HC reserves order on Rs2.5 lakh withdrawal limit for weddings

Plea in court seeks relaxation of cap of Rs2.5 lakh cash withdrawal for marriages as there were various ‘customary donations’ which one gives during the wedding


The counsel for the petitioner told the bench that some kind of liberty should be given to the parents of the bride and groom to withdraw money as per their requirements. Photo: Pradeep Gaur/Mint
The counsel for the petitioner told the bench that some kind of liberty should be given to the parents of the bride and groom to withdraw money as per their requirements. Photo: Pradeep Gaur/Mint

New Delhi: The Delhi high court on Monday reserved its order on a plea seeking relaxation of the withdrawal limit of Rs2.5 lakh for marriages under the Centre’s demonetisation scheme.

The plea brought by Birender Sangwan, an advocate, also sought a directive that would enable court-related payments such as court fees and costs imposed for cancellation of warrants etc. to be paid with demonetised Rs500 and Rs1,000 notes.

“Liberty must be given to the families to spend and such restriction amounts to infringement of our customs,” Joginder Sukhija, counsel for the petitioner, said.

ALSO READ: Demonetisation: Bill to amend Income Tax Act tabled in Lok Sabha

To this, Sanjay Jain, additional solicitor general, clarified the need for such a limit and submitted that in the absence of a withdrawal limit, anybody could show a wedding invitation card and withdraw money from the bank, frustrating the whole purpose of demonetisation.

“There cannot be an unfettered system. Besides, the Centre has put in place various exemptions under the scheme,” Jain said.

A bench headed by chief justice of Delhi high court, G. Rohini, heard the matter at length and said that an order would be passed on Tuesday.

Later in the day, the court also agreed to hear a public interest litigation brought by Ashok Sharma, a businessman who sought quashing of a notification under which the Centre capped the withdrawal limit of funds deposited in banks before 8 November.

ALSO READ: Delhi high court to hear plea challenging limit on cash withdrawal

The PIL, which was earlier disposed of by a different bench of the court, will be heard again on Tuesday.

The PIL claimed that setting a withdrawal limit on money deposited before 8 November was unconstitutional. Amounts deposited before demonetisation have no connection with Rs500 and Rs1,000 notes ceasing to be legal tender, the petition said.

Prime Minister Narendra Modi, in a televised address to the nation on 8 November, said Rs500 and Rs1,000 banknotes will cease to be legal tender as part of a crackdown on black money, and counterfeit currency notes that go towards funding terrorist groups.

READ MORE