India's top court upholds legality of 2016 currency ban
India’s top court says the government’s surprise decision in 2016 to demonetize high-value bills was legal and taken after consultation with India’s central bank
NEW DELHI (AP) — India’s top court said Monday that the government’s surprise decision in 2016 to demonetize high-value bills was legal and taken after consultation with India's central bank.
The five-judge constitution bench was hearing petitions challenging the currency ban that rendered 86% of India’s currency invalid without warning. They contended that the move was not a considered decision of the government and should be struck down by the court.
Four judges on the five-member bench said the government made the decision after consulting with the Reserve Bank of India and stated there was no flaw in the decision-making process.
Justice BV Nagarathna, however, gave a dissenting judgment, calling the decision “unlawful" and “an exercise of power, contrary to law." She said the currency ban could have been carried out through an act of Parliament, not by the government.
