Supreme Court says post-demonetisation situation serious, there could be riots.

The Supreme Court questioned on Friday the government’s move to reduce the exchange limit of old notes from Rs 4,500 to Rs 2,000, saying the situation was serious and there could be riots.

The court, which came down hard on the Modi government, also refused its request to put on hold petitions pending in various high courts challenging the decision to scrap Rs 500 and Rs 1,000 banknotes that have led to a scramble for cash across the country.

“We asked you to give some relief but you have reduced the exchange limit,” the court said, referring to the previous hearing when it asked the government to ensure that people were not inconvenienced.

“Is there a printing problem?” Chief Justice of India TS Thakur asked attorney general Mukul Rohatgi.

The Centre was facing problem in moving cash to banks, ATMs and post offices, the government’s top law officer said. He also said it was not possible for the government of giving Rs 100 notes to everyone.

The government’s surprise decision to scrap high-value currency has led to cash chaos in the country, with snaking queues outside banks and ATMs even after 10 days of the decision. The high-value notes accounted for 86% of the currency in circulation.

Multiple petitions reflected the scale of the problem, the court said, adding it might move pleas pending in various high courts to the one in Delhi.

Adjourning the matter for November 25, it asked the attorney general to move transfer petitions, which the court would consider.

The Centre on Thursday reduced to 2,000 the limit for the one-time exchange of old notes in a fresh list of measures to ease the cash crunch.

The government, which has limited cash withdrawals, has struggled to keep up with the demand for cash. Several people have complained that banks were giving them Rs 2,000 notes that were of little use in face of the currency shortage.

Rohatgi also clashed with Kapil Sibal who is representing one of the petitioners to have challenged the demonetisation move. He accused Sibal, a senior Congress leader, of turning the court into a political platform.

As Rohtagi listed steps taken by the government, Sibal said if the AG was to be believed then “there is swarg (heaven) outside”. “I can’t be denied my legitimate money of which the government is a trustee,” Sibal said.

Opposition parties, including the Congress, have accused the Centre of imposing economic emergency. The two sides have clashed in Parliament as well, with the opposition demanding that Prime Minister Narendra Modi, who announced demonetisation decision on November 8, be present in the House to answer their queries.

Source:- Hindustan Times.