CORONAVIRUS AND FINANCIAL EMERGENCY
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Abstract
On April 1, 2020 a division bench of Supreme Court of India comprising of Justices L Nageswara Rao and S Abdul Nazeer deferred a PIL for 2 weeks which asked the Supreme Court to issue direction to the Central Government to declare financial emergency under Article 360 of the Constitution in the wake of the coronavirus pandemic.i
The petition filed by a think tank named Centre for Accountability and Systemic Change (CASC) contended before the Supreme Court that the declaration of financial emergency is required in order to safeguard the rule of law in country. The petitioners have further argued before the Apex Court that just by imposing Section 144 of the Criminal Procedure Code or by issuing notification under the Disaster Management Act, 2005 or by imposing provisions of the Epidemic Disease Act, 1897 the Covid-19 crisis can’t be managed. So, the declaration of financial emergency is the need of the hour.ii
However, it is pertinent to note that last week when Finance Minister Nirmala Sitharaman announced a relief package worth INR 1.70 lakh crore to fight the Coronavirus pandemic, she ruled out the imposition of any financial emergency.iii
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