Highlights

  • Supreme Court called demonetisation valid
  • Note ban satisfies proportionality test: SC
  • Justice BV Nagarathna dissented on Central govt's powers

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Demonetisation verdict: Supreme Court calls Modi govt's note ban decision valid; one judge dissents

Pronouncing the verdict on 2 January 2023, the top court said that the demonetisation exercise satisfied the test of proportionality.

Demonetisation verdict: Supreme Court calls Modi govt's note ban decision valid; one judge dissents

More than 6 years after the Narendra Modi government announced the demonetisation of ₹500 and ₹1,000 notes, the Supreme Court validated the decision.

Pronouncing the verdict on 2 January 2023, the top court said that the demonetisation exercise satisfied the test of proportionality, and the period of 52 days given for exchange of notes was reasonable.

While 4 judges in the 5-judge bench endorsed demonetisation, Justice BV Nagarathna dissented, saying that the note ban could've been implemented through an act of Parliament, and not by the government.

Also read|Cong to probe post-note ban deposits if voted to power

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