India’s top court upholds legality of 2016 currency ban

By SHEIKH SAALIQ
Associated Press

NEW DELHI (AP) — India’s top court says the government’s surprise decision in 2016 to demonetize high-value bills was legal and taken after consultation with India’s central bank. The five-judge constitution bench was hearing petitions challenging the currency ban that yanked 86% of India’s currency out of circulation without warning. On Monday, four judges said there was no flaw in the decision-making process. One judge dissented, calling the currency ban unlawful. In November 2016, India withdrew all 500-rupee and 1,000-rupee notes from circulation, to try to root out illegally hoarded cash, fight corruption and crack down on money laundering and terrorist financing. The currency ban hurt the economy, causing months of financial chaos for ordinary, cash-dependent Indians.