Quick Summary
The Bombay High Court has directed the Reserve Bank of India (RBI) to accept Rs 20 lakh in old demonetised Rs 500 and Rs 1000 currency notes that were confiscated from a group of Kolhapur residents during an Income Tax raid on December 26, 2016. The court found it unjust to penalize the petitioners
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FAQ :
The Bombay High Court ordered the RBI to accept a deposit of ₹20 lakh in old demonetised ₹500 and ₹1000 currency notes.
The money was seized from a group of Kolhapur residents during an Income Tax raid on December 26, 2016.
The deadline for depositing old demonetised notes was December 31, 2016.
The cash was confiscated by authorities during an IT raid on December 26, 2016, and was only returned to the residents on January 17, 2017, after the deposit deadline had passed.
The RBI refused the deposit citing the Specified Bank Notes (Cessation of Liabilities) Act, 2017, and that deposits beyond the deadline required submission of serial numbers, which authorities had not recorded.
The ruling sets a precedent for cases where citizens couldn't deposit demonetised currency due to circumstances beyond their control and reinforces fairness in financial regulations.
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