Following two weeks of utter chaos, the Supreme Court of India refused to stay the November 8 government notification demonetising Rs 500 and 1,000 currency notes.
However, a bench comprising Chief Justice TS Thakur and Justice DY Chandrachud asked the Centre to take immediate measures to alleviate the hardships and sufferings of the traumatised common man who is “forced” to stand in queues to withdraw a little bit of his own money.
“Tell us, instead of forcing citizens to stand in queues for his own money... and it is traumatic for people to stand in lines for hours doing nothing. Why can’t you raise their cash withdrawal limit to a reasonable limit?” asked Chief Justice Thakur.
He stressed that the apex court does not want to interfere with the government’s economic policy and said that while the objective of the move may be a “surgical strike” on black money, it should not cause hardship to the common man.
Appearing for one of the four petitioners, Senior Advocate Kapil Sibal said what is portrayed as a surgical strike on black money, is actually a “carpet-bombing of the common man”.
CJ Thakur asked, “Carpenters, masons, daily wage earners, maids, vegetable sellers are dependent on cash; we are only wondering if you are capable of doing anything to reduce the trauma of ordinary man?”
The bench asked the Centre to file an affidavit by November 25, detailing the various measures it can take to lessen the hardship and inconvenience caused to people without hindering the larger objective of the government notification.
“After demonetisation, the black money hoarders do not even have the money they once used to have in their pyjamas,” Advocate General Mukul Rohatgi submitted. He argued that the only argument raised against demonetisation is “inconvenience”.
“Some collateral damage will take place. I could not calibrate the 200,000 ATMs that would have brought the cat out of the bag. I could not print or keep the new money in godowns. There is some pain, we understand. But our objective is to wipe out black money and end terror financing. Though it is not in our or anybody’s interest to have people wait in queues, I have to say that for 50 years, when others were in power, we used to wait for our Fiat car, gas and phone connection... We waited. Now, people are willing to wait.”
He said the “poor man” does not anyway have excess cash. “Poor man does not have Rs 2,000,000.” He submitted, “Indians are intelligent. They booked air tickets and train reservations with their black money only to withdraw them in new notes,” adding that though there is “some pain”, people can make transactions through Paytm, cards, online transfers, etc. Sibal retorted by saying, “Paytm is a Chinese company. And yes... now we have become a truly cashless society. Nobody has any money with them.”
Major inconvenience has been caused following the notification that intended to slap corruption in the face. People are seen standing in never-ending lines outside banks and ATMs, as they scurry to deposit or withdraw their money before the government-given deadline.
The Opposition tried to make the most out of the rising intolerance of the aam aadmi, with Congress vice-president Rahul Gandhi choosing to stand in a queue himself, to withdraw money. Calling this a major scam, and blaming Modiji for informing his friends beforehand, Delhi Chief Minister and Aam Aadmi Party convenor Arvind Kejriwal demanded a Supreme Court-monitored probe into the demonetisation scheme, terming it as a “fraud” aimed at benefiting a “particular political party”.
Meanwhile, Prime Minister Narendra Modi seemed unfazed with the accusations and the whining as he said he was fully aware of the inconvenience the people of the country were facing following demonetisation.
Addressing a public meeting in Ghazipur, Uttar Pradesh, Modi said, “I know the people are facing problem but I am doing this for betterment of the country, but I am sure the people are willing to suffer a bit to clean the system. I am fighting for honesty.”
He lashed out at black money holders, especially politicians who raised their voices against the scrapping of the notes. In a veiled attack at BSP chief Mayawati, Modi said, “Some politicians love to wear garland of currency notes. They are agitated because they do not know what to do with their black money that they are holding.”
He also targeted Congress asserting leaders were hiding their own trouble by raising issues of public inconvenience. “Congress had also scrapped 25 paise once, they should tell under which law did they do so? The Congress had scrapped 25 paise according to their stature and I scrapped Rs 500, 1,000 according to my stature.”
Following the announcement, people have resorted to several desperate measures to dispose of their bundles of cash. While many chose to burn it in sacks, others thought it best to dump it in the Ganges. The weak-hearted even chose to end their own life. Then there were those who used the poor class to their interest. Workers and daily wage earners could be seen standing in line with cash in their pocket, spending the day making multiple transactions. However, the government was quick to deal with the evolving situation.
Department of Economic Affairs secretary Shaktikanta Das said banks will now start applying indelible ink on customers’ fingers similar to the election system. This is being done to prevent people from transacting multiple times at a branch.
“Customers who come to banks to withdraw or exchange or deposit cash will be marked with indelible ink to prevent them from making multiple transactions on the same day. The banks have been given operational instructions on how to differentiate between customers who come the next day and same day. This has been done to curb the queue at banks which have given rise to suspicion that some unscrupulous elements are trying to whiten their black money using third party help. This is severely restricting the facility to the needy,” he said.
He also said that Jan Dhan Yojana (JDY) accounts that have been used to deposit huge amounts of money are under close scrutiny as it is a misuse of such accounts. Das added that the government has appealed to the JDY account holders to not allow such tax evaders to use their accounts, promising that legitimate money will never come under scrutiny.
