Appearing for some petitioners, former finance minister and a staunch critic of demonetisation, P Chidambaram, termed it a mindless exercise that caused extreme hardship to citizens - who stood in queues before ATMs for long hours to withdraw small amounts, could not buy medicine, get wages and lost jobs. As such, the demonetisation failed to achieve the objectives of blocking black money, terror funding, and fake currencies, he said.
Chidambaram said generally, the government takes demonetisation decisions on the RBI board's recommendations. "But it was the reverse that happened. On November 7, 2016, the government wrote to the RBI seeking recommendation for demonetising Rs 500 and Rs 1,000 currency notes. The RBI board hurriedly met the next day at Delhi. Its recommendation was sent to the cabinet, which was already in a meeting. The meeting accepted the recommendation and the notification was issued," he said.
"Why this supersonic hurry to demonetise? Was there any deliberations about the pros and cons? The court must ask the government to produce the November 7 letter, the agenda paper before the RBI board, and the recommendation. None of these vital documents were placed before Parliament or put in public domain. We should know what the government had in mind," the veteran Congress leader said.
Attorney general R Venkataramani said, "If and when required, the government will show these documents. But is it necessary for the court to carry out an academic exercise when the decision has worked itself out? The court would be required to go into a web of entangled aspects that is considered before the government takes an economic policy decision. Should the court step into such an area? Economy is no longer only domestic, it has got intrinsic connections with the global economy."
The bench told the AG, "You cannot keep the documents away from the court's scrutiny. Keep the papers with you. If we need to look into them, we will."
Solicitor general Tushar Mehta said individual grievances arising from demonetisation could be looked into by the court but the larger issue has become academic. He said, "The decision was taken keeping in view emergent requirements to stop funding terrorist activities, black money, and fake currencies. The November 8, 2016 notification has worked itself out."

'A mindless exercise that caused extreme hardship'

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