29th May 2023, Mumbai: The Delhi high court on Monday dismissed lawyer and Bharatiya Janata Party (BJP) leader Ashwini Upadhyay’s plea challenging the Reserve Bank of India (RBI)’s permission for exchanging ₹2000 currency notes without any identity proof following the withdrawal of the highest-value currency notes from circulation.
“The plea is dismissed,” a bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad said. A detailed order was awaited.
The petitioner called RBI’s permission for exchanging the banknotes without requisition slips and identity proof arbitrary and irrational. He said it offends the Constitution’s Article 14 (equality before the law and the equal protection of the laws).
The petition said a large amount of such currency was either in lockers of individuals or has “been hoarded by the separatists, terrorists, Maoists, drug smugglers, mining mafias & corrupt people.”
On Tuesday last, the RBI opposed the petition and said that the withdrawal of ₹2000 notes was not demonetisation but a statutory exercise and that the decision to enable their exchange was taken for operational convenience.
Senior advocate Parag P Tripathi, who appeared for the RBI, emphasised that the court cannot interfere in such matters.
Upadhyay told the court that he was not challenging the decision to withdraw the banknotes but opposed the exchange without any slips or identity proof. He added the exchange of banknotes should be allowed through deposits in bank accounts.
The petition highlighted that cash transaction in high-value currency was the main source of corruption. He added it is used for illegal activities such as terrorism, naxalism, separatism, radicalism, gambling, smuggling, money laundering, kidnapping, extortion, bribing, dowry, etc. Upadhyay said the RBI and State Bank of India should ensure that ₹2000 banknotes are deposited only in bank accounts.
“Depositing ₹2000 currency notes in bank accounts would ensure that people having black money and disproportionate assets could be identified easily,” the plea said.
On May 19, the RBI announced the withdrawal of ₹2,000 currency notes from circulation. It said the notes can either be deposited in bank accounts or exchanged by September 30 and that they will continue to be legal tender.