Notes Ban: Supreme Court To Hear Pleas Challenging Constitutional Validity

The Supreme Court will tomorrow hear pleas challenging the constitutional validity of demonetisation six years after the controversial move by Prime Minister Narendra Modi. A five-judge Constitution bench headed by Justice Abdul Nazeer will hear the pleas tomorrow.

In total, four constitutional benches will preside tomorrow.

The bench is expected to fix the date of a detailed hearing. The matter was referred to the Constitution Bench on December 16, 2016, but the bench was yet to be constituted.

In a sudden address to the nation on November 8, 2016, Prime Minister Narendra Modi had announced that starting midnight, existing Rs 500 and Rs 1,000 notes could no longer be used for any transactions. Amid massive public outcry, the government struggled to recount the benefits of the move.

Opposition parties had slammed the move, saying it was reckless and wrecked the Indian economy. 

The PM's announcement meant that within a few hours, 86 per cent of the cash in circulation was pulled. A shortage of currency forced long lines at banks as people queued up to return old notes or exchange them for the new Rs 500 and Rs 2,000 notes.

The Prime Minister had said demonetisation was an opportunity where every citizen can join a "mahayajna" against corruption, black money and fake notes.

However, despite the promise to reduce cash transactions, the value and volume of notes in circulation has continued to increase since the November move.