Delhi High Court Rejects PIL Challenging RBI’s Decision to Withdraw ₹2,000 Notes
The Delhi High Court has dismissed a public interest litigation (PIL) challenging the Reserve Bank of India’s (RBI) decision to withdraw ₹2,000 banknotes from circulation. The PIL, filed by petitioner Rajneesh Bhaskar Gupta, argued that the RBI lacked the authority to withdraw the currency and that only the central government could have made such a decision.
The Delhi High Court has dismissed a public interest litigation (PIL) challenging the Reserve Bank of India’s (RBI) decision to withdraw ₹2,000 banknotes from circulation. The PIL, filed by petitioner Rajneesh Bhaskar Gupta, argued that the RBI lacked the authority to withdraw the currency and that only the central government could have made such a decision.
On May 19, the RBI had announced the withdrawal of ₹2,000 notes from circulation, stating that banks would continue to accept deposits and exchanges of these notes until September 30, 2023. The petitioner contended that the RBI’s decision was “unjust, arbitrary, and against public policy,” claiming that it had not analyzed the potential problems faced by the public at large.
The petitioner also argued that small vendors and shopkeepers had already stopped accepting ₹2,000 notes, and that the RBI had not provided a clear explanation regarding the benefits to the national economy resulting from the withdrawal of these banknotes.
In response, the RBI defended its decision, stating that the removal of ₹2,000 notes was part of its currency management system and not a form of demonetization. The RBI emphasized that the ₹2,000 notes had been kept out of circulation for some time, as they were not widely used as currency anymore. The central bank also cited the deterioration in the quality of these notes over time.
After hearing the arguments from both parties, a bench comprising Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad dismissed the PIL, stating, “Dismissed.” The detailed copy of the judgment is awaited.
This decision follows a previous dismissal by the court of a plea challenging the RBI’s permission for exchanging ₹2,000 currency notes without any identity proof. In that case, the court ruled that the government had allowed the exchange to facilitate a smooth transition to other denominations and to avoid inconvenience to citizens.
The dismissal of the PIL by the Delhi High Court upholds the RBI’s authority to withdraw ₹2,000 banknotes from circulation. While the court’s detailed judgment is awaited, this decision reinforces the central bank’s power in managing the country’s currency and supports its efforts to streamline the currency system.
Sources By Agencies
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