Jan 02, 2023
By Jeremy Logan
The Supreme Court of India has ruled that the government’s surprise decision to demonetize high-value bills in 2016 was legal and was made after consultation with India’s central bank.
The five-judge constitution bench was hearing petitions challenging the currency ban, which abruptly removed 86% of India’s currency from circulation.
Four judges said on Monday that the decision-making process was flawless.
One judge disagreed, calling the currency ban unconstitutional.
In November 2016, India removed all 500-rupee and 1,000-rupee notes from circulation in order to combat illegal cash hoarding, fight corruption, and crack down on money laundering and terrorist financing.
The currency ban harmed the economy, resulting in months of financial turmoil for ordinary, cash-dependent Indians.