Demonetisation: SC refuses to extend dates for old notes exchange

The court has refused to grant any relief to the cooperative banks and has ordered that all cases pending before the high courts be transferred to the Constitutional bench.

The Supreme Court on Friday referred the matter on demonetisation to a five-judge bench. The court also refused to extend dates for the old notes of Rs 500 and 1,000 to be used for certain essential services

The court added it is the government which is the authority on deciding whether exchange of old notes after December 30 should be allowed or not.

The bench will now decide on the legality of the decision made by the government on demonetisation.

The court also refused to pass any order stating that the government is the best judge of the economic fiscal policy. The SC also stayed all proceedings relating to demonetisation pending before the various high courts.

The SC restrained the high courts from passing any order relating to demonetisation as the matter would now be heard by a Constitutional bench. The court also ordered that all cases pending before the high courts be transferred to the Constitutional bench.

The court however refused to grant any relief to the cooperative banks. Some petitioners had questioned the government's decision of not allowing cooperative banks to accept old currency. Attorney General Mukul Rohatgi had said that the government would like to allow the cooperative banks to collect demonetised currency and deposit it in the Reserve Bank of India only after the Know Your Customer forms are filled.