Hyderabad: Petitioners who questioned the decision of the Centre to demonetise Rs 500 and Rs 1,000 rupee notes on Thursday told the Hyderabad High Court that the decision was contrary to Section 26 (2) of the Reserve Bank of India Act.
A division bench comprising Acting Chief Justice Ramesh Ranganathan and Justice A. Shankar Narayana was hearing petitions moved by K. Srinivas, a practicing advocate and S. Venkateswara Rao, a resident of the city, challenging the demonetisation decision.
Vedula Venkata Ramana, senior counsel appearing for Mr Venkateswara Rao contended that the decision of the Centre infringes upon the Rights guaranteed to the people under Article 300 (A) of the Constitution.
While telling the court that Article 300 (A) defined the currency as a property, senior counsel said that Section 26 (2) of the Reserve Bank of India Act gives power to the Centre to demonetise currency of a specific series that too when the RBI recommends so.
He said that the Centre unilaterally took the decision to demonetise Rs 500 and Rs 1,000 notes, without reference to the series. Explaining the severe hardships being faced by the people for the past two weeks after the demonetisation notification on November 8, senior counsel questioned the point in bringing Rs 2,000 note when the Government of India claimed that it was demonetising Rs 500 and Rs 1,000 notes to curb black money and also stop circulation of counterfeit currency.
Maintaining that Rs 2,000 notes gives more scope for black money, he said the currency has no expiry period like medicine and the decision of demonetisation was nothing but infringing upon the right of the citizens to protect and save their earnings. The arguments will continue on Friday.
