India’s Supreme Court upheld Prime Minister Narendra Modi’s 2016 decision to overnight invalidate high-value currency notes, a decision that could provide firepower to the ruling party ahead of a series of elections in coming months.
(Bloomberg) — India’s Supreme Court upheld Prime Minister Narendra Modi’s 2016 decision to overnight invalidate high-value currency notes, a decision that could provide firepower to the ruling party ahead of a series of elections in coming months.
A five-judge panel in a majority verdict Monday said the government’s move satisfied the test of “proportionality” and the court cannot supplant the wisdom of the executive on the matter. Justice B.V. Nagarathna offered faint dissent in calling the decision to withdraw 500 ($6) and 1,000 rupee notes an “exercise of power contrary to the law” — albeit “well-intentioned” — that should have been discussed in parliament and conducted through legislation.
Demonetization, pitched by Modi as a fight against corruption, hurt businesses and livelihoods across the country and had become a political flash-point between the opposition and ruling party. Monday’s verdict could help Modi build momentum for several state elections this year and a national vote in 2024.
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The full judgment is yet to be uploaded on the court’s website. Former Finance Minister P Chidambaram tweeted that the court’s majority decision “steered clear of the question whether the objectives were achieved.”
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