No more grace period to deposit old currency


The Center told the Supreme Court on Monday that it took a conscious decision to not give any grace period for residents to deposit their demonetized notes after the cut-off date of December 30, 2016.w

Doing as such would have invalidated the very point of demonetization, the government said.

It was replying to the Supreme Court’s interest to open a window for genuine individuals, similar to the at death’s door and invalids, to give some examples, who were not able to deposit their demonetized ₹1,000 and ₹500 notes between November 9 and December 30 a year ago.

Noticing that these individuals had more than 51 days to deposit and exchange their old notes for the new currency through numerous outlets, the NDA government, in an affidavit recorded through the Ministry of Finance, said now there exists “no need or any justifiable reason” to give them a “grace period” until December 30, 2017, the same number of petitioners have looked for in a bundle of petitions.

“The very question of demonetization and elimination of black money will be crushed if a window is opened for a further period…,” the Center said.

“The people in possession of the Specified Bank Notes (SBNs) would have had sufficient time and chance to carefully plan the reasons and reasons for not depositing them inside the allowed period, ie, before December 30, 2016,” the Center told the court.

In addition, a grace period would again open the floodgates for benami transactions and client proxies for the depositing SBNs. “The divisions would have awesome trouble in choosing any genuine case from the various bogus ones,” the government said.

Contrasted with the 1978 demonetization exercise, where subjects were given just six days to deposit their old notes, the 2016 one gave the general population “decently a long stretch” to deposit their old notes.

The government affidavit said that dissimilar to the past experience when deposit and exchange of old notes were constrained to RBI and State Bank or nationalized banks’ workplaces, in 2016 more sorts of saving money establishments were included.

It said infiltration of the Internet and the electronic media was non-existent contrasted with the 2016 situation.

The government battled that the introduction of The Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 was a noteworthy economic step.

The government said demonetization expose the undercurrent of black money crippling the nation. Income charge strikes from April 2014 to February 28, prompted the affirmation of undisclosed income of over ₹36,051 crore alongside undisclosed assets worth ₹2,890 crore. Likewise, the Income Tax Division directed more than 15,000 surveys which brought about the identification of undisclosed income of more than ₹33,000 crore. Indeed, even some educational institutions were found to have acknowledged expenses in old currency notes after midnight of November 8.

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