No grace period to deposit demonetised notes: Centre to Supreme Court

Can't afford another window to deposit banned notes Centre tells Supreme Court

It was replying to the Supreme Court's appeal to open a window for genuine people, like the terminally ill and invalids, to name a few, who were unable to deposit their demonetised ₹1,000 and ₹500 notes between November 9 and December 30 past year. "You can not be allowed to deprive a person of his money", a bench headed by Chief Justice JS Khehar had told solicitor general Ranjit Kumar.

"In many cases, in order to avoid depositing of cash in own accounts directly, money was routed through accounts of shell companies and was layered through "intermediaries" accounts before being received in accounts of bullion traders".

Any number of "benami" transactions and proxy users for the goal of producing and depositing the old notes would then arise and the departments would have great difficulty in deciding any genuine case from the numerous bogus ones, it said, and sought dismissal of petitions seeking another chance.

The Centre backed their stand by saying if the government gives more time to deposit demonetised notes, then the goal of the whole demonetisation campaign will be of no use.

The demonetisation of Rs 500 and Rs 1,000 notes in November 2016 had caused a cash crunch in the country as the bills had made up almost 86% of the currency in circulation then.

The CJI had suggested that the government should at least have one designated authority which would give every such case of those seeking to return old notes a fresh look.

There have been instances earlier when the Chief Justice has asked the government to help genuine citizens.

The top court asked the federal government and the Reserve Bank of India (RBI), whether a window can be provided to the people who could not deposit their old Rs. 500 and 1,000 currency notes.

Following the announcement of demonetising currency notes worth Rs 500 and 1,000 in November past year, the government had instructed people to deposit their old currency notes with the RBI till December 30, 2016. However, the deadline for non-resident Indians or NRIs was 31 March, 2017 which was later extended through an ordinance till Jun 30. However, the RBI says it has still not determined the exact figure of the returned notes. The committee has given the RBI chief 15 days time to submit data on deposits of the defunct Rs 500 and Rs 1,000 bank notes.

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