Bombay High Court Directs RBI to Accept ₹20 Lakh in Demonetized Notes Seized During IT Raid

The High Court of Bombay instructed the RBI to take in old demonetized currency banknotes from petitioners.

A group based in Kolhapur held cash worth ₹20 lakh in ₹500 and ₹1000 banknotes. These notes were seized during an Income Tax raid on 26th December, 2016.

The IT department returned the available cash on January 17, 2017, which was after the deposit deadline.

The RBI denied the deposit due to a lack of serial numbers as required by the Specified Bank Notes (Cessation of Liabilities) Act, 2017.

The court found that the petitioners were not at fault and so instructed the RBI to take the deposit within a week.