Flash News: Central Government Clears Demonetization
The Central Government said on Monday in the Supreme Court that with a clear statement that people cannot get any opportunity to deposit old currency notes demonetise on November 8th, 2016. No Second Chance for providing a new window to exchange old Notes, the suggestion by the court of the first instance would have To defeat the purpose of the exercise.
No Second Chance of Exchanging old Notes
Prime Minister Narendra Modi announcement on November 8th a surprise television news that the Rs 500 and Rs 1000 notes would cease to be valid the next day, canceling about 86% of the cash in circulation. People had until December 30, 2016, to file their old notes in their accounts.
“Let it be very respectfully argue that the very purpose of demonetizing and eliminating black money can be defeat, if a window is open for a certain period of time, because the persons in possession of particular bank notes (SBN) Would have had enough time and opportunity to carefully plan the reasons and excuses for not filing the SBNs within the authorized period, “said a Central Government affidavit to the superior court.
Demonetisation in India Effect of People
The November exercise, designed to purge money accumulated in black money, triggered an unprecedented rush in the banks, and Central Government rivals accused it of harassing people by hurting exercise.
“The whole number of “benami” transactions and user proxies for the production and filing of SBNs would arise while the ministries would have great difficulty deciding on any authentic case of the many false ones,” the Central Government told the SC, which Asked the Central Government To open another window for those who had legitimate reasons not to file the old notes before the deadline.
The Supreme Court hears petitions filed by those not authorized by the Reserve Bank of India to deposit their money after the deadline.
Central Government Rejects Supreme Court Request
At the last hearing, the Chief Justice of India asked the Central Government to consider giving more time to people who could not visit the banks to deposit money for genuine reasons. He had warned the Central Government of issuing orders if he did not.
“If someone is sick and can not deposit the money if someone has a real reason, you can not deny him the opportunity to deposit the money. His money, “a bench led by Chief Justice JS Khehar had told Attorney General Ranjit Kumar.
According to the petitioners, the Prime Minister in his speech of 8th November 2016 assured that the old currency would accept only in certain outlets of the RBI until 31 March 2017. The Central Government said it leads to plug in the malpractices and irregularities observe during the first three weeks after the demonetization.
There was an unusual surge in cash – without PAN in most cases – immediately after the announcement. The invoices has divided to hide the identity of the buyers; Sales were retroactive; Receipts has indicated for advance payments on a future sale, the Central Government said in its affidavit to detail some of the ways in which people have attempted to transmit illegal money.
No Excuses on Demonetization [old Notes] Centre to Supreme Court
The affidavit cited specific cases of how the money has laundered and taken through shell company accounts and was classified in the interim accounts before that currency received into the bullion merchant accounts.
These, the Government said, have forced the Central Government to cancel or restrict exemptions granted.
As a result of raids and other strict measures on taking, more than Rs 610 crore in cash (Rs 513 crore in old banknotes) and valuables have been seizing by the IT department and other Central Government agencies.
The undisclosed income detected in the above shares was more than 5,400 crores, the Central Government said.
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