[Instead of doing away with corruption, demonetisation has opened up
another brand new avenue - conversions of scrapped currency notes into
new ones, with hefty commissions, of course.]

http://scroll.in/latest/824305/how-are-you-seizing-crores-of-new-notes-every-day-if-banks-say-they-dont-have-money-sc-asks-centre

NATIONAL NEWS

How are you seizing crores in new notes every day if banks say they
don't have money, SC asks Centre

The apex court also asked why the government could not extend the
exemption on the use of demonetised Rs 500 and Rs 1,000 notes at
hospitals and petrol pumps.

3 hours ago
Updated 3 hours ago
Scroll Staff

The Supreme Court on Thursday asked the government how the I-T
department was seizing crore of rupees in new currency every day when
banks are not even able to provide people the weekly withdrawal limit
of Rs 24,000. Appearing for the Centre, Attorney General Mukul Rohatgi
blamed bank managers. “Bank managers have done this fraud and they are
being nabbed,” Rohatgi said.

The senior lawyer also pointed out that two Axis Bank managers have
been arrested for fraud, and said investigators are looking into
similar cases, reported The Indian Express. Rohatgi said the
government cannot sit at every bank in the country to ensure their
proper functioning. Rohatgi said people should be patient for “70
days” and bear with the discomfort because the government had declared
a “revolution” against black money and corruption in the country after
70 years.

The bench led by Chief Justice of India TS Thakur observed, “Some have
plenty [of new currency], and there are some who have nothing.”
However, Rohatgi said that a total of Rs 7.5 lakh crore, including Rs
5 lakh crore in new currency notes, has been made available for
transactions. According to him, the cash crunch in the country will be
over soon.

The apex court also asked the Centre why the exemption on the use of
the demonetised Rs 500 and Rs 1,000 notes at hospitals and petrol
pumps could not be extended. Rohatgi said, “It cannot be a matter of
judicial review as to which exemptions should continue. After all,
these are issues of executive policy.” The exemption ended on the
midnight of December 14. The Centre demonetised Rs 500 and Rs 1,000
notes on November 8.

The apex court bench reserved its order for the next hearing. The
court is expected to announce its verdict in the first week of
January.


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