SC refuses to interfere with Centre’s policy on demonetisation at this stage

The court further restrained all high courts from examining the issue, stayed proceedings there and transferred them to itself.

The Supreme Court Friday, in its interim order on demonetisation, refused to interfere with the Centre’s decision firmly underlining that “these are matters of fiscal policies”. The court further restrained all high courts from examining the issue, stayed proceedings there and transferred them to itself. Stressing that the government is the best judge, the court also refused to extend dates for exemption of old Rs 500 and Rs 1,000 currency notes for certain services. After referring questions related to the policy to a five-judge constitution bench, the court said the government should try its best to honour commitment on weekly withdrawal of Rs 24,000 per person.

On Thursday, the court had asked the government how people were getting huge amounts of money in new currency referring to the seizures being made across the country. The Centre had submitted an affidavit last week on demonetisation in the Supreme Court, saying it was an attempt to unearth black money stashed over the last seven decades.

The Centre in its affidavit told the apex court that demonetisation is a step to reduce ratio of cash transactions, adding the objective is to unearth illegal parallel economy. Attorney General Mukul Rohatgi had earlier filed a transfer petition before the Supreme Court seeking a stay on all pending pleas against demonetisation.