India’s high court docket stated Monday that the federal government’s shock determination in 2016 to demonetize high-value payments was authorized and brought after session with India’s central financial institution.

The five-judge structure bench was listening to petitions difficult the foreign money ban that rendered 86% of India’s foreign money invalid with out warning. They contended that the transfer was not a thought of determination of the federal government and must be struck down by the court docket.

Four judges within the five-member bench stated the federal government made the choice after consulting with the Reserve Bank of India and said there was no flaw within the decision-making course of.

Justice BV Nagarathna, nonetheless, gave a dissenting judgment, calling the choice “unlawful” and “an exercise of power, contrary to law.” She stated the foreign money ban might have been carried out via an act of Parliament, not by the federal government.

In November 2016, Prime Minister Narendra Modi made a shock TV announcement that each one 500-rupee and 1,000-rupee notes could be withdrawn instantly from circulation. The authorities defended the choice by saying it could root out illegally hoarded money, struggle corruption and crack down on cash laundering and terrorist financing.

The authorities ultimately launched new foreign money notes value 500 and a couple of,000 rupees. However, the sudden determination precipitated losses for small companies and producers, bringing on an financial hunch and months of financial chaos for peculiar, cash-dependent Indians.