Note ban issue turning problematic, riots can happen: SC to Centre

After getting several petitions challenging the scrapping of Rs. 500 and Rs. 1,000 notes, Chief Justice of India TS Thakur said the magnitude of the problem is huge.

"You have scrapped 500 and 1,000, but what happened to the 100 rupee note?" the Chief Justice asked the government, referring to the inconveniences being faced by all citizens since Nov 8.

The Supreme Court of India, which, on Tuesday too, heard petitions challenging the demonetisation scheme introduced by the central Government, declined to stay the government order but also said the common man should not suffer, according to media reports.

The recent remark by the apex court comes on a day said when a middle-aged man reportedly died on Friday afternoon while he was standing in a queue for hours to exchange demonetised Rs 500/1000 notes in Kolkata's Metiabruz area.

The serpentine queues in front of banks and ATMs seem to not end even as 10 days passed following the decision of PM Narendra Modi on Nov 8 to abolish the Rs.500/1000 notes.

While the government is saying that there is no dearth of new currencies and that of  Rs.100 notes, the apex court has asked the Centre that where is the relief to common men that was announced.

"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."

On Thursday, the government cut the amount one can exchange over the counter to Rs. 2000.

Earlier it was set to Rs. 4500.

To put a curb on any unethical practice, banks have also been asked to use indelible ink, just like in elections, to ensure people are not exchanging more cash than is permitted.

Earlier in the day, a division bench of the Calcutta High Court directed the Central government to submit a detailed report on demonetisation before the next day of hearing in the case, which has been set on Nov 25.

While hearing a public interest litigation (PIL), filed by lawyer Ramaprasad Sarkar against the Centre's decision of scrapping Rs 500 and Rs 1000 notes, a division bench of the Calcutta HC, comprising of Chief Justice Girish Chandra Gupta and Justice Arindam Sinha, criticized the demonetisation process.

According to the division bench, government did not do proper homework before taking the decision, which led to the currency crisis in the country.

The High Court also observed that bank employees should have taken more active role in such situation to reduce people's harassment.

However, the court said that it would not direct the Central government to cancel its decision or policy.

West Bengal Chief Minister Mamata Banerjee, who is presently in Delhi to fight against the Centre's order of demonetisation, welcomed the Calcutta HC's direction.

Meanwhile, the West Bengal government has formed a high-level committee, led by state's Chief Secretary Basudeb Banerjee, on Friday to observe the live effects of demonetisation and currency crisis in the state.

The apex court had earlier too asked the Union government to submit an affidavit regarding the steps it has taken to improve the situation.

It also asked the government to consider raising the withdrawal limit to meet the rush for cash, media reported.

In unprecedented scenes, millions of people since Nov 10 morning thronged in front of banks across the country to deposit the now-invalid Rs. 500 and rs. 1000 notes.

The Government has asked the people to deposit their Rs. 500 and Rs. 1000 notes in banks within a specific time frame and get smaller denominations in exchange.

It has also  announced that deposits above Rs. 2.5 lakh will be taxed and could draw a 200 per cent penalty if found disproportionately higher than the account owner's income.

The banks have been asked to keep the details of PAN card of people depositing such large amounts over the 50-day period till Dec 30