[UPDATED] EXPECT $100 LAWSUIT

ACTING secretary general of the Sanatan Dharma Maha Sabha Vijay Maharaj, son of the late Satnarayan Maharaj, is threatening to take the State to court over the demonetisation of the $100 note in favour of new polymer notes.

In particular, he has taken issue with the time period given to citizens to exchange their paper bills for polymer ones.

The Central Bank has said after December 31, the $100 paper bills in circulation will cease to be legal tender.

However, in a pre-action protocol letter sent to the Attorney General on Wednesday attorneys for Maharaj said the oppressive and disproportionate way the demonetisation exercise is being undertaken infringes on the rights of citizens to their enjoyment of property.

“While it is accepted that a bona fide change in the form of legal tender may serve a legitimate aim and may be necessary to combat the proliferation of counterfeit currency, the oppressive and disproportionate power to render the monetary value of currency, legitimately held by citizens, invalid within a paltry period of 14 days constitute an impermissible fetter on citizens right of enjoyment of property,” attorneys Rhea Khan, Jagdeo Singh, Dinesh Rambally, Kiel Taklalsingh and Stefan Ramkissoon said in the letter.

The lawyers said their client intends to challenge the decision to cancel the existing $100 bill as being an irrational, disproportionate, harsh and oppressive exercise of power.

Separate pre-action protocol letters were sent to the Finance Minister and the Governor of the Central Bank asking for an appropriate undertaking to be given within 48 hours which seeks a suspension of the “vague and uncertain provisions” recently enacted as part of the Miscellaneous Provisions (Proceeds of Crime and Central Bank) Act 2019.

The attorneys say the amendments give the minister the arbitrary power to extend the time for the exchange of the bills, but that power was “vague, unspecific and arbitrary.” “In essence, the power to extend in circumstances that the minister deems appropriate is an insufficient procedural protection to the citizen and does not tilt the scales of proportionality in favour of the impugned legislation,” the letter said.

In a notice on Wednesday, Central Bank advised that the amended legislation provided for $100 notes to be exchanged for a period of three months after the deadline of December 31. However, the owner of the notes must give sufficient reason for his/her inability to exchange the notes by the deadline. The Minister of Finance may also further extend the date in any case that he considers appropriate to do so, the notice said. According to Maharaj’s attorneys, “Since this proclamation by the Governor of the Central Bank, there has been widespread panic/chaos at all banking institutions throughout this country.

“The inconvenience and pain of demonetisation have been evident. Citizens from far and wide have all queued up in absurd lines at various banking institutions to exchange their ‘old bills’ to ‘new’ ones.

“There have also been reports of various elderly persons falling ill and fainting away in these lines waiting to change their ‘old notes’ to ‘new ones.’ Unofficial reports have come to our client’s attention that certain businesses/businessmen, in attempting to get to their banks, were targeted by criminal elements and have been robbed,” the letter added.

They are hoping for an extension for the exchange of notes.

The attorneys said the daunting task of converting the “magnitude of currency” has been further exacerbated by the fact that cash-counting machines and automated banking machines are not yet configured to dispense the new polymer notes. They said many people chose to not to bank their money, to avoid heavy interest charges, while Muslims do not believe in keeping their money at banking institutions. The letter said they are the ones to be severely prejudiced by the new law.

This story was originally published with the title "Sat's son threatens to sue over $100 exchange" and has been adjusted to include additional details. See original post below.

ACTING secretary general of the Sanatan Dharma Maha Sabha Vijay Maharaj, son of the late Satanarayan Maharaj, is threatening to take the State to court over the demonetisation of the $100 note in favour of new polymer notes.

In particular, he has taken issue with the time period given to citizens to exchange their paper bills for polymer ones.

The Central Bank has said after December 31, the $100 paper bills in circulation will cease to be legal tender.

However, in a pre-action protocol letter sent to the Attorney General on Wednesday, Maharaj's attorneys said the oppressive and disproportionate way the demonetisation exercise is being undertaken infringes on the rights of citizens to their enjoyment of property.

“While it is accepted that a bona fide change in the form of legal tender may serve a legitimate aim and may be necessary to combat the proliferation of counterfeit currency, the oppressive and disproportionate power to render the monetary value of currency, legitimately held by citizens, invalid within a paltry period of 14 days constitute an impermissible fetter on citizens right of enjoyment of property,” attorneys Rhea Khan, Jagdeo Singh, Dinesh Rambally, Kiel Taklalsingh and Stefan Ramkissoon said in the letter.

The lawyers said their client intends to challenge the decision to cancel the existing $100 bill as being an irrational, disproportionate, harsh and oppressive exercise of power.

Separate pre-action protocol letters were sent to the Finance Minister and the Governor of the Central Bank asking for an appropriate undertaking is given within 48 hours. The letter did not specify exactly what was being asked for in the interim.