Chidambaram: Whether the objs were achieved may be outside judicial review. The ques here is whether the procedure adopted to achieve those objs were in accordance w law.
Chidambaram: V soon fake 2000 notes were found. Technology is neutral...govt can get the technology, but so can counterfeiters. We believe that none of the objectives were achieved.
Justice Nazeer: What about black money and terror funding?
Chidambaram: They are saying fake currency, black money, and fake currency used for terror funding...fake currency ultimately taken out was negligible.
Chidambaram: Another obj is to tackle hyperinflation, where currencies become worthless...to be replaced by currency of worth.
Bench asks about purpose of demonetisation.
Chidambaram: Every currency note issued is a liability on the RBI. Liabilities keep mounting by unused notes, but these are extinguished by demonetisation.
Chidambaram: Second ques is, does S 26 give you the power? If so, then why in 1978 did you have to pass a separate law?
Chidambaram: 15.44 lakh crores demonetised...the-then AG said to the Court that we expect that 3 lakh crores will not be returned, added to Govts dividend, this later increased to 4 lakh crores...Ultimately, only 16000 crores was not returned
Chidambaram: What we are seeing is Hamlet without the Prince of Denmark!
Chidambaram: My submission is that this was a perverse reversal of procedure. Where is the application of mind? Letter of Nov 7, agenda for board meeting, actual resolution of RBI not placed on record.
Chidambaram: Within minutes of RBI giving the recommendation, the notification is issued, Hon'ble PM goes on TV and makes the declaration. His Cabinet colleagues are made to wait. Is this the procedure envisioned u/s 26?