NEW DELHI: The Supreme Court on Wednesday asked the Centre and the RBI to file a "comprehensive affidavit" on the 2016 decision to demonetise Rs 1000 and Rs 500 currency notes.
The court also asked the Centre to keep the files ready in connection with its letter to the RBI, the RBI Board's decision, and the demonetisation announcement by Prime Minister Narendra Modi on November 7, 2016.
During the hearing, a five-judge bench headed by Justice S Abdul Nazeer said the court is aware of its Lakshman Rekha on judicial review of government policy but the court needs to examine the matter as both sides do not agree if it was an academic exercise.
The bench, also comprising justices B R Gavai, A S Bopanna, V Ramasubramanian, and B V Nagarathna, noted that the petitioners main argument is Section 26 of the RBI Act does not authorise the Centre to completely cancel the currency notes of particular denomination.
"Therefore, the main question is whether the government had powers under Section 26 of RBI Act to demonetise all notes of Rs 500 and Rs 1000 denomination," the bench said.
The bench fixed more than 50 petitions questioning the Centres 2016 demonetisation decision for further hearing on November 9.
Attorney General R Venkataramani and Solicitor General Tushar Mehta for the Centre, said the issue has become an academic exercise now.
On the contrary, senior advocate P Chidambaram for petitioners said the issue is still relevant for the future as the 2016 decision led to horrendous consequences for the economy and common people.
The petitioners also claimed the government did not have power to cancel the currency notes through an executive order.
The AG, for his part, said when the Act is not challenged, the notifications cannot be challenged and the issues are academic.
