Centre: No action for not depositing old notes

Constitution Has Limited Delhi Govt’s Powers LG Must Give Reasons For Decisions Says Justice D.Y. Chandrachud

Blow to Arvind Kejriwal as SC says Delhi govt needs LG's approval for ruling national capital

Justice Chandrachud said that the President exercises his administrative control over Union Territory through Lt Governor, and if there are specific instances of excesses, then the court can address them.

The 14 petitioners, including NRIs who were not in the country when demonetisation was announced, however, said that they neither challenged the constitutional validity of the demonetisation nor the provisions of the RBI Act.

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Subramanium cited the instances of Lt. Governor holding meeting with the officials without the presence of Ministers concerned and issuing instructions. "All we want is the government or RBI to examine the genuineness of difficulty we had in approaching banks between November 9 and December 30 a year ago and permit us to redeem the scrapped currencies in our possession, which is our hard-earned money", they said.

The bench also pointed to the financial relationship between the Central government and the Union Territory of Delhi that was distinct from the relationship that it has with other states, saying that Centre has more involvement in the financial affairs of Delhi.

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The government had filed a petition against a High Court verdict which said that Delhi is not a state and hence the administrative power lies with the LG. "Yes, that has to be genuine", the bench said.

A five-judge Constitution bench of Chief Justice Dipak Misra and Justices A.K. Sikri, A.M. Kanwilkar, D.Y. Chandrachud and Ashok Bhushan, made this preliminary observation when senior lawyer Gopal Subramaniam, representing the AAP government, argued that the L-G had created a situation where no bureaucrat is obeying directions of ministers and chief minister Arvind Kejriwal.

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As for the contention that the L-G was exceeding his powers, the court told the AAP government to spell out the specifics to enable the court to assess its points.

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