Supreme court clarify that Demonetisation in india is totally legal
India's Supreme Court has just issued a landmark ruling that demonetisation is totally legal in India. In a 6-3 majority decision, the court has now clarified what the legality of demonetisation was and how it would be enforced. This ruling comes after months of debate over whether or not demonetisation was actually legal, and how it should be implemented if it was found to be so. In this blog post, we’ll take a look at what the Supreme Court said, explore the implications of this decision, and discuss what it means for the future of India’s economy.
India's Demonetisation
Demonetisation in India is totally legal and the Supreme Court has clarified this. The decision to demonetise was taken by the government after due consideration and consultation with the Reserve Bank of India. The main objective of demonetisation was to curb black money, counterfeit currency and terror funding.
The Supreme Court's ruling will provide some much-needed relief to the common man who has been struggling to cope with the consequences of demonetisation. It will also help restore confidence in the government's decision-making process.
The different Types of demonetisation
There are different types of demonetisation. The first type is voluntary demonetisation , which happen when government or RBI ask people to change their old currency for new currency. The second type Involuntary demonetisation , which happen when government or RBI forced the people change their old currency for new currency.
Pros and Cons of Demonetisation
When the Indian government announced it demonetisation Rs. 500 and RS.1000 currency notes in 08- November-2016, it was met with mixed reaction, some people praised the move as a strong step against black money and corruption, while other criticized it as an unfair and Inconvenient decision that caused immense hardships to Common citizens.
There are both Pros and Cons to demonetisation and it is important to weigh them both before coming to a conclusion about this complex issue.
Pros of Demonetisation
1.Strong step against black money:- one of the main aims of demonetisation was to tackle the problem of black money in India. By making high-value currency notes invalid, the government aimed to flush out udeclared or untaxed wealth from the system. This more was successful to some extent, with an estimated Rs.3 lakh core worth of black money being detected post-demonetisation
2. Curb on Corruption :- corruption is another big problem in India, and one more that is closely linked to black money which high value currency note no large number of legal tender, it became difficult for corrupt officials and politicians to hoard ill-gotten wealth in cash form. This made it easier for the government to crack down on corruption.z b b
3. Boost for digital payments system:- Another positive outcome of Demonetisation was the boost it gave to digital payments in India. With cash in short-supply, people were forced to adopt new methods of payments for transparency and accountability.
Alternatives of Demonetisation
The government of India has been taking steps to clamp down on black money and corruption. One such step is the demonetisation of high value currency notes. However, this move has been met with criticism from some quarters. Here are some alternatives to demonetisation that have been suggested.
1. Clamp down on benaami property transactions:- benaami property transactions are those in which the money, property is not the person who is shown as the owner on documents paper, this is a major route for black money to enter the system the government could clamp down on such black money transactions , money laundering by amending relevant laws and making them more stringent by India government.
2. Bring back wealth stored in abroad or Swiss bank:- It’s estimated that there are trillions of dollors worth of black money stashed away in offshore account by Indians. The India government could bring this wealth back by offering amnesty lenient taxation schemes. This would be a big blow to the black money economy.
3. Strengthen anti-Corruption laws:- The existing anti-corruption law in India are not very effective, the government could strengthen these laws and makes them more stringent so that corrupt partices are curbed effectively.
4. Increase transparency in political funding:- Political parties in India rely heavily on black money for their funding, if the funding process made more transparent, it would go a long way in curbing black money in politics.
5. Better implement of existing laws:- There are many laws aimed at combating black money.
Conclusion
In conclusion the Supreme court of India has clarified the demonetisation in India is totally legal and can be Implemented at any point of time to manage financial crisis. The supreme court has also given its approval for implementing re-monetisation process which will help in regulating the economy and stabilizing it this ruling will surely bring relief to many who were worried about their investments as well as those who were awaiting clarity on this matter. It’s important to note that while demonetisation my be preceded by some hardships, it could potentially pave the way for greater economic in future.
What is Demonetisaton?
Demonetisation is the process of the withdrawing legal tender status from a currency It’s usually done in order to combat inflation or other financial reasons. In India prime minister Narendra Modi announced on 8-nov-2016 that all Rs.500 and Rs.1000 banknotes would be withdrawn from circulation from midnight of the same day . the decision was made as an attempt to crack down on corruption black money and counter felt currency.
What happened in India
Since independence the Indian economy has been through several ups and down In recent years, India’s economy has been growing steadily thanks in part of the country burgeoning technology sector. However, this growth came to a halt in 2016. When the government implemented a nationwide demonetisation program. The sudden cancellation of high value of currency notes caused wideseperad chaos and confusion, and many businesses were forced to close their doors. The demonetisation program was intended to crack down on corruption and tax evasion but it ended up having a negative impact on the economy the supreme court of India recently nailed that the demonetisation program was legal. But it also acknowledged that the program caused significant hardships of many people.
The Aftermath of Demonetisation
When the India government announced its demonetisation policy in 2016, there were widespread confusion and panic among the public the sudden nature of the announcement meant that people didn’t have time to prepare for it , and as a result, may were left stranded without access to cash.
Is Demonetisation legal?
Yes, demonetisation in India is legal, the supreme court of india has uphold the legality of the demonetisation policy in recent ruling. The judgement was give by a five judge constitution bench headed by court justice Dipak Mishra. The bench said that right to live with human dignity and all basic necessities required for a dignified life, however it also said that right is not absolute and reasonable restriction con be placed on it in the interest of public order, morality and health. The court added that the government has to show that means adopted to achieve its objective is proportionate to the end sought to be achieved in this case, its means adopted by the government demonetisation is proportionate to its objective of curbing black money, fake currency and terrorist funding. Thus the Supreme court has held that demomonetisation in India is legal and within the powers of the government.
Why was Demonetisation controversial?
Demonetisation in India was a highly move by the government that resulted in the sudden withdrawal of all Rs.500 and Rs.1000 rupees notes from circulation. The stated goal of the policy was crack down on black money and corruption, but it caused immense hardships for millions of people who were left without access to cash the policy was also widely criticised for being poorly implemented and causing significant economic disruption.
Conclusion
The supreme court of India has clarified that the demonetisation in India is a legal practice and it upholds the government right to take such action, this ruling reinforces the fact that demonetisation was an important step taken by the Indian government to curb black money and corruption as well as promote digital payments. It also serves to reassure citizens about their rights and adds strength to our economic going forward. The verdict from the supreme court India stands treatment to its commitment to forward curbing illegal activities like tax evasion, terrorism financing, counterfeiting etc, hereby safeguarding public interest over private gains.
