A 5-judge Constitution bench of the Supreme Court on Monday upheld the validity of Centre’s November 2016 decision to demonetise Rs 500 and Rs 1000 currency notes.
The five-judge bench held that demonetisation cannot be struck down on the grounds of proportionality.
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Justice B R Gavai said that Centre’s decision-making process cannot be flawed as there was consultation between RBI and government.
“We find that the three purposes are proper purposes and there was a reasonable nexus between the objects and the means to achieve the objects. Action cannot to be struck down on the basis of the doctrine of proportionality,” Justice Gavai said, pronouncing the judgement.
The period prescribed of 52 days cannot be said to be unreasonable, the Justice said.
The arguments in the case were heard by a five-judge constitution bench of the country’s top court.