The Supreme Court on Tuesday raised objections on Centre banning people with genuine reasons from depositing old Rs 500 and Rs 1,000 notes and said that the RBI and the government should consider giving grace time to those who are honest.
In November 2016, the Narendra Modi government had scrapped the use of Rs 500 and Rs 1,000 notes and had allocated a limited exchange window for people to deposit their old scrapped notes in banks.
The apex court has given two weeks to the Centre to think over the option to provide a window to those people who could not deposit their demonetised money because of valid reasons.
"There can be a situation where a person has lost his/her money for no fault. Suppose a person was in jail during the period. We want to know as to why you chose to bar such persons," the SC bench said.
The solicitor general had then sought time from the apex court to seek instructions for giving an opportunity to people to deposit their money on a case-by-case basis, according to PTI.
The government had given time till December 30, 2016, for people to exchange or deposit their old notes. The centre had also assured that if some people were unable to exchange the notes on time, they could do so until March 31, 2017, at RBI branches.
The government, however, had reversed this decision later allowing the exchange facility after December 30 to only those who were abroad and to security personnel who were posted in remote areas during the period when demonetisation came into effect.
The plea at the SC is being heard by a bench comprising Chief Justice JS Khehar and Justices DY Chandrachud and SK Kaul.
"If there has to be a window (extension for depositing demonetised notes) then all of you (petitioners and others) have to be considered," the bench had said in April.
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