Published: Mon, July 17, 2017
Health | By Jay Jacobs

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

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

"The very object of demonetisation and elimination of black money will be defeated if a window is opened for a further period.", the Centre said.

On July 4, the Supreme Court had asked the Centre to give citizens with "genuine reasons" another chance to deposit the demonetised Rs 500 and Rs 1,000 bills.

Earlier in June, the apex court observed that citizens with valid reasons - such as imprisonment - could not be deprived of an opportunity to exchange old notes, giving the Centre and Reserve Bank of India two weeks to come up with a solution.

It said that "the period November 9, 2016, to December 30, 2016, was fairly a very long period during which any one can either himself or through his authorised agent/third person could have deposited/exchanged the specified bank notes subject to following the prescribed norms".

"If opportunity is given it would defeat the goal of demonetisation and elimination of black money", Centre said in its affidavit to the top court, reported NDTV.

According to the petitioners, the Prime Minister had in his speech on November 8, 2016 assured that old currency would be accepted at select RBI outlets till March 31, 2017.

The affidavit further said that large quantities of new notes were also seized indicating the exchange of old currency cash with new currency circumventing the rules. According to the NDTV, government told the Supreme Court of India that one such window will defeat the very objective of demonetisation to curb black money from the system.

The undisclosed income detected in the above actions was of more than Rs 5,400 crore, the government said.

The prime minister, in a televised address to the nation on November eight a year ago had declared that high denomination notes of Rs 500 and Rs 1000 would no longer be legal tender.

Patel, at the meeting, is believed to have said that the RBI hadn't arrived at the final figure just because the counting was still in progress. People had till December 30, 2016 to deposit their old notes in their accounts.

The 50-day deadline to deposit the old Rs 500 and 1,000 notes in banks comes to an end on December 30. On being asked by the Parliamentary Standing Committee on Finance to reveal the amount of demonetised currency which was deposited between November 8 to December 30, RBI Governor Urjit Patel said the counting is still underway.

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