RBI order – Bharat Pulse News

The Bombay High Court has directed the Reserve Bank of India (RBI) to accept ₹20 lakh in demonetised ₹500 and ₹1,000 notes from a family in Maharashtra, ruling that they were unable to exchange them due to circumstances beyond their control. The judgment brings relief to petitioners who had been denied the opportunity to convert their money following the 2016 demonetisation drive. Seizure of Currency During Demonetisation Following the government’s demonetisation decision in November 2016, ₹500 and ₹1,000 notes ceased to be legal tender, with a deadline of December 31, 2016, for exchange or deposit. The petitioners, a family from Kolhapur, were in possession of ₹20 lakh in these notes when their residence was raided by the Income Tax Department on December 26, 2016. The authorities seized the cash along with other assets as part of their investigation. After concluding their probe, tax officials returned the money to the local police station on January 14, 2017, instructing that it be given back to the petitioners. However, the currency was only handed over on January 17, 2017—after the deadline for depositing demonetised notes had expired. Legal Battle Over Note Exchange When the petitioners approached the RBI to exchange the money, their request was denied due to the elapsed deadline. Left with no alternative, they moved the Bombay High Court, arguing that the delay in returning their money was beyond their control and that they should not be penalized for it. High Court Orders RBI to Accept Notes The Bombay High Court ruled in favor of the petitioners, stating that the circumstances surrounding the delay justified an exception. The court noted that since the money was under official seizure, the petitioners had no way to meet the exchange deadline. The judges stated that denying them the benefit of converting their currency would be unfair. Following this ruling, the RBI has been directed to accept the ₹20 lakh in demonetised notes and facilitate their exchange for legal tender. Implications of the Ruling This decision sets a precedent for cases where individuals were unable to exchange demonetised currency due to official procedures or administrative delays. The ruling reinforces the principle that citizens should not be unfairly disadvantaged by government-imposed restrictions when circumstances are beyond their control. The judgment also highlights the judiciary’s role in ensuring fairness in the enforcement of economic policies. With this ruling, similar cases may now have a legal basis to seek relief, ensuring justice for those affected by procedural hindrances during demonetisation.

Court Rules in Favor of Petitioners on Demonetised Notes

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