Delhi HC rejects plea challenging RBI notification allowing exchange of Rs 2000 banknotes without identity proof

The Delhi High Court on Monday dismissed a plea challenging the exchange of Rs 2,000 notes without proof of identity.

A bench comprising Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad delivered its verdict in a Public Interest Litigation (PIL) filed by advocate Ashwini Kumar Upadhyay challenging the notifications issued by the Reserve Bank of India (RBI) and the State Bank of India (SBI). . to exchange Rs 2,000 notes without proof of identity.

In its May 19 notification, the RBI announced the withdrawal of Rs 2,000 notes from circulation in line with its 'clean note policy'. The notification further said that the public in possession of the Rs 2,000 note can exchange it or deposit it in banks from May 23 to September 30.

Arguing the matter in the Supreme Court, RBI's legal counsel said the decision to withdraw Rs 2,000 notes from circulation was not demonetisation and was a statutory exercise taken for operational convenience.

Upadhyay argued that the decision to exchange Rs 2,000 notes without proof of identity was against laws enacted to curb corruption. He did not challenge the RBI notification regarding the withdrawal of Rs 2,000 notes from circulation as a whole, but only the move to deposit the said notes without proof of identity in banks.

"This is the first time that people can come to banks with money and have it exchanged. Gangsters and mafia and their henchmen can come and get money exchanged,” Upadhyay said in his plea.

The High Court also seized another PIL filed by advocate Rajneesh Bhaskar Gupta challenging the RBI's decision to withdraw Rs 2,000 notes from circulation. Gupta submitted that the said decision of the RBI is unfair, arbitrary and against public policy and that the RBI has no statutory authority to take such a decision and only the Central Government has such authority.