The Supreme Court on Monday upheld the Centre’s decision to demonetise the currency notes of Rs. 500 and Rs. 1000 denominations, dismissing the pleas challenging the 2016 demonetisation.

A constitution bench of justices comprising S Abdul Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian and BV Nagarathna held that demonetization could not be struck down on the grounds of proportionality.

Justice Gavai pronouncing the verdict said, “We find that the three purposes are proper purposes and there was a reasonable nexus between the objects and the means to achieve the objects. Action cannot to be struck down on the basis of the doctrine of proportionality.”

The apex court had reserved its judgments on the batch of 58 petitions on December 7.

Earlier, the apex court had asked the Centre and Reserve Bank of India to place before it the records pertaining to the 2016 demonetisation decision in a sealed envelope.

It had said that it has the power to examine the manner in which the decision for demonetisation was taken adding that the judiciary cannot fold its hands and sit just because it is an economic policy decision.

The top court's remarks came when the Reserve Bank of India counsel made the submission that judicial review cannot apply to economic policy decisions.

RBI had told the apex court about the objective of the demonetisation policy to curb black money and fake currencies.

Attorney General R Venkatramani had said that the economic policy of demonetisation was connected to a social policy where three evils are attempted to be addressed.