A plea has been filed in the Supreme Court against the Delhi High Court’s verdict that dismissed a petition challenging the exchange of Rs 2,000 denomination currency notes without any requisition slip and ID proof. The petitioner argues that this measure provides an “open opportunity to legalize illegal money.” The plea was originally filed by advocate Ashwini Kumar Upadhyay in the Delhi High Court but has now been escalated to the Supreme Court.
Allegations of Arbitrariness and Legalizing Illegal Money
In the petition, Upadhyay claims that the high court failed to recognize the “manifestly arbitrary and irrational” nature of the notifications issued by the Reserve Bank of India (RBI) and the State Bank of India (SBI). He alleges that the decline in circulation of Rs 2,000 banknotes, as acknowledged by the RBI, has allowed a significant amount to reach individuals’ lockers and be hoarded by criminals, corrupt officials, and politicians.
Seeking Direction and Upholding Constitutional Rights
The petitioner seeks a directive from the Supreme Court to the RBI and the SBI to ensure that Rs 2,000 notes are deposited only in bank accounts. Upadhyay argues that curbing corruption, black money generation, and ‘benami’ transactions is crucial for upholding the rule of law, the right to trade, and other constitutional rights. He accuses the recent RBI decision of enabling the conversion of black money into white and thus legalizing illicit funds.
Failure to Recognize Contradiction with Anti-Corruption Measures
The plea argues that the high court failed to recognize that the RBI and SBI notifications contradict several acts related to preventing corruption, benami transactions, money laundering, and black money. Instead of providing means to legitimize illegal wealth, the petitioner asserts that the RBI should focus on identifying black money holders.
Interim Relief Requested
As an interim relief, the petitioner requests the Supreme Court to suspend the operation of the notifications that permit the exchange of Rs 2,000 currency without requisition slips and identity proof.
Delhi High Court Verdict and Defense by RBI
The Delhi High Court previously dismissed the petition, stating that the decision to allow exchange without documentation is a policy decision of the government. The court emphasized that it should not act as an appellate authority over government decisions and that the decision does not encourage black money, money laundering, or corruption. The RBI defended its notification, stating that it was a statutory exercise for operational convenience, and the court should not interfere.
Background on Rs 2,000 Currency Notes Exchange
On May 19, the RBI announced the withdrawal of Rs 2,000 currency notes from circulation, allowing their deposit or exchange until September 30. While the notes remain legal tender, the RBI permitted their exchange for other denominations up to a limit of Rs 20,000 at a time starting from May 23. The SBI also communicated that it would allow the exchange of Rs 2,000 notes up to Rs 20,000 without requisition slips.