Won't accept old notes, center tells Supreme Court

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Won't accept old notes, center tells Supreme Court

The Supreme Court on July 4 granted the Centre and the Reserve Bank of India two weeks to consider the option of granting a window to those who could not deposit their demonetised Rs 500 and Rs 1,000 currency notes for a compelling reason.

The federal government Monday filed an affidavit in the Supreme Court of India over the demonetisation row, saying it was not ready to extend the window period for depositing old currency notes.

"Any number of benami transactions and user proxies for the objective of producing and depositing SBNs would then arise... the departments would have great difficulty in deciding any genuine case from the numerous bogus ones", it said, including a detailed list of the various "malpractices" that came to light post-demonetisation.

The Union government has held before the Supreme Court that it can not give a fresh chance to people to deposit scrapped currency notes of Rs 500 and Rs 1000.

The apex court had said that people should not lose their own money for no fault of theirs.

The court was hearing petitions challenging the government's notification which disallowed people from depositing old notes after a prescribed time. There was gross abuse of the exemptions granted for use of old SBNs.

The government said that this round of demonetisation as opposed to the earlier round in 1978 had a 51-day window as opposed to a six-day window earlier.

In other words, what was permitted was exchange and or deposit of specified bank notes during a block period either in person or through authorised third person. Besides, interim transactions were also allowed through old notes as compared to the last time. However, the government said that adequate time was provided to exchange or deposit the old currency notes. Rs 15.5 lakh crore was the value of the outlawed currency - about Rs 15 lakh crore was accounted for in deposits by the end of 2016, said several reports.

On January 31 this year, the department launched "Operation Clean Money" for e-verification of cash deposits made after November 8.

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