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SC to hear plea for ban on high denomination currency notes | Canindia News

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SC to hear plea for ban on high denomination currency notes

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CanIndia New Wire Service 0 comments

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New Delhi, Nov 29 (IANS) The Supreme Court will hear on December 2 a plea seeking a complete ban on Rs 500, Rs 1,000 and Rs 2,000 denomination currency notes as notes of higher denomination were fuelling black money and corruption.

The bench of Chief Justice T.S. Thakur, Justice D.Y. Chandrachud and Justice L. Nagaswara Rao agreed to hear the plea seeking ban on the higher denomination currency notes to curb the corruption and generation of black money which PIL described as the greatest menace to democracy and development of the country.

The PIL was mentioned by lawyer Ashwani Upadhyay who said that it was for the benefit of the economically weaker sections (EWS), people living below poverty line (BPL) and socially-economically disadvantaged people.

The PIL says that 78 per cent of the Indian population spends less than Rs 50 per day and they do not need high denomination currency over Rs 100.

Seeking to restrict cash transactions upto Rs 5,000, the petitioner has contended that the recall of higher currency notes will help to inculcate banking habits among the large unbanked population.

“It will move the economy from the unorganised to organised sector, dovetailing into the GST architecture that is expected to come on board next year,” said the PIL.

It further sought the scrapping of all the 56 taxes including income tax (excluding import duty) and introduction of Banking Transaction Tax (BTT) at the rate of 1 per cent on credit amount.

“Cash transaction of above Rs 5,000 should be made through banking system i.e. Cheque, DD, online and electronic and there should be no tax on cash transaction up to Rs 5,000”, says the PIL.

–IANS

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