No action against those holding banned currency notes, Centre tells Supreme Court

The Supreme Court on Friday disposed 14 individual petitions seeking permission to deposit banned currency notes and asked the petitioners to file plea before a five-bench Constitution bench.

The Constitution Bench shall also decide validity of the entire demonetization exercise of Narendra Modi-led BJP government.

However, no criminal action would be taken against the petitioners who were holding demonetized currency notes of Rs 500 and Rs 1000, Centre told the apex court.

The government, in its affidavit, has already told the court that people cannot be given another chance to deposit old notes as doing so would defeat the purpose of entire exercise.

Last year on November 8, Prime Minister Narendra Modi shocked the nation with his sudden announcement of demonetising the banknotes of Rs 500 and Rs 1000.

People having ceased notes were given the time till December 31, 2016 to deposit their old notes.

The entire move was aimed to eliminate the black money and counterfeit currency from cash rich India market.

However, a report by Reserve Bank of India (RBI) revealed that as much as 99 per cent of the banned currency notes came back into the banking system.