Arguing that the decision-making process for demonetisation was “deeply flawed”, Chidambaram alleged that the Center had proposed the move, and reserve Bank of India “Simply and humbly” adopted the motion. “There was no deliberation, no application of mind.” The entire “decision making” process was “pushed forward” in 24 hours. He alleged that the Center withheld four important documents from the Supreme Court on the 2016 note ban verdict. The document was a November 7 letter from the Center to the RBI; Agenda note placed before the Central Board of RBI; Minutes of the meeting of the RBI Central Board and its recommendations and actual cupboard Verdict on 8 November. Chidambaram said that despite six years, the above documents have not been placed in the public domain.
He said the Center has not disclosed who attended the crucial meeting of the Central Board of RBI on November 8. Chidambaram argued that at the time of demonetisation, the RBI board did not even have the minimum number of directors prescribed under the RBI Act.
The bench asked Chidambaram what direction the Supreme Court can give as demonetisation is already over and cannot be undone. In response, Chidambaram said that the Supreme Court could at least declare that the decision-making process resulting in demonetisation was flawed. Chidambaram argued, “There will be anarchy if such a decision-making process is retained.” Referring to the Centre’s affidavit to keep the decision of demonetisation secret, Chidambaram said the decision to declare war also involved secrecy, but a lot of deliberation took place. He said a separate law should have been brought before announcing demonetisation. A five-judge Constitution bench of Justices Abdul S Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian and BV Nagaratna had on October 12 directed the Center and the RBI to file a comprehensive affidavit. Defending the move, the Center told the Supreme Court in its affidavit last week that demonetisation was a deliberate decision and part of a drive to eliminate black money.