Supreme Court of India dismissed the pleas challenging the 2016 demonetization, upholding the Centre’s decision to demonetize the currency notes of 500 rupees and 1000 rupees denominations, reported Deccan Herald.
The five-judge bench held that demonetization cannot be struck down on the grounds of proportionality.
Justice B R Gavai said that the Centre’s decision-making process cannot be flawed as there was consultation between RBI (Reserve Bank of India) and the (BJP) government.
"We find that the three purposes are proper and there was a reasonable nexus between the objects and the means to achieve the objects. Action cannot be struck down based on the doctrine of proportionality,” Justice Gavai said, pronouncing the judgment.
The period prescribed of 52 days cannot be said to be unreasonable, the Justice said.
The arguments in the case were heard by a five-judge constitution bench of the country’s top court.
In November 2016, PM Modi personally led the shock move to outlaw 86 percent of the cash in circulation to target undeclared “black money” and fight corruption, reads the report.