The Supreme Court on Friday questioned 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, refused to put on hold petitions pending in various high courts challenging the Centre’s move to scrap Rs 500 and Rs 1,000 banknotes.
The surprise move has led to a cash chaos in the country, with snaking queues continuing outside banks and ATMs even after 10 days of the decision. The high-value notes accounted for 86% of the currency in circulation. The government, which has limited cash withdrawals, has struggled to keep up with the demand.
The Centre admitted that it was facing problem in moving cash to banks, ATMs and post offices. Multiply petitions reflected the scale of the problem, the court said, adding it might move petitions pending various high courts to the one in Delhi.