The Delhi High Court has dismissed the Public Interest Litigation (PIL) filed against the Reserve Bank of India (RBI) and State Bank of India (SBI) notifications allowing exchange of 2000 Rupee Currency notes without proof of identity, upholding the impugned notifications.
Lawyer Ashwini Kumar Upadhyay had challenged the notifications issued by the Reserve Bank of India and State Bank of India regarding the exchange of Rs. 2000 banknotes without requiring a request slip or identification evidence in a Public Interest Litigation (PIL).
The Reserve Bank of India had withdrawn the circulation of Rs. 2000 banknotes after achieving its objective. During a press conference held on May 22, 2023, the Reserve Bank governor reassured the public that this should be viewed as a currency management operation and urged the public not to panic.
In response to the withdrawal of Rs. 2000 banknotes from circulation, the State Bank of India had issued a notice to all branches, stating that the exchange of these banknotes will be allowed from May 23, 2023, to September 30, 2023. It has also specified that no request slip or identification proof is necessary for exchanges up to the limit of Rs. 20,000.
The lawyer argued in the plea that this decision is arbitrary and contravenes Article 14 of the Indian Constitution. Additionally, it was suggested that to prevent the deposit of money into other individuals’ bank accounts and facilitate the identification of those involved in illicit activities such as holding black money or disproportionate assets, the RBI and SBI should ensure that only Rs. 2000 banknotes are deposited into their respective accounts.
In the hearing last week, Parag P Tripathi, representing the RBI, strongly opposed the plea and recommended dismissal of the PIL along with imposition of significant costs.
He emphasized that the current situation should not be equated with demonetization, clarifying that it is a statutory exercise. Furthermore, he asserted that the points raised by the opposing counsel, Mr. Upadhyay, do not have any impact on public concerns whatsoever.
The Division Bench of Chief Justice Satish Chandra Varma and Justice Subramonium Prasad dismissed the Public Interest Litigation (PIL), upholding the notifications of RBI and State Bank of India (SBI) allowing the public to exchange/deposit 2000 rupee notes as per existing deposit norms.
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