When the government declared high-denomination currency notes as not being legal tender in 1978, it did so through an Ordinance.In contrast, the November 8 and subsequent notifications came without any legislative support.
IT IS NOT WITHOUT SIGNIFICANCE THAT NONE of the Central government’s notifications since November 8 relating to the old currency notes of Rs.500 and Rs.1,000 ceasing to be legal tender has used the word “demonetisation” to describe it. The reason perhaps is that calling it so would make it imperative for the government to explain why it did not follow the legal obligations associated with it.
In 1978, when the government declared high-denomination currency notes as not being legal tender, it did so through an Ordinance. The Ordinance, and the Act that replaced it (the High Denomination Bank Notes (Demonetisation) Act, 1978), described it as “demonetisation”. In contrast, the November 8 and subsequent notifications were devoid of legislative support. The absence of legislative backing meant that the government could not declare illegal the transfer and receipt of these high-value currency notes to all entities or persons other than banks as had been prohibited by the 1978 Act. Legally, such a prohibition would require legislative backing in the form of Ordinances or Acts passed by Parliament.
No doubt, the many exceptions the government provided were aimed at easing the inconvenience caused to the public. But the exceptions, according to many reports, also helped legitimise the unaccounted-for money. The 1978 Act had penal provisions, with prison terms extending up to three years or a fine or both, to punish those depositing unaccounted-for currencies by making false declarations. As imposition of prison terms would again require legislative backing, the recent notifications merely impose penalties. The non-recourse to the legislative route to “demonetise”, therefore, raises disturbing questions about the government’s intentions.
FUNDAMENTAL RIGHT
This story is from the December 23, 2016 edition of FRONTLINE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 23, 2016 edition of FRONTLINE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How Not To Handle An Epidemic
The lockdowns were meant to buy time to put in place appropriate health measures and contain the coronavirus’ spread, but they have failed to achieve the objective and heaped immense misery on the marginalised sections of society. India is still in the exponential phase of the COVID-19 infection and community transmission is a reality that the government refuses to accept.
Tragedy on foot
As the COVID-19-induced lockdown cuts the ground beneath their feet in Tamil Nadu, thousands of migrant workers are trudging along the highway to the relative safety of their upcountry homes.
Sarpanchs as game changers
Odisha manages to keep COVID-19 well under control because of the strong participation of panchayati raj institutions and the community at the grass-roots level under the leadership of Chief Minister Naveen Patnaik.
Scapegoating China
As the COVID-19 death rate spikes and the economy tanks in the United States, Donald Trump and his advisers target China and the World Health Organisation with an eye to winning the forthcoming presidential election.
New worries
Kerala’s measured approach to the pandemic and lockdown has yielded results. But it still has to grapple with their huge economic impact on its economy, which it feels the Centre’s special financial relief package does little to alleviate.
No love lost for labour
Taking advantage of the lockdown and the inability of workers to organise protests, many State governments introduce sweeping changes to labour laws to the detriment of workers on the pretext of reviving production and boosting the economy.
Capital's Malthusian moment
In a world that needs substantial reorienting of production and distribution, Indian capital is resorting to a militant form of moribund neoliberalism to overcome its current crisis. In this pursuit of profit, it is ready and willing to throw into mortal peril millions whom it adjudicates as not worth their means—an admixture of social Darwinism born of capital’s avarice and brutalism spawned by Hindutva. .
Understanding migration
When governments and their plans are found to be blatantly wanting in addressing reverse migration, exercises such as the Ekta Parishad’s survey of migrant workers throughout India can be useful to work out creative long-lasting solutions.
Waiting for Jabalpur moment
The Supreme Court’s role in ensuring executive accountability during the ongoing lockdown leaves much to be desired. Standing in shining contrast is the record of some High Courts.
An empty package
The Modi regime, which has been unable to control the COVID-19 infection, restore economic activity and provide relief to millions exposed to starvation, trains its sights on Indian democracy, making use of the panic generated by fear and a lockdown that forecloses paths of resistance.
