Replying to Supreme Court’s order of providing a deposit window to the individuals, the government on Wednesday said that providing an option to deposit old currency notes will defeat the purpose of a reform like demonetisation.
ET quoted senior ministry officials, who are directly familiar with the matter saying that the government will respectfully consider the order of the supreme court, however, such a window could result in a large amount of money flowing back into the system, which will eventually defeat the purpose of a reform like demonetisation on such a big scale.
Image Source : ET
According to senior government officials, the order by supreme court gives an open opportunity to the illegal money holders. This is also a fact that India shares an open border with Nepal and Bhutan. This route could be used to bring huge illegal money back into the system.
Talking of the consequences, the above-quoted official said that the illegal money coming from international destinations was a prime source of funding for terrorists and Naxalites. The move of demonetisation has put a check over the terrorist activities on a big scale.
In its order on Tuesday, Supreme Court of India had asked government to provide another window for depositing the old notes to the individuals with genuine reasons behind not being able to deposit the money in the prescribed period. The government is likely to submit its reply on July 18, the next hearing of this case.