The Bombay High Court’s Order to RBI: A Victory for Justice
In a recent ruling that has brought relief to a group of individuals from Kolhapur, the Bombay High Court has directed the Reserve Bank of India (RBI) to accept old demonetised bank notes that were seized by the Income Tax Department. This decision comes after a long legal battle that stemmed from a raid conducted shortly after the demonetisation policy was implemented.
The group of individuals had a total of ₹20 lakh in old demonetised bank notes that were confiscated during a raid by the Income Tax Department in December 2016. The timing of the raid, just before the deadline to deposit the invalidated notes, left the individuals in a difficult situation. Despite the assistance director of income tax deciding not to retain the cash and ingots, the money was returned to the petitioners after the deadline had passed, rendering them unable to deposit the funds with the RBI.
Faced with a bureaucratic hurdle due to missing the deadline, the group sought legal recourse through advocate Udaya Sankar Samudrala. The petitioners argued that they should not be penalized for circumstances beyond their control, emphasizing that the funds were seized from them and not voluntarily withheld. Senior advocate Venkatesh Dhond, representing the RBI, countered by citing the Specified Bank Notes (Cessation of Liabilities) Act, 2017, and a subsequent notification from the Ministry of Finance, which required the submission of serial numbers for the specified bank notes for exchange.
The crux of the legal debate revolved around the failure of tax and police officers to record the serial numbers of the bank notes during the seizure, leading to a deadlock in the exchange process. The petitioners maintained that this oversight should not impede their right to deposit the demonetised notes and receive the equivalent value in legal tender.
After a thorough review of the case, a division bench consisting of Justice A.S. Chandurkar and M.M. Sathaye delivered a verdict in favor of the petitioners. The bench acknowledged the extenuating circumstances that prevented the individuals from meeting the initial deadline and emphasized their right to deposit the demonetised notes for the full value of ₹20 lakh. The court further instructed the petitioners to complete the deposit within one week and directed the RBI to expedite the verification process to facilitate the exchange.
This ruling by the Bombay High Court serves as a testament to the importance of upholding justice and fairness, even in the face of bureaucratic challenges. It underscores the need for accountability and procedural diligence to ensure that individuals are not unjustly penalized for circumstances beyond their control. In a society where legal battles often pit individuals against powerful institutions, this decision stands as a beacon of hope for those seeking redress against administrative hurdles.
As the petitioners prepare to finalize the deposit and receive the value of their demonetised bank notes, this ruling marks a significant milestone in their quest for justice and financial restitution. It highlights the vital role of the judiciary in safeguarding the rights of individuals and holding institutions accountable for their actions. In a world where legal battles can often seem daunting and insurmountable, this case serves as a reminder that justice prevails when fairness and equity are upheld.
