matter of executive policy decision,” the bench said while dismissing the appeal.

“Suppose you give a Rs 2000 note to a vegetable vendor, will he ask for your ID proof or tender you the things? .. This issue is an area of executive governance. You cannot equate desirability with legality. A large amount of transactions happen in this fashion, would you say they are all illegal?“ Chandrachud said.

The appeal was filed by BJP leader and advocate Ashwini Kumar Upadhyay
in his personal capacity. Upadhyay filed the present appeal before the
Supreme Court against the Delhi High Court order that had rejected a
Public Interest Litigation (PIL) against the RBI notification.

On May 29, the Delhi High Court dismissed the PIL challenging the
notifications enabling the exchange of Rs 2,000 denomination currency
notes without any requisition slip and ID proof. The HC had said the
decision was taken to avoid inconvenience to citizens, and that it cannot sit as an appellate authority on a policy decision. The Delhi High Court in its verdict reasoned that the Rs 2000 notes had served their purpose and the decision to withdraw the same was a policy matter which should not be interfered with by the courts.

Upadhyay filed an appeal in the SC challenging the Delhi High Court’s
verdict. Updhyay said the Rs 2,000 banknotes are being exchanged
without any requisition slip and ID proof like Aadhaar card by criminals and terrorists also.

Upadhyay stated in his appeal that the High Court ruling was contrary to the objectives of multiple legislation meant to deal with black money, counterfeiting and money laundering. Further, the RBI notification affects the rule of law in India, and is violative of the rights to equality and dignity as banks are allowed to convert black money into white, the appeal said.