Fulfil commitment of Rs 24k weekly withdrawal: SC to Centre

The Supreme Court today asked the Centre to "fulfil their commitment" of permitting withdrawal of Rs 24,000 per week to the extent possible and review the decision periodically.
A three-judge bench headed by Chief Justice T S Thakur noted the submissions of Attorney General Mukul Rohatgi who had said government has already made it amply clear that it would take around 50 days time to streamline the cash flow and the period is "still not exhausted".
The bench, also comprising Justices A M Khanwilkar and D Y Chandrachud, referred to Rohatgi's submissions in which he had said that authorities are working to the best of their ability to defuse the cash flow crisis by printing new notes and old demonetised notes would be replaced by new legal tender of Rs 2000 and Rs 500 "progressively in right earnest".

"Considering the stand taken by the Attorney General, we may commend to the authorities to fulfill their commitment made in terms of the stated notification permitting withdrawal of Rs 24,000 per account holder of the bank per week to the extent possible and review that decision periodically and take necessary corrective measures in that behalf," the bench said.
The bench noted the arguments of the Attorney General that as of now, the Reserve Bank of India (RBI) has been able to infuse around Rs five lakh crore of new legal tender in the the denomination of Rs 500 and Rs 2,000 which is almost "over 40 per cent of the amount of demonetised notes already deposited with the banks".

The petitioners, who have challenged the November 8 demonetisation notification, had raised the issue of denial of right to withdraw Rs 24,000 per week despite RBI's directive permitting such withdrawal.

The counsel for the petitioners had contended that banks are refusing to pay full amount of Rs 24,000 per week on the ground of non-availability of new currency.
The Attorney General had told the bench that maintaining "complete secrecy" on the November 8 decision was "imperative" due to the nature of decision taken by the government as it was aimed to unearth black money or unaccounted money and to dry up the terror fund and defeat the attempt of circulation of large-scale counterfeit currency.

He had said that due to these reasons, new currency notes could not be printed well in advance.