TaxTMI 
TaxTMI 
2025 (4) TMI 1645
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....lication of the petitioner seeking release of Rupees Fifteen Lakhs which was seized by CBI by the impugned order. It will be apposite to reproduce the operative part of the impugned order which reads as under: "...The cash of Rs. l5 lakhs seized from the office chamber of the accused-petitioner during search is not properly accounted for by him. The source of the seized cash is not clear as to whether it is legal or illegal from the averments of the petition and submissions made on behalf of the petitioner. 5. Considering the facts and circumstances of the case, nature of allegation and gravity of the offence as well as improper keeping of huge unaccounted money in shape of cash I am not inclined to allow the petition filed by the petitioner to release the cash of Rs. 15 lakhs in his favour..." Aggrieved by such finding of the court below, the present Revision Petition has been preferred by the petitioner. 3. Heard, Mr. Debashis Sinha, learned Counsel for the petitioner and Mr. Sarthak Nayak, learned Special P.P. -Cum- Retainer Counsel (CBI) for the opposite party. 4. The present petitioner who is an accused in this case, is alleged to have been involved in an illegal mone....
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....perty is subject to speedy and natural decay, or if it is otherwise expedient so to do, the Court may, after recording such evidence as it thinks necessary, order it to be sold or otherwise disposed of. Explanation. - For the purposes of this section, "property" includes - (a)property of any kind or document which is produced before the Court or which is in its custody; (b)any property regarding which an offence appears to have been committed or which appears to have been used for the commission of any offence." "457. Procedure by police upon seizure of property. (1)Whenever the seizure of property by any police officer is reported to a Magistrate under the provisions of this Code, and such property is not produced before a Criminal Court during an inquiry or trial, the Magistrate may make such order as he thinks fit respecting the disposal of such property or the delivery of such property to the person entitled to the possession thereof, or if such person cannot be ascertained, respecting the custody and production of such property. (2)If the person so entitled is known, the Magistrate may order the property to be delivered to him on such conditions (if any) as th....
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....e custody of the court or of the police for any time longer than what is absolutely necessary. As the seizure of the property by the police amounts to a clear entrustment of the property to a government servant, the idea is that the property should be restored to the original owner after the necessity to retain it ceases. It is manifest that there may be two stages when the property may be returned to the owner. In the first place it may be returned during any inquiry or trial. This may particularly be necessary where the property concerned is subject to speedy or natural decay. There may be other compelling reasons also which may justify the disposal of the property to the owner or otherwise in the interest of justice. The High Court and the Sessions Judge proceeded on the footing that one of the essential requirements of the Code is that the articles concerned must be produced before the court or should be in its custody. The object of the Code seems to be that any property which is in the control of the court either directly or indirectly should be disposed of by the court and a just and proper order should be passed by the court regarding its disposal. In a criminal case, the p....
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.....P. - Cum- Retainer Counsel(CBI) for the opposite party vehemently opposed the contentions of the petitioner's counsel and submitted that the aforesaid judgements would only be applicable in the case when the person is lawfully entitled to such currency notes and relied on the order of the Trial Court which state that the seized amount was properly not accounted for by the accused-petitioner and the source of seized cash was not clear as to whether the same was legal or illegal. 8. In addition to this, Mr. Nayak, learned Special P.P. -Cum-Retainer Counsel(CBI) for the opposite party submitted that the present case against the accused petitioner was registered pursuant to the Hon'ble Supreme Court's orders in WP(C) No. 401 of 2013 and WP(C) No. 413 of 2013, treating FIR No. 82 dated 14.05.2013 as the original FIR. During the investigation, it was revealed that investors had deposited money with M/s IRL through its agents under various illegal schemes, amassing approximately Rs.565 crores in between 2009-2014, out of which Rs.343 crores remained unpaid to investors. The Hon'ble Supreme Court, in Subrata Chattoraj v. Union of India [(2014) 8 SCC 768], noted the involvement of in....
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....ore this Court in the case of Santosh Kumar Tripathy Vs. State of Odisha [CRLMC No. 2631 of 2023, High Court of Orissa, Cuttack], this Court in the disposal order held thus: "4. Regard being had to the submissions made by the learned counsel and the facts of the present case, I am inclined to allow the petition. The trial court is directed to release the seized cash deposited by the I.O. in the court in favour of the petitioner by preserving color photographs of the currency notes. It is open for the trial court to impose any other condition as deemed fit and proper." Similar modus can be applied in the present case. Furthermore, in Santosh Kumar Tripathy v. State of Odisha (supra), this Hon'ble Court recognized the importance of preserving the evidentiary value of seized cash through colour photographs while ensuring that the currency itself remains available for economic use. This principle aligns with broader economic considerations, where unnecessary stagnation of monetary resources can hinder financial fluidity. Releasing the seized cash with proper safeguards, such as the preparation of Panchnamas and photographic documentation, balances both the interests of justice and....
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....in available for restitution if required by the court at a later stage, and that any misuse or misappropriation of the released amount shall lead to immediate legal consequences. With these conditions in place, the Court finds no justifiable reason to retain the seized cash in judicial custody when its circulation could contribute to economic activity without compromising the investigation or trial proceedings. Similar course of action may be taken in such cases arising out of the jurisdiction of this Court, keeping in mind the demand and need (which may vary) in different cases. 12. In addition to this, it is also desirable that not only regarding cash but also other materials which are seized such appropriate action must be taken by the authorities and courts below to do the needful and dispose of the items unless necessary to be in custody, which will additionally save the resources of the state and will also aid in the wellbeing of the rightful owner. By taking into consideration, the law laid down by the Hon'ble Supreme Court in Sundarbhai (supra) judgement and various other High Courts, this Court feels it expedient to cull out following principles regarding disposal of t....
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....79; Ensuring that any legal dispute concerning ownership are resolved efficiently through judicial orders. ● If a vehicle cannot be immediately returned, it should be stored in a secure facility instead of being left exposed to damage. ● If the rightful owner is untraceable or the vehicle is linked to a serious crime, the court may order its auction or disposal through appropriate channels after preserving appropriate records and photographs for the process of trial(in case linked to a crime) subjecting the provisions of law. 5. Management of Precious Articles (Gold, Jewellery, and Valuables) 5.1 Precious items such as gold, silver, and gemstones should not be kept in police custody for extended periods. Instead, they should be stored in proper lockers or bank lockers under court supervision. 5.2 If ownership is clear, the magistrate may order their release after verification, ensuring that: ● Photographic or video graphic evidence is recorded for reference. ● The claimant provides a bond ensuring return if required for trial. 5.3 If ownership is contested or the valuables are crucial evidence, they should be preserved under strict security ....
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....rity of the digital evidences is not lost, before returning the device. ● A proper chain of custody must be maintained on record to ensure authenticity. 9.2 If the device is not crucial to the case, it should be released to the owner without unnecessary delay. However, if it at all is a key piece of evidence and authenticity of the digital evidence can be challenged at a later stage then strict storage protocols must be followed for storing the evidence. 10. Disposal of Miscellaneous Seized Property 10.1 Items that do not fall under specific categories should be assessed based on their legal relevance and economic value. 10.2 If an item is no longer required for investigation or trial, it should be: ● Returned to its rightful owner, if identifiable. ● Auctioned or disposed of, if no claimant comes forward within a reasonable time. 10.3 Courts should introduce a time-bound review mechanism to prevent unnecessary accumulation of seized goods. 11. Role of the Courts and Investigating Authorities 11.1 Magistrates should take proactive measures to ensure that seized property is not retained for an extended period without justification. Court direc....