Demonetisation: Bhavnagar co-operative bank moves Gujarat HC, challenges legality of move

The petition has also challenged the action by the government and the Reserve Bank of India banning the cooperative banks from accepting or exchanging these notes.

By: Express News Service | Ahmedabad | Published:November 26, 2016 3:29 am

The Bhavnagar District Cooperative Bank, through its chairman Nanubhai Vaghani, Friday moved a petition in the Gujarat High Court, challenging the legal validity of demonetisation of notes in the denomination of Rs 500 and Rs 1000. Besides, the petition has also challenged the action by the government and the Reserve Bank of India banning the cooperative banks from accepting or exchanging these notes. The RBI had issued notices to all the 18 Gujarat-based DCCBs, asking them not to accept and exchange the demonetised notes. This has resulted into major controversy among political parties.

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The petition, moved through advocate B M Mangukia, has prayed the court to issue the RBI “to accept the notes of Rs 113 crore collected by the petitioner no.1 bank in their chest with the direction that same may be immediately substituted with new currency notes…”

The bank operates in Bhavnagar, Amreli and Gadhda and Botad talukas of Botad district. It says that the bank is losing the interest of about Rs 76 crore. “All branches of the petitioner are non-functional. As on today, since there is no currency notes are available with the petitioner no.1 bank, no farmers are approaching any of the branches of the petitioner no.1 Bank.”

It says that 90 branches of the bank are defunct because of demonetisation. The petition is likely to come up for hearing on Monday.