New Delhi: The Delhi High Court on Monday dismissed a Public Interest Litigation (PIL) challenging the RBI's decision to withdraw Rs 2,000 denomination bank notes from circulation.
A bench of the Chief Justice Satish Chandra Sharma and Justice Subramaniam Prasad has rejected the plea filed by an advocate Rajnish Bhaskar Gupta. After hearing the petitioner and the RBI's lawyers on May 30, the court had reserved its order on the PIL.
The RBI has asked banks to allow people to deposit or exchange Rs 2,000 notes till September 30.
Petitioner Gupta contended that the RBI has no power under the law to discontinue Rs 2,000 notes from circulation. He said that the Center alone has the power to take a decision in this regard. He also said that many shops and vendors were not taking Rs 2,000 notes.
In his petition, Gupta further stated that the RBI has no independent power to direct the non-issue or withdrawal of bank notes of any denomination. This power is vested only with the Center under Section 24(2) of the RBI Act, 1934, the petitioner said.
Earlier too, on May 29, the high court had rejected a petition filed by lawyer and BJP leader Ashwini Kumar Upadhyay challenging RBI's decision to allow exchange of Rs 2,000 notes without furnishing any identity proof or demand slip. The RBI had mentioned that withdrawal of notes was a 'currency management exercise' and a matter of economic policy. The high court had observed that Rs 2,000 notes have served their purpose and the decision of withdrawing it was a policy matter that should not be interfered with.
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Also, the court stated that it cannot be said that the government's decision is arbitrary or encourages money laundering or black money.
