Can't give more time to deposit old notes, it defeats purpose of demonetisation: Centre to SC

The government told the Supreme Court on Monday that people cannot be given another chance to deposit old currency notes that were demonetised in November, warning that a new exchange window suggested by the top court would defeat the purpose of the exercise.

Prime Minister Narendra Modi had on November 8 announced in a surprise television broadcast that banknotes of Rs 500 and Rs 1,000 denominations would cease to be valid the following day, wiping out an estimated 86% of the cash in circulation. People had till December 30, 2016 to deposit their old notes in their accounts.

"That it is most respectfully submitted that the very object of demonetisation and elimination of black money will be defeated if a window is opened for a further period as the persons in possession of the specified bank



notes (SBNs) would have had sufficient time and opportunity to carefully plan the reasons and excuses for not depositing the SBNs within the permitted period," a government affidavit to the top court said.

The November exercise, meant to purge cash hoarded as black money, triggered unprecedented rush at banks, and the government's rivals accused it of harassing the people by mismanaging the exercise.

"Any number of benami transactions and user proxies for the purpose of producing and depositing SBNs would then arise which the departments would have great difficulty in deciding any genuine case from the numerous bogus ones," the government said to the SC, which asked the government to open another window for those who had legitimate reasons for not depositing the old notes before the deadline.