High Court directs exchange of demonetized notes, sets timeline under Specified Bank Notes Rules

The High Court disposed of the writ petition, instructing the petitioner to approach the respondents within four weeks to exchange old demonetized currency notes with new ones, subject to specified terms and conditions outlined in the Specified Bank Notes (Deposit of Confiscated Notes) Rules, 2017. The respondents were directed to process the exchange within four weeks of the petitioner's approach, effectively concluding the legal proceedings.

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Issues:
1. Writ petition seeking exchange of old currency notes seized by police.
2. Compliance with Specified Bank Notes (Deposit of Confiscated Notes) Rules, 2017.
3. Interpretation of rules for deposit or exchange of demonetized currency.
4. Disposal of the writ petition by the High Court.

Analysis:
1. The petitioner filed a writ petition under Articles 226/227 of the Constitution seeking a mandamus to exchange Rs.9,00,000 in old currency notes seized by police authorities. Despite submitting required documents, the amount was not released until the Income Tax Office's approval, delaying the process. The Asstt. Director of Income Tax later ordered the release of the currency, which was done on 24.03.2017. The petitioner then sought exchange of the old currency notes from the respondents, leading to the present petition.

2. Respondents had no objection to granting the prayer based on a previous judgment and Reserve Bank of India's stance. The RBI's reply cited the Specified Bank Notes (Deposit of Confiscated Notes) Rules, 2017 issued by the Central Government, which allowed for deposit or exchange of confiscated notes under specific conditions. The rules differentiated between notes confiscated before and after 30th December 2016, outlining procedures for deposit or exchange based on court directions and serial numbers.

3. The Rules specified conditions for deposit or exchange of demonetized currency notes, emphasizing the importance of court directions and serial numbers noted by law enforcement agencies. The RBI issued circulars to its offices for accepting such notes subject to compliance with the Rules. The petitioner's case for deposit or exchange was to be considered upon producing a court direction meeting the specified criteria, as outlined in the Rules.

4. Consequently, the High Court disposed of the writ petition, instructing the petitioner to approach the respondents within four weeks of the order to exchange the old demonetized currency notes with new ones, subject to fulfilling the terms and conditions mentioned in the Rules. The respondents were directed to process the exchange within four weeks of the petitioner's approach, bringing closure to the legal proceedings.

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