Notes issue is serious says CJ Thakur

For the second time in a week, the Centre has faced tough questions on the notes ban from the Supreme Court, which cautioned on Friday: “We will have riots on the streets.”

Chief Justice of India TS Thakur said petitions challenging the ban on Rs. 500 and Rs. 1,000 notes indicate the magnitude of the problem.

“You have scrapped 500 and 1,000, but what happened to the 100 rupee note?” the Chief Justice asked the government, referring to the daily scramble for cash across the country and the punishing queues outside banks and ATMs.

ATMs, the government replied, need to be recalibrated because they have a “single drawer” for Rs. 100 notes. For thousands, this has meant that cash dried up long before they could reach the top of the line after several hours.

The court had more questions on the currency ban announced suddenly by Prime Minister Narendra Modi on November 8 to check tax evasion and black or untaxed money. In the past 10 days, there have been several additional announcements to ease the crisis for people.

“The last time you said you are working out relief but you have reduced the withdrawal amount to 2,000. What’s the problem? Is it a printing problem?” Justice Thakur asked the government.

The government earlier this week reduced the Rs. 4,500 limit for the exchange of notes at banks to Rs. 2,000, saying it would enable more people to get cash.

Attorney General Mukul Rohatgi said: “Not only printing… it has to be transported to lakhs of branches across the country and ATMs have to re-calibrated.”

Mr Rohatgi added that the government did grant relief to farmers, families planning weddings and small traders.

Representing one of the petitioners, senior lawyer Kapil Sibal, a senior Congress leader, alleged that people in villages and in the northeastern states are unable to withdraw money.