No chaos, terror funding stopped after note ban: Govt to SC

New Delhi: In compliance with the Supreme Court’s order, the Narendra Modi government on Thursday filed an affidavit before the apex court on the issue of demonetisation.

Attorney General Mukul Rohatgi, representing the government, said that a report had been filed starting from the initiation of SIT to look into black money, and all other issues which could the affect of demonetisation process.

The Centre contended in its affidavit that the purpose of demonetisation of high value currency notes was to ‘unearth black money stashed in the country over the last 7 decades.’

The government added that demonetisation was a step to reduce ratio of cash transactions in the country, and thus to combat the illegal, parallel economy.

It claimed that while recalibration of ATMs in the country was in full swing, funding of terror groups, which the ban on Rs 500 and Rs 1000 notes targeted, had completely stopped.

Rohatgi said that there was no chaos among people in the country despite the inconvenience they had faced due to the government's move. "If any, people's problems would be sorted out as soon as possible," he stated.

On the Panama papers scandal, the Centre said that a multi agency group had been formed to address the issue, which the government considers to be serious.

5 reports had been submitted to the SIT on the black money issue so far by the multi-agency group, the Centre contended. Out of these, the Centre had filed one of the reports in the apex court.

Attorney General Rohatgi had earlier on Monday filed a transfer petition before the Supreme Court seeking a stay on all pending pleas against demonetisation.

The Supreme Court had on November 18 refused to put a stay on hearings in various High Courts and lower courts related to the demonetisation of Rs. 500 and Rs. 1000 currency notes.

The court took on the Centre over demonetisation of Rs 500 and Rs 1000 notes, saying, "There are difficulties.  You can't dispute that."
"We will have riots on the streets," the apex court observed.

The Supreme Court dubbed as a "serious issue" the long queues outside banks and post offices and expressed its reservation on the Centre's plea seeking a direction that no other court in the country should entertain petitions challenging the November 8 notification demonetising Rs 1,000 and Rs 500 currency notes.

"It is a serious issue which requires consideration," a bench comprising Chief Justice T S Thakur and Justice A R Dave said, while asking the parties to be ready with data and other issues in writing.

Chief Justice TS Thakur said because of these difficulties, people are approaching the courts.