Refund of interest on seized currency follows release of the principal where the department actually earned interest.

Where seized Indian currency is directed to be released, any interest actually earned by the department on that currency is also refundable to the applicant. The Tribunal noted that the record did not clearly establish whether the currency had been deposited in a bank or had generated interest, but accepted the principle that, if the department had earned interest on the seized amount, that interest must be paid over together with the principal on release. The operative effect is that refund relief extends to both the seized currency and the interest actually accrued, if any.

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Issues: Whether the applicant was entitled to refund of the interest actually earned, if any, on the seized Indian currency when the currency itself was directed to be released.

Analysis: The Tribunal had already set aside the impugned order and granted consequential relief in respect of the seized currency. On the present application, it was found that the record did not clearly show whether the currency had been deposited in a bank and had earned interest. The Tribunal nevertheless accepted that, where the department had actually earned interest on the seized amount, the applicant was entitled to receive that interest along with the principal currency on release.

Conclusion: The applicant was held entitled to refund of the interest actually earned by the department, if any, along with the seized Indian currency.

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