https://countercurrents.org/2023/02/democracy-not-synonymous-with-reasonable-nexus-or-good-intentions/ The Supreme Court’s majority judgment on demonetisation is based primarily on the premise that demonetisation had a `reasonable nexus’ with the objectives sought to be achieved. And, it is not relevant whether the objective was achieved or not. The dissenting judgment argues that the decision was `well-intentioned’ and well thought of, but it was unlawful on legal grounds. So, both the judgments imply that demonetisation was implemented to achieve desirable objectives.
Neither of them considered it important to go into the issue of whether the objectives were achieved and further, whether demonetisation could at all have achieved the stated objectives. Without that, how can it be concluded either that there was a reasonable nexus or to say that the decision was well-intentioned? If the objectives were not achieved and if the expert opinion was that the objectives could not have been achieved, then one could not conclude about reasonableness or good intentions.
Indeed, checking the black economy was important for the nation then and now. But it has been known that stopping the `legal tender character of currency’ or the broader policy of `demonetisation’ cannot help check the black economy. It was also known that if it is done suddenly, it causes a shortage of money in the economy, which leads to freezing of transactions in the economy and a crisis ensues. Thus, characterising demonetisation as `well intentioned’ or having a `reasonable nexus’ is unreasonable.
by Dr. Arun Kumar
16/02/2023