Demonetisation first bold move in 70 years, Centre informs SC

New Delhi: Justifying the demonetisation of Rs 500 and Rs 1,000 notes from the night of November 8, the Centre on Thursday informed the Supreme Court that this was a bold attempt made in 70 years to unearth black money that has been stashed over the years.

In its affidavit to a batch of petitions, the Centre said the objective behind demonetisation was to unearth an illegal parallel economy and it is aimed at reducing the ratio of cash transactions. It said that the menace of fake currency has been tackled and funding for terror groups has stopped.

The apex court is to hear a batch of petitions on Friday challenging demonetisation. Further, the Centre also informed the court about the steps taken in the last few days to ease people’s difficulties to ensure that the transition was a smooth one. It said that re-calibration of ATMs is on in full swing. The government stated that any difficulty being faced by the people would be sorted out.

The affidavit said the government earlier constituted an SIT to curb black money, amended the Benami Act. It said there is no shortage of new currency and already Rs 6 lakh crore had been received as deposits in banks. The government has set up a committee which will take stock of the ground situation across the country.