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Withdrawal of Rs 2,000 notes statutory exercise not demonetisation: RBI tells Delhi HC

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The withdrawal of Rs 2,000 banknotes is a statutory exercise, not demonetisation, the Reserve Bank of India (RBI) told the Delhi High Court on Tuesday.

The high court was hearing a petition challenging the decision by the RBI and SBI that enables the exchange of Rs 2,000 notes without the requirement of an identity proof. The plea filed by Advocate Ashwini Kumar Upadhyay said the decision was arbitrary and against the laws enacted to curb corruption.

Responding to the plea, the RBI said the decision to enable the exchange of Rs 2,000 notes was taken for operational convenience as the withdrawal is not demonetisation but merely a “statutory exercise.”

In his plea, advocate Upadhyay said he wasn’t challenging the decision withdraw the Rs 2000 notes but the decision to exchange the said denomination without requiring any slip or identity proof. The petition argued that the exchange of currency should only be allowed through bank accounts linked with Aadhaar.

It claimed that the current arrangement would only enable mafia and gangsters like “Atiq Ahmed’s henchmen” and Maoists while arguing that today almost every poor person has a Jan Dhan account and BPL persons are also connected to bank accounts.

A Delhi HC bench of Chief Justice Satish Chandra Sharma and Justice Subramanium Prasad said an appropriate order will be passed on the plea.

Advocate Upadhyay claimed in his public interest litigation (PIL) that the notifications by the RBI and the State Bank of India (SBI) that enable the exchange of Rs 2000 notes without requiring a requisition slip and identity proof were arbitrary, irrational and offend Articles 14 of the Indian Constitution.

The PIL claimed that cash transaction in in high value currency is the main source of corruption and used for illegal activities like terrorism, naxalism, separatism, radicalism, gambling, smuggling, money laundering, kidnapping, extortion, bribing and dowry, etc. and a large amount of the currency has reached either in individual’s locker or has “been hoarded by the separatists, terrorists, Maoists, drug smugglers, mining mafias & corrupt people”.

RBI counsel, Senior advocate Parag P Tripathi argued that the emphasised that the court cannot interfere in such matters and the decision was taken to allow exchange of the Rs 2000 currency note for “operational convenience” as the said banknote is not commonly used and other denominations continue to meet currency requirements.

Advocate Tripathi said that no points mentioned by the petitioner impinge or deal with constitutional issues and as such the court cannot interfere.

On May 19, the RBI had announced withdrawal of Rs 2,000 currency notes from circulation, and said existing notes in circulation can either be deposited in bank accounts or exchanged by September 30.

However, the 2,000 notes will continue to be legal tender, it had said, adding that the notes can be exchanged for other denominations from any bank starting May 23, albeit with a limit of Rs. 20,000 per transaction.

Both the RBI and the SBI issued notifications stating that no requisition slip or identity proof is required for exchanging the Rs 2,000 notes.

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Lok Sabha clears bill to levy cess on pan masala and similar goods for health, security funding

The Lok Sabha has passed a bill to impose a cess on pan masala manufacturing units, aiming to create a dedicated revenue source for public health and national security initiatives.

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Nirmala Sitharaman

The Lok Sabha has approved the Health Security se National Security Cess Bill, 2025, paving the way for a new cess on pan masala manufacturing units. The legislation aims to generate dedicated funds for strengthening national security and improving public health, both areas identified as critical national priorities.

Bill aims to create predictable funding stream

Finance Minister Nirmala Sitharaman, responding to the debate before the bill was passed by voice vote, said that the cess will be shared with states because public health falls under the state list.

The new cess will be applied over and above the GST, based on production capacity and machinery used in units manufacturing pan masala and similar goods. The minister clarified that this cess will not affect GST revenue, and that pan masala already attracts the maximum GST slab of 40 per cent.

According to the bill text, the objective is to build a “dedicated and predictable resource stream” to support expenditure related to health and national security.

Sitharaman also mentioned that cess collection as a percentage of gross total revenue currently stands at 6.1 per cent, lower than the 7 per cent average between 2010 and 2014.

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India News

Simone Tata passes away at 95: A look at the visionary who shaped Lakme and modern retail

Simone Tata, the pioneering business leader who built Lakme and helped shape India’s modern retail sector, passed away at 95. Here’s a look at her legacy.

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Ratan Tata’s stepmother and celebrated business leader Simone Tata passed away on December 5, 2025, at the age of 95. Known for her pioneering role in building Lakme and transforming India’s retail landscape, she leaves behind a remarkable legacy that redefined Indian consumer culture.

A legacy that shaped Indian business

Simone Tata, born in Geneva in 1930, first came to India at the age of 23. Two years later, in 1955, she married Naval H. Tata and gradually became an integral part of the Tata family’s business vision. Her journey with the Tata Group began in the 1960s, when she was appointed to Lakme—then under Tata Oil Mills.

Under her leadership, Lakme quickly grew into one of India’s most trusted cosmetic brands. She rose to the position of managing director and later chairperson, introducing global formulations and modernising beauty products for the Indian market. Lakme’s rise was also rooted in a strong national vision—launched on former Prime Minister Jawaharlal Nehru’s suggestion to reduce foreign exchange spent on imported makeup.

Transforming retail through Trent and Westside

After Lakme was sold to Hindustan Lever Limited in 1966, Simone moved to Trent, where she helped build one of India’s earliest modern retail chains. This later gave birth to Westside, a brand that has become synonymous with contemporary Indian shopping culture.

She also played a key role in philanthropic initiatives, guiding organisations such as the Sir Ratan Tata Institute and supporting cultural and children-focused foundations.

Family, personal life and final farewell

Simone Tata is survived by her son Noel, daughter-in-law Aloo Mistry, and grandchildren Neville, Maya and Leah. She also drew public attention in recent years for being the only member of the Tata family to attend Cyrus Mistry’s funeral, despite the widely known strained ties between the families.

Her funeral will take place on Saturday morning at the Cathedral of the Holy Name Church in Colaba, Mumbai.

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Centre orders probe into IndiGo crisis, expects normal flight operations in three days

Amid record cancellations by IndiGo, the Centre has ordered a high-level inquiry and expects flight schedules to stabilise by Saturday, with full normalcy in three days.

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indigo

The Centre has initiated a high-level inquiry into the massive disruption of IndiGo’s operations, with the government projecting that flight schedules will begin stabilising by Saturday and full normalisation is expected within three days. The announcement comes as cancellations by the airline crossed 500 for the second consecutive day, severely impacting passengers across major airports.

Civil Aviation Minister Ram Mohan Naidu said the government has directed urgent measures to ensure swift restoration of services. Within minutes of his statement, the aviation regulator DGCA announced the formation of a four-member committee to examine the circumstances leading to the delays and cancellations.

DGCA forms committee as cancellations spark scrutiny

The DGCA said IndiGo was given sufficient time to implement revised Flight Duty Time Limitations (FDTL), yet the airline recorded the highest number of cancellations in November. The regulator added that the pattern suggested gaps in the carrier’s internal oversight and preparedness, warranting an independent probe.

The committee will review the sequence of events that triggered disruptions and recommend measures to prevent a recurrence.

Flight duty rules relaxed; minister defends move

Amid criticism from the Opposition and experts, the DGCA temporarily suspended certain FDTL rules, increasing pilot duty limits from 12 to 14 hours. The changes were widely questioned, with allegations that the government was yielding to pressure from IndiGo.

Naidu defended the decision, stating the move was taken solely to safeguard passengers and that safety standards would not be compromised.
He reiterated that passenger care and convenience remain the top priority.

Assurance of refunds, real-time updates, and support

Highlighting steps taken to ease passenger distress, the minister said airlines must:

  • Provide accurate, real-time updates before travellers leave for airports
  • Initiate automatic refunds for cancelled flights without requiring follow-ups
  • Arrange hotel accommodation for passengers stranded for extended periods

Senior citizens and persons with disabilities have been accorded special priority, including access to lounges and additional assistance. Refreshments and essential services are to be provided to all affected travellers.

Inquiry to determine accountability

The government said the high-level probe will identify what went wrong at IndiGo, establish responsibility, and recommend systemic corrections to ensure such disruptions do not occur again.

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