New Delhi, Dec 16: The Supreme Court on Thursday asked the government how some individuals had access to large piles of new currency when banks refused customers even their weekly quota of Rs 24,000, post demonetisation.
“How are crores in new currency being seized every day when you have been citing cash crunch... You yourself have been arguing that banks are not able to give even Rs 24,000 to every person,” a three-judge bench presided over by Chief Justice T S Thakur asked Attorney General Mukul Rohatgi.
The bench, also comprising Justices A M Khanwilkar and D Y Chandrachud, wondered at reports of huge piles of new banknotes being seized by authorities.
“Has your Rs 5 lakh crore (which the government claimed to have printed in new currency) gone the same way? We are asking you this because people are complaining they have not been able to see this money,” the bench said.
Rohatgi, for his part, submitted, “The Government of India cannot sit in every bank. Bank managers have done this fraud and they are being nabbed.”
He pointed out the arrest of Axis Bank managers following the crackdown by authorities. “We cannot be blamed if the bank managers have done it,” he contended.
“Seventy years of change would need at least 70 days. It is a revolution that we are talking about. It will deal with terrorism, black money, counterfeit and many such evils. This has to be a gigantic exercise.”
Rohatgi said a total of Rs 7.5 lakh crore in cash, including Rs 5 lakh crore in new currency, has so far been made available for transaction. He also claimed that the problem of cash would end very soon.
During the hearing, the bench also asked the government about its apprehension on the further use of demonetised Rs 500 and Rs 1,000 notes, at least in government hospitals, till the time new currency is made available in sufficient quantity.
Rohatgi claimed issues of such kind fell under the domain of executive policy. He pointed out that certain petrol pumps deposited only Rs 500 and Rs 1,000 notes in banks after exemptions were allowed. The court also sought to know about the time frame for cooperative banks to deposit Rs 8,000 crore collected by them within three days of demonetisation.
The court reserved its order on a plea for passing some interim directions on a batch of petitions.
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