New Delhi: Justice BV Nagarathna stated that the government notification on demonetisation in 2016 was 'unlawful' in her dissent ahead of the Supreme Court Constitution bench on Monday.
According to a report in NDTV, she agreed with the petitioners those challenged the notification of November 8, 2016 and upheld the demonetisation decision took by the central government as per section 26 of the Reserve Bank of India Act.
The bench had a 4:1 majority on her verdict.
'Demonetisation was unlawful,' says Justice BV Nagarathna
"In my considered view, action of demonetisation by November 8 notification was unlawful. But status quo ante cannot be restored now since it was in 2016," said Justice BV Nagarathna, adding that demonetisation was "an exercise of power, contrary to law, and therefore unlawful".
She further claimed that the manner in which it was implemented was not in accordance with law. As per the RBI Act, recommendation realeted to demonetisation should originate from the board of the Reserve Bank of India but in this case the government wrote a letter to RBI advising for the same on November 7.
No independent application for demonetisation sent by RBI
"After perusing the documents and records submitted by Centre and RBI, phrases like "as desired by Centre government" shows there was no independent application of mind by RBI," said justice BV Nagarathna in her arguement against the bench.
