Supreme Court upheld the demonetisation implemented by the Central Government on November 8, 2016. The verdict got a 4-1 majority in the apex court as only Justice B V Nagarathna from the Constitution bench disagreed with the final decision. Apex court has observed that there was consultation between the centre and the Reserve Bank of India (RBI) for six months before implementing demonetisation. This would quash the 58 petitions filed against the demonetisation of Rs 500 and Rs 1000 currencies.

The Bench headed by Justice S Abdul Nasir has pronounced the verdict on the 58 petitions challenging the demonetisation. The apex court held that the Centre’s notification dated 8 November 2016 is valid and satisfies the test of proportionality. Justice B R Gavai, while reading out the judgement, said demonetisation had a reasonable nexus with the objectives (eradicating black marketing, and terror funding among others) sought to be achieved.

On the other hand, Justice B V Nagrathna pointed out that the notes ban initiated by the Centre was “vitiated and unlawful” but said the status quo could not be restored now. In her dissenting judgment, she added that the government had taken such a step totally avoiding the Parliament, which is the backbone of democracy. The note ban should be implemented as a law in the Parliament, not as an ordinance, observed Justice B V Nagarathna.

However, the verdict would give big relief to the central government, especially Prime Minister Narendra Modi.