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Demonetisation valid: Supreme Court Constitution Bench approves move to demonetise Rs 1000, Rs 500 notes

Prime Minister Narendra Modi’s 2016 note ban was supported by the Supreme Court today, which ruled that the decision making process cannot be faulted merely because the proposal was made by the Central Government.

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Prime Minister Narendra Modi’s 2016 note ban was supported by the Supreme Court today, which ruled that the decision making process cannot be faulted merely because the proposal was made by the Central Government.

Demonetisation cannot be invalidated due to lack of proportionality, said Justice Gavai.

The Central Board of RBI and the centre had a six-month-long conversation before the centre was obligated to act, according to the judges.

The centre’s decision to outlaw 1,000 and 500 rupee currencies in November 2016 was contested through petitions. The action caused the overnight wiping out of 10 lakh crore currencies.

The Supreme Court received 58 petitions contesting the banning of notes, contending that the government should not have made such a hasty decision and that the ban should be overturned.

The administration maintained that a case cannot be decided by the court if no real relief can be given. According to the centre, it would be like turning back the clock or unscrambling a scrambled egg.

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Chairman of the Constitution Bench will retire two days after the verdict

The five-judge bench hearing the case includes Justices S Abdul Nazeer, BR Gavai, AS Bopanna, V Ramasubramaniam and Justice BV Nagaratna. Justice S Abdul Nazeer, who is heading the constitution bench, will retire on January 4, 2023, two days after the verdict is pronounced. According to media reports, two judgments are to be read in the constitution bench, which have been written by Justice BR Gavai and Justice BV Nagaratna.

Argument in petition – no right to cancel currency

The petitioners in this case contend that Section 26(2) of the Reserve Bank of India Act does not authorise the government to completely cancel currency notes of a particular denomination. Section 26(2) empowers the Center to cancel currency notes of a particular series and not the entire currency notes.

Demonetisation implemented to deal with black money: Centre

In the Supreme Court, the government defended the decision of demonetisation, saying that it was part of planning and an effective way to deal with problems like fake currency, terror funding, black money and tax evasion. This was the biggest step in the series related to changes in economic policies. The Centre had also said that the decision of demonetisation was taken only on the recommendation of the Central Board of Directors of the Reserve Bank.

Government mentions benefits of demonetisation in court

The Centre in its reply also said that demonetisation has brought many benefits like reduction in fake notes, increase in digital transactions, detection of unaccounted income. In October 2022 alone, a digital transaction of 730 crores took place, that is, a transaction of Rs 12 lakh crores has been recorded in a month, which was 1.09 lakh transactions in 2016, i.e. about Rs 6,952 crore.

PM Modi had announced demonetisation on Nov 8, 2016

On November 8, 2016, Prime Minister Narendra Modi announced the banning of 500 and 1000 rupee notes from 12 midnight in the name of the country. At that time, the government expected that at least Rs 3-4 lakh crore of black money would come out from demonetisation. However, only Rs 1.3 lakh crore of black money came to the fore in the entire exercise.

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Pawan Khera faces fresh setback as Supreme Court refuses relief in passport row case

Congress leader Pawan Khera faces fresh setback as Supreme Court refuses interim relief and directs him to seek bail from Guwahati High Court.

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Pawan Khera

Congress leader Pawan Khera suffered another legal setback on Friday after the Supreme Court of India declined to extend protection in a case linked to his remarks about Himanta Biswa Sarma’s wife.

A bench of the apex court refused to interfere with an earlier order that had stayed the transit anticipatory bail granted to Khera by the Telangana High Court. This decision leaves the Congress leader open to possible arrest by Assam Police in connection with the case.

During the hearing, Khera’s counsel sought interim protection, but the court declined the request and advised him to approach the appropriate court in Assam for relief. The bench clarified that the Guwahati High Court should decide any bail plea independently and on its merits.

“Am I a terrorist?” remark during hearing

While seeking protection, Khera’s legal team expressed concern over the urgency of the situation. In court, his counsel remarked, “Am I a terrorist?” highlighting the plea for temporary relief until a fresh bail application could be filed.

The Supreme Court also raised concerns over the submission of incorrect documents during the proceedings, adding another layer to the legal complications faced by the Congress leader.

Case linked to remarks on CM’s wife

The case stems from a press conference held earlier this month, where Khera made allegations regarding the citizenship status and financial assets of the Assam Chief Minister’s wife, Riniki Bhuyan Sharma.

He had claimed that she possessed multiple passports and owned undisclosed overseas properties. These allegations were strongly denied by the Chief Minister’s family, who termed them fabricated and misleading.

Legal battle intensifies

Earlier, the Telangana High Court had granted Khera temporary transit anticipatory bail, allowing him time to seek relief from a competent court in Assam. However, the Supreme Court stayed that order following a challenge by Assam authorities, escalating the legal battle.

With the latest ruling, Khera is now expected to move the Guwahati High Court for anticipatory bail as the case continues to unfold.

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Congress suspends 5 Haryana MLAs over cross-voting in Rajya Sabha polls

Congress suspends five Haryana MLAs for cross-voting in Rajya Sabha elections, citing serious indiscipline and anti-party activities.

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The Congress has suspended five of its MLAs in Haryana for cross-voting during the recent Rajya Sabha elections, taking disciplinary action over what it described as “anti-party activities”.

The move came after the state unit reviewed the conduct of certain legislators during the polls, where some were found to have voted against the party’s authorised candidate.

Five MLAs suspended after disciplinary process

According to party sources, the MLAs were issued show-cause notices seeking an explanation for their actions. After reviewing their responses, the Congress disciplinary committee recommended suspension.

The decision was approved by the party leadership, including Congress president Mallikarjun Kharge, and has been implemented with immediate effect.

Party calls it ‘grave indiscipline’

Haryana Congress chief Udai Bhan said the action was necessary to uphold party discipline, stressing that defying the official party line during elections weakens organisational unity.

He said the party takes such violations seriously and will continue to act against any form of indiscipline.

Leadership backs strict action

Senior Congress leader and Leader of Opposition Bhupinder Singh Hooda supported the decision, saying it was taken after due consideration.

He noted that while Rajya Sabha elections are conducted through an open ballot system, allowing legislators some flexibility, the party retains the authority to initiate internal disciplinary action in cases of deviation.

Background

The action follows cross-voting reported during the recent Rajya Sabha elections in Haryana, which led to internal concerns within the party. The development has highlighted organisational challenges and prompted the leadership to take corrective steps to reinforce discipline.

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Harivansh set to be elected Rajya Sabha Deputy Chairperson unopposed

Harivansh is set to be elected unopposed as Rajya Sabha Deputy Chairman after no opposition nominations were filed before the deadline.

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Former Rajya Sabha Deputy Chairman Harivansh is set to be re-elected to the same post unopposed in the election due to be held later today.
The date has been fixed by the Chairman under the relevant rules governing the conduct of business in the Upper House.
According to sources, the deadline for submitting motions for the election was 12 noon on April 16. A total of five notices were received within the stipulated time, all proposing Harivansh for the post.

Multiple nominations, single candidate
The motions were submitted by members across parties, including Jagat Prakash Nadda, Nitin Nabin, Nirmala Sitharaman, Sanjay Kumar Jha, and Jayant Chaudhary, each backed by seconding members.
All five motions explicitly state that Harivansh be chosen as the Deputy Chairman of the Rajya Sabha.

No opposition nomination filed

Notably, no motion was submitted by the Opposition before the deadline. This effectively clears the path for a unanimous election, as there is no contest for the position.
As per parliamentary procedure, motions will be taken up one by one. Once any one motion is adopted by the House, the remaining motions will not be put to vote.

Likely to be elected by voice vote
In line with established practice, the first motion — expected to be moved by Nadda — may be adopted through a voice vote. Following this, the Chairman will formally declare Harivansh as elected Deputy Chairman.
After the declaration, Harivansh will be escorted to the Chair by members from both the Treasury and Opposition benches, adhering to parliamentary convention.

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