Return of seized demonetised currency must follow statutory procedure and RBI routing before release to the claimant.

Seized currency that is no longer required for any pending legal purpose may be returned only through the applicable statutory process. The governing framework includes the Code of Criminal Procedure, the Specified Bank Notes (Cessation of Liabilities) Act, 2017, the Specified Bank Notes (Deposit of Confiscated Notes) Rules, 2017, and RBI operational instructions. The currency must first be routed through the Reserve Bank of India with the required serial numbers, and the authorities must comply with the prescribed statutory and procedural requirements before remitting the amount to the claimant. The legal position stated is that the return cannot be withheld without a surviving legal impediment.

---

---

Issues: Whether the seized currency notes were liable to be returned to the appellant in terms of the applicable legal provisions and whether the authorities were bound to process the return in accordance with the 2017 demonetisation-related statutory framework.

Analysis: The seized sum had been cleared for release after completion of investigation, and there was no surviving impediment to its return. The governing framework comprised the provisions relating to custody and disposal of property under the Code of Criminal Procedure, the Specified Bank Notes (Cessation of Liabilities) Act, 2017, and the Specified Bank Notes (Deposit of Confiscated Notes) Rules, 2017, together with the operational instructions issued by the Reserve Bank of India. The Court directed that the currency be first routed through the Reserve Bank of India with the required serial numbers and that the concerned authorities act strictly in accordance with the statutory and procedural requirements before remitting the amount to the appellant.

Conclusion: The issue was decided in favour of the appellant, and directions were issued to facilitate return of the seized amount through the prescribed statutory procedure.

Final Conclusion: The order closing the writ petition was modified, and the appeal was disposed of by directing compliance with the applicable statutory and operational framework for release of the seized currency.

Ratio Decidendi: Where seized currency is no longer required for any pending legal purpose and the governing special regime permits deposit or exchange of demonetised notes, the competent authorities must process its return in accordance with the applicable statutory procedure and cannot withhold it without legal impediment.

---