Innocent-owner protection under the Gold Control Act applies to primary gold, but release does not legalise continued possession.

The proviso to Section 71(1) of the Gold Control Act, 1968 applies to primary gold because the phrase "any gold" covers primary gold under Section 2(j). Read with the main provision, the proviso prevents confiscation where the gold belongs to persons other than the person whose act or omission rendered it liable to confiscation and that act or omission occurred without their knowledge or connivance. The prohibition on ownership or possession of primary gold does not exclude the proviso; it only means that release does not confer a right to retain the gold and any disposal must still comply with the regulatory scheme. Confiscation was therefore unwarranted on these facts.

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Issues: Whether the proviso to Section 71(1) of the Gold Control Act, 1968 applies to primary gold, so as to prevent confiscation where the gold belongs to persons other than the person whose act or omission rendered it liable to confiscation and such act or omission was without their knowledge or connivance.

Analysis: Section 71(1) uses the expression "any gold", which includes primary gold as defined in Section 2(j). The proviso is part of the same provision and must be read with the main enactment. Although Section 8(1) prohibits ownership or possession of primary gold, that prohibition does not make the proviso inapplicable. The proviso merely prevents confiscation in the specified circumstances; it does not legalise continued possession by the owner. On release, primary gold may still have to be sold to a licensed dealer or delivered for conversion into ornaments, so that the proviso can operate consistently with Section 8(1) and the earlier regulatory regime under the Defence of India Rules.

Conclusion: The proviso to Section 71(1) applies to primary gold, and confiscation was not warranted against the owners in the absence of their knowledge or connivance.

Final Conclusion: The order of confiscation was set aside, and the seized primary gold was directed to be released to the appellants with the further requirement that it be disposed of in the manner directed by the Administrator.

Ratio Decidendi: A proviso barring confiscation of gold belonging to an innocent owner applies even to primary gold, and it must be harmoniously construed with the statutory prohibition on possession so that release does not confer a right of continued retention.

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