Possible reliefs from the rigours of demonetisation effect

1. DEMONETISATION-Illegality
BISWAJIT DAS, Advocate, Supreme Court of India
Managing Partner, Juris & Juris.
I opine that even if the current notification dated 8.11.2016 issued by Central Govt. under Section-
26(2) of RBI Act, 1934 through executive route may appear to be prima facie illegal on plain reading
of the language of the said Section, the said argument is not entirely safe as the same is resting on
mere technical interpretation of the language of the statute. Therefore, even if one succeed in this
argument, Central Govt. may still save the said demonetisation action through ordinance or proper
legislation route on the similar lines of 1976 demonetisation action of the then Morarji Desai Central
Govt. ultimately upheld by the Supreme Court in the year of 1996.
Therefore the present writ petitions which are filed & pending before various High Courts & before
the Supreme Court shall not succeed in their challenge on ground of ultra vires. The other major
ground such as inconvenience to the people as a feature of RIGHT TO LIFE under Article-21, RIGHT
TO FREEDOM TO CARRY BUSINESS/PROFESSION under Article-19(1)(g) also may not be that solid
ground to assail the demonetisation notification as it leaves a lot of scope for interpretation.
However, I say with responsibility that the following consequential actions of DEMONETISATION are
illegal based on unassailable legal grounds, which I have not spelt out here:
1. Notifying LIMITATION/CUT-OFF DATE to honour depositing old currency of Rs.500/- &
Rs.1000/- in Bank within 30.12.2016.
2. CAUTIONING the entire population against depositing someone else's money in one's own
account with penalty ranging from 50% to 200% & imprisonment of 7 years.
3. Authorising police, IT officials & other agencies to NAB/APPREHEND people possessing &
carrying these old currencies.
4. Forcing people to reveal the SOURCE of any of these old currencies.
5. The SURPRISE ELEMENT of giving only 4 hours before bringing into effect.
None of the existing pending WRIT petitions challenging the vires of the demonetisation notification
dated 08.11.2016 has raised the grounds which I propose & thus is extremely vulnerable in view of
the reasoning cited by me herein above.