Centre says no to another chance to deposit banned notes

The Supreme Court, on July 4, gave the Centre and Reserve Bank of India two weeks time to consider granting people with “genuine reasons” a new window for depositing demonetised notes. The Centre, in response, said this will “defeat the very object of demonetisation and elimination of black money”.

Written by ANANTHAKRISHNAN G | New Delhi | Updated: July 17, 2017 10:10 pm
Demonetisation, Banned notes, Depositing demonetised notes, SC demonetisation, business news, Indian Express The Centre said opening another window for depositing demonetised notes will “defeat the very object of demonetisation and elimination of black money”. (Representational Image)

A fortnight after the Supreme Court asked the Centre to consider granting a window to those who have not been able to deposit demonetised Rs 500 and Rs 1,000 notes due to “genuine reasons”, the Centre on Monday said this will “defeat the very object of demonetisation and elimination of black money”.

“If a window is opened for further period, persons who are in possession of the Specified Bank Notes (SBNs) would have had sufficient time and opportunity to carefully plan the reasons and excuses for not depositing the SBNs within the permitted period which was till December 30, 2016,” the Union Finance Ministry said in an additional affidavit filed in the Supreme Court on Monday.

“Any number of benami transactions and user proxies for the purpose of producing and depositing SBNs would then arise… the departments would have great difficulty in deciding any genuine case from the numerous bogus ones,” said the document, which includes a detailed list of the various “malpractices” that came to light post-demonetisation.

The affidavit was filed in response to a query from the court earlier this month. The court, on July 4, gave the Centre and Reserve Bank of India two weeks time to consider granting a window for “genuine reasons”. “You (Centre) cannot be allowed to deprive a person of his money if he couldn’t deposit it due to some genuine problems. Consider giving a window to a genuine problem. What if someone is terminally ill and couldn’t deposit the money,” a bench of Chief Justice of India Justice J S Khehar and Justice D Y Chandrachud had said.

The court was hearing petitions challenging the government’s notification which disallowed people from depositing old notes after a prescribed time.
In its affidavit, the Finance Ministry said that a window of 51 days, barring closed bank holidays, was provided for exchanging old currency. Unlike in 1978, when there were only six days.

During this time, anyone could have deposited the notes in their possession, either in person or through their authorised agents, said the government, citing clause 2 of the November 8 notification which permitted deposit of the SBNs through third-party authorisation. The petitioner had not given a valid ground on why the notes could not be deposited through an authorised person during this time, it added.

Giving details of the post-demonetisation crackdown on black money and tax evasions, the ministry said the Income Tax department conducted 1,100 raids/ surveys and issued 5,100 notices for verification of high-value cash deposits made in bank accounts, between November 9, 2016 and January 10, 2017. The raids revealed cash and valuables worth over Rs 610 crore, of which Rs 513 crore was in cash (Rs 113 crore in new currency), it said.

Besides, undisclosed income of over Rs 5,400 crore was detected in the raids.

On January 31 this year, the department launched “Operation Clean Money” for e-verification of cash deposits made afterNovember 8. More than 1.8 million persons who did not appear to be taxpayers were verified, and 0.378 million have been taken up for assessment and investigation, it said.

“Searches” by the I-T department, between April 1, 2014 and February 28, 2017, had “led to admission of undisclosed income of more than Rs 36,051 crore… in addition to seizure of undisclosed assets worth Rs 2,890 crore. “Surveys” conducted by the department during this period had also led to detection of “undisclosed income of more than Rs 33,000 crore,” said the affidavit.

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  1. R
    rajan
    Jul 18, 2017 at 6:26 am
    The government's plea and the SC directions on the issue are two sides of the same coin. Government is absolutely right in its contention in denying the window from administrative point of view. SC's approach is humanistic. Yet one thing is certain that demonetization has achieved little except for the harassment of people. The Real culprits of ding wealth have not been the least troubled. Their wealth rarely remains in the form of idle cash.
    Reply
    1. T
      Truth will prevail.
      Jul 18, 2017 at 12:23 am
      MANY GENUINE REASONS, ITS THEIR HARD EARNED MONEY, THAT GOVT INTENDS TO GRAB, ALL FOR FREE. WHY RBI NOT DIVULGING HOW MUCH CASH IT GOT?? CONSPIRACY HERE...ITS SUCH A HUGE SUM, GOVT WANT TO QUIETLY EAT IT ALL UP, IN THE GARB OF "BLAKK MONEY". MANY INDIANS SAVED OVER 10-20-30 YEARS, FOR SAFE FUTURE, DOTTER'S MARRIAGE, RETIREMENT, LAKH BY LAKH. NOW GOVT WANTS IT ALL FOR FREE. LAKHS OF NRIs, CURRENCY WITH THEM ABROAD. WHY?? NOBODY DREAMT MOWDI WUD PULL A FAST ONE. SOME IN PRECARIOUS POSITIONS ABROAD, LIKE, IN GREEN CARD QUEUE, IN ABROAD ILLEGAL JOBS, RELATIONSHIPS/WORK DUE TO WHICH THEY COULDNOT COME TO INDIA, MEDICAL CONDITIONS ABROAD/LOCALLY, LOST AND FOUND Rs CASES.
      Reply
      1. J
        Joseph Mumbai
        Jul 17, 2017 at 11:57 pm
        What if the crooks transferred money abroad with help from foreign embassy, eg.Porkistan, Russia or Norway and Britain. And then said they couldn't meet the deadline since they were abroad. They could use NRI for a little cut. India judiciary is a fraud. It needs clean up. Judges appointing judges. Look at the assets of the judges, it's mind blowing. India needs urgent judicial reform.
        Reply
        1. T
          Truth will prevail.
          Jul 18, 2017 at 12:31 am
          THAT IS THE JOB OF THIS GOVT, TO IDENTIFY SUCH CASES, TO INVESTIGATE AND ARREST AND PENALIZE. THAT DOESNOT MEAN THAT, ENTIRE SUFFERING POPULATION SHOULD BE HANGED BY THE GOVT. MOST CASES I KNOW ARE INNOCENTLY HARD EARNED MONEY, TOTAL LOSS TO OWNERS HOW CAN GOVT MORALLY SEE GRABBING SUCH MONEY, IN THE GARB OF LABELLING IT AS,BLAKK, AND THREATENING AND MUSCLING ITS THREATS VIA TV, TO THE NATURALLY SCARED MEEK MASSES, AGAINST TODAY'S ALL POWERFUL GOVT AND ITS FAR REACHING ARMS.
          Reply
        2. S
          sunil kumar
          Jul 17, 2017 at 11:52 pm
          Many Indians who are regarded as NRI encash foreign exchange in Rupees while in India. In many situation they could not encash this Indian rupees in foreign exchange while returning. This is "clean money". They have been unable to return this money during the demonetisation period. Similarly many foreign nationals of Indian origin are in the same situation. These people are being penalised to unearth "black money". This is gross injustice. Modi governmment should review the situation and organise to accept this clean money through Reserve Bank of India. Otherwise the victims will consider Modi government as extortionist. I hope the Supreme Court of India bring some sense to Modi government. The people with clean money must not be deprived of the legitimate rights. Modi government is unable to do anything who ded money through Sarada/Narada etc. but chosen weaker Indian to suffer.
          Reply
          1. T
            Truth will prevail.
            Jul 18, 2017 at 12:44 am
            THERES MASSES OF PEOPLE ABROAD WITH CURRENCY, IN IMPOSSIBLE SITUATIONS THAT THEY CANNOT TRAVEL TO INDIA, AND EXPECT TO SAFELY OR REASONABLY GO BACK ABROAD....NRIS, FOREIGNERS ALL. ALSO MANY INDIANS I KNOW HAVE FOUND , THEIR MONEY NOTES, WHICH WERE LOST MISPLACED , OR JUST SPOTTED AFTER A CLEANUP OF SOME CORNER IN HOUSE OFFICE ETC. WHATS THEIR FAULT U TELL ME. ITS PRECISELY THIS,MONEY THAT GOVT GRABBING FOR FREE WITH THREATS. BIGGEST MYSTERY IZ THAT, RBI KEEPS REPEATEDLY POSTPONING, MYSTERIOUSLY, FROM DECLARING THE OLD CASH IT GOT, OR THE OLD CASH STILL OUT THERE. VERY SUSPICIOUS , I SAY. THIS IS A CHESS GAME, WHICH THIS GOVT IS ILLEGALLY PLAYING, AGAINST THE PEOPLE, AGAINST SUPREME COURT JUDGES, THIS ISAGAINST ANY MORAL STANDARD. JUDGES MUST STEP IN AND STOP THIS GOVT STEP, FROM PUTTING BURKHA AND COVERING THE EYES, OF THE PEOPLE AND OF THE SUPREME COURT.
            Reply
          2. S
            S Venkataraman
            Jul 17, 2017 at 11:24 pm
            Why is SC interfering on policy matters? Who are they to do it? If SC wants to run the govt then they should get elected by the people. Let them do their job of interpreting law and dispensing justice instead of interfering in every aspect of governance. In the name of collegium they would like to select unsuitable persons as judges and insulate themselves from scrutiny under the garb of maintaining the status quo of basic structure of the cons ution. No wonder some one commented "tyranny by the unelected". It appears that SC is not interested in finding out tax evaders and blackmoney holders. Recently AG quite rightly asked a bench of SC hearing matters relating to farmers as to why they are interfering in the matter when the govt had already initiated several schemes for the farmers the results of which would be seen over a period of time in the future. SC is unnecessarily interfering in various issues which is not called for. It needs to set its own house in order.
            Reply
            1. T
              Truth will prevail.
              Jul 18, 2017 at 12:48 am
              HERE THIS GUY IS ANOTHER GOVT GUY, TEYING THEIR OLD THREATENING AND MUSCULAR WAYS, WHICH THEY SUCCESSFULLY ATTEMPTED ON THE POOR INDIAN INNOCENT MASSES, BUT NOW THIS GUY SEEMS THREATENING THE HONOURABLE JUDGES OF THE SUPREME COURT !! SMELLS OF, RAW EGO OF MAJORITY GOVT AND ITS OFFICIALS !!
              Reply
              1. T
                Truth will prevail.
                Jul 18, 2017 at 1:14 am
                WHAT AN IC MADRASI THIS FELLOW IS REALLY. BESIDES DECLARING INNOCENT INDIANS AS BLAKK MONEY PPL, HE IS ALSO CALLING OUR JUDGES AS BLAKK MONEY SUPPORTERS !! THIS GUY NEED PSYCHIATRY HELP ASAP !
                Reply
                1. R
                  Raghu
                  Jul 18, 2017 at 3:40 am
                  Because this SC is infested with dirty croo.cks by 10 years of UPA rule. Now time to give back to waitress madam! Got it?!
                  Reply
                2. R
                  ramaswamy
                  Jul 17, 2017 at 11:21 pm
                  demonetization is a fraud committed by the fake.
                  Reply
                  1. S
                    sunil kumar
                    Jul 17, 2017 at 11:59 pm
                    Demonetization is not fraud. It is right decision but logistic is done perfunctorily. As a result many Indians, NRI and foreign national of Indian origin have been deprived of the legitimate rights.
                    Reply
                    1. T
                      Truth will prevail.
                      Jul 18, 2017 at 1:00 am
                      RIGHT. THE SCHEME IS GREAT. BUT CLOUDED BY MASSIVE EGO, AND A DEEPLY HELD GREED, TO SNEAKINGLY GRAB INNOCENT PEOPLE'S HARD EARNED SAVED MONIES, THIS GOVT NEEDS TO BE SHOWN THE TRUTH, THE JUST, AND THE MORALLY CORRECT PATH. THE LAST HOPE IS THE CONCERNED JUDGE/S OF THE SUPREME COURT.
                    2. A
                      Arun
                      Jul 18, 2017 at 4:32 am
                      Absolutely! It was a fraud with the sole purpose of hitting the cash reserves of opposition parties in order to win UP elections.
                      Reply
                    3. d
                      dv1936
                      Jul 17, 2017 at 10:18 pm
                      A good decision
                      Reply
                      1. T
                        Truth will prevail.
                        Jul 18, 2017 at 1:02 am
                        MOSTLY THATS CORRECT.
                        Reply
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