Demonetisation: Relaxing Deadline For Exchanging Old Notes May Create Chaos, Says Supreme Court

New Delhi: Letting people deposit demonetised currency after expiry of the law-mandated deadline may create a "chaos", the Supreme Court said on Monday.

A bench headed by Chief Justice of India Dipak Misra observed that it was not proper to deal with individual cases for a fresh window to permit petitioners deposit old Rs 500, 1000 notes after last year's December 30 deadline.

"If we start taking and allowing individual cases, it may create a chaos. We can't do that," observed the bench, as it shot down a plea by woman, holding an Overseas Citizens of India (OCI) Card.

The petitioner's lawyer submitted that Indians abroad were given time till March 31 to deposit old notes whereas this deadline was till June 30 for the NRIs, subject to certain conditions.

Seeking a permission to deposit demonetised notes with the RBI, the petition cited difficulties as to why the woman could not make the deposit within stipulated time limit.

But the bench replied: "When the law gave you a specified time, you should have done it within the time limit. We can't reopen everything like this."

It added that the validity of the Specified Bank Notes (Cessation of Liabilities Ordinance) Ordinance, 2016 was already pending before a Constitution Bench.

"Let the Constitution Bench decide the validity of the law and you can see after our judgment whether you can get the benefit of it or not," it said.

The Court had on December 17 referred to a five-judge Constitution Bench a clutch of petitions, which had challenged the legality of the government’s demonetisation move and the notifications and ordinance passed under it. The Constitution Bench, however, is still to start hearing the case.

On the issue of inconvenience to people, the Court had asked the government to reconsider a new window for allowing people to deposit old Rs 500, 1000 notes. But the government said that people cannot be given another chance to deposit old currency notes since a new exchange window suggested by the top court would defeat the purpose of the exercise.