Arun Jaitley introduces demonetisation bill in Lok Sabha

The Specified Bank Notes (Cessation of Liabilities) Bill, 2017, is aimed to replace the ordinance on note ban introduced by the government in December 2016.

Arun Jaitley introduces demonetisation bill in Lok Sabha

In the fourth day of the Budget session, Union Finance Minister Arun Jaitley on Friday introduced a bill that formally making the ban of Rs 500 and Rs 1,000 notes a law in the Lok Sabha.

The Specified Bank Notes (Cessation of Liabilities) Bill, 2017, is aimed to replace the ordinance on note ban introduced by the government in December 2016.

President Pranab Mukherjee had approved the ordinance on demonetization in December last year.


The central government introduced the bill now as any ordinance passed by a government must be replaced by a bill within 42 days of the commencement of a session to avoid it's being lapsed.

However, the bill was opposed by Trinamool Congress, saying it is "illegal".

Reports said a war of words was witnessed in the House as the Trinamool Congress member Saugata Roy and Finance Minister attacked each other over the issue.

"This bill is actually illegal because the basic statement by the Prime Minister (on demonetisation), without any notification on November 8 was illegal. No reference was made to the Parliament..." Roy was quoted by IANS as saying.

"This bill, and the ordinance are illegal. The government has imposed a disruptive step on the whole country's economy. I am told even the Finance Minister did not know about the demonetisation move till the evening before. I oppose introduction of this bill," he added.

Stating the member was wrong on several accounts, Jaitley said a “bill can be opposed only on two grounds - One that the House does not have legislative competence or it is unconstitutional. His objection is not on either ground.”

"The November 8 notification was under Section 26-2... RBI had the competence to pass the order," Jaitley added.